Benin has secured CFA7.7 billion ($13.5 million) to finance 365 small and medium-sized enterprises (SMEs) as part of the 2026 intake of the Support Project for Entrepreneurship in Benin (PAEB), according to an official statement released on X on March 19.
The initiative is designed to increase the proportion of women-led businesses to 40% while extending its reach across the country.
Authorities are aiming to improve inclusion and further develop the national entrepreneurial ecosystem. The Small Business Development Agency is implementing the PAEB with backing from the French Development Agency and the European Union. The program runs on a total budget of 32.2 million euros ($37.2 million) for the 2023–2028 period.
Its objective is to enhance access to both technical assistance and financial services for micro, small, and medium-sized enterprises, while also boosting their competitiveness and resilience.
This phase builds on what officials have described as a “successful” first stage, during which 160 SMEs received support, including 46 women-led businesses, with total funding surpassing CFA3.3 billion.
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“Our goal now is to take things a step further by providing more support to businesses, expanding the program’s reach across the country, and promoting women’s entrepreneurship,” said Marlène Houssou, program coordinator.
SMEs remain a cornerstone of Benin’s economy, representing over 90% of businesses and accounting for most new job creation.
Despite their importance, they continue to face persistent structural challenges, particularly limited access to financing and markets, which constrain their growth and competitiveness.
In response, the government has adopted the SME Development Agency’s 2024–2029 strategic plan, aimed at strengthening support systems and building a more structured entrepreneurial ecosystem over time.
With this expanded phase of the PAEB, Benin intends to reinforce support for SMEs and drive more inclusive economic growth.
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Image Credit: Powers of Africa
