The European Investment Bank (EIB), through EIB Global, and the Banque internationale pour l’industrie et le commerce (BIIC) have announced a €100 million financing initiative to strengthen agricultural value chains in Benin. Backed by a guarantee from the European Commission, the partnership supports the European Union’s Global Gateway strategy, promoting sustainable economic growth while enhancing supply chain resilience between Africa and Europe.
The financing will primarily benefit small and medium-sized enterprises (SMEs) and mid-sized companies operating in Benin’s agricultural sector, with at least 70% of the funding dedicated to three strategic industries: cotton and textiles, soya, and cashew. These sectors play a vital role in Benin’s economy while also supplying key raw materials to European industries.
The initiative aims to expand local processing capacity, improve value addition, and strengthen trade links with European markets. By supporting domestic processing of cotton, soya, and cashew, the programme will help create jobs, improve product traceability, and build more resilient and sustainable supply chains aligned with European environmental and quality standards.
Among the first beneficiaries are Akiyo, a Beninese company involved in the sourcing and distribution of soya and cashew products, and Couleur Indigo, a textile manufacturer expanding its production of indigo-dyed fabrics using locally produced cotton. Both businesses contribute to local employment, with a strong focus on creating opportunities for women.
Alongside the financing package, Luxembourg will support a dedicated technical assistance programme through its Financial Inclusion Fund. The programme will help strengthen BIIC’s sustainable finance capabilities while providing local businesses, cooperatives, and women-led enterprises with support to develop bankable projects, improve business practices, and adopt internationally recognised environmental, social, and governance standards.
The partnership also reinforces BIIC’s role in providing long-term financing to Beninese businesses by offering attractive lending conditions for investment projects and working capital. The initiative is expected to improve access to finance for businesses while supporting the country’s broader goals of industrialisation, economic diversification, and job creation.
The €100 million financing agreement highlights the European Union’s commitment to promoting sustainable development through the Global Gateway strategy. By strengthening agricultural value chains, encouraging local processing, and supporting inclusive economic growth, the initiative will benefit businesses, communities, and supply chains across both Benin and Europe.
