IFC Invests in Benin Terminal to Boost Trade and Create Jobs in Benin and West Africa

Cotonou, Benin, 28 November 2024 — To enhance the Port of Cotonou’s operations and boost trade flows in Benin and West Africa, IFC today announced a financing for Benin Terminal (BT), the country’s largest container terminal.

IFC will loan up to €20 million to BT, a subsidiary of Africa Global Logistics (AGL), owned by Mediterranean Shipping Company Holding SA (MSC), the world’s largest container shipping company. IFC's financing, which is part of a wider €165 million investment plan initiated by BT to improve its operations, will enable the company to increase its berth and yard capacity. Following the upgrades funded by this financing, which marks IFC’s first-ever direct investment in Benin’s infrastructure sector, IFC expects the expanded activity of the terminal to add an estimated $873 million in gross value to Benin’s economy (the equivalent of roughly 1.2 percent of its GDP) and support several thousands of additional indirect and induced jobs by 2035.

The upgrades, will help overcome capacity bottlenecks and significantly increase container handling efficiency and service quality in the terminal. The project will extend the current terminal capacity by doubling the length and number of quays, and adding new environmentally friendly cranes for yard handling. Additionally, fifteen hectares of new storage platform will be developed, along with modernized terminal access, which will increase the static capacity by 33 percent.

The project will also focus on sustainability and climate change mitigation, adhering to IFC's Performance Standards. It will be developed under AGL’s Green Terminal Label, which aims to enhance environmental performance and formalize the company's green commitments in the logistics sector.

"We are delighted to partner with IFC on this transformative project,” said Fabrice Ture, CEO of Benin Terminal. “The expansion of our terminal will significantly improve our operations, making Benin a more attractive hub for regional trade. This project underscores our commitment to contributing to the economic development of Benin and the broader West African region."

“Promoting the industrialization of the Beninese economy, including by developing the underlying supportive transport and logistics infrastructure, is a key pillar of IFC’s strategy for Benin,” said Olivier Buyoya, IFC’s Regional Director West Africa. “By expanding Benin Terminal's capacity, we are facilitating regional trade and improving connectivity and logistics to strengthen competitiveness and promote inclusion."

The Port of Cotonou, which houses BT, is vital for the country's commerce and customs revenue and handles the majority of Benin's international trade. It is also a key transit point in West Africa, offering access for exports and imports to other landlocked countries in the region. The enhanced capacity of Benin Terminal will significantly contribute to regional trade integration, helping grow trade cargo volumes that will induce economic output in supply chains such as agriculture, trade, and transport.

IFC has an active investment portfolio of $60.8 million in Benin and an advisory portfolio worth $1.5 million, with most of the focus in the financial sector. The World Bank’s work in the country supports Benin’s poverty reduction strategy to increase growth, access to basic services governance and institutional capacity building.