Strengthening Local Value Chains in Benin

The European Investment Bank (EIB) and Banque internationale pour l’industrie et le commerce (BIIC) have partnered to deploy a €100 million financing facility aimed at bolstering agricultural value chains in Benin. This operation, backed by the European Commission, will specifically target small and medium-sized enterprises (SMEs) operating in strategic sectors for the EU.

The initiative prioritizes three key commodity chains: cotton and textiles, soya, and cashew – representing over 70% of the total facility. The dual objective is to support agro-industrialization and job creation within Benin while diversifying European supply sources for critical agricultural inputs.

Strategic Alignment with EU Goals

This partnership aligns directly with the EU’s Global Gateway strategy, which seeks to mobilize over €300 billion in public and private capital by 2027. The EIB Global arm serves as the lender of record, while BIIC leverages its local expertise as Benin’s largest bank.

Early Success Stories

Two initial beneficiaries demonstrate the facility’s impact:

• Akiyo, a Savè-based trading company, received financing for soya and cashew sourcing and distribution
• Couleur Indigo, a textile producer in Ouidah, secured support to expand indigo-dyed fabric production using locally processed cotton

The initiative also incorporates a technical assistance program funded by Luxembourg’s Financial Inclusion Fund, which will enhance BIIC’s capacity in sustainable finance and help SMEs meet international standards.

Gender Equity Focus

Signed under the EU’s “Women for Stronger Communities and Growth” framework, this facility prioritizes enterprises that employ or are led by women – reflecting a growing emphasis on inclusive development impact.