Benin

After the first democratic municipal elections in 2002, the Benin government gradually began to transfer powers to the municipalities. To ensure that the municipalities also have sufficient funds available to perform these new tasks, the government created a budget line (Fonds d’Appui au Développement des Communes, FADeC) in 2008. Although more money is transferred to the municipalities every year, it is still not sufficient to cover all funding requirements. Many municipalities also lack suitably skilled and qualified personnel to provide municipal services efficiently and to a high standard. German development cooperation supports the decentralisation efforts of the Benin government by contributing both to financing municipal investments and building capacity within the municipalities.

On behalf of the German Federal Government, KfW Development Bank, together with other development partners, co-finances the financial transfer mechanism FADeC and supports the development of central structures which monitor the use of funds and the quality of municipal infrastructure as part of annual audits. As a result of the FADeC allocations, municipal investment expenditures have more than tripled since 2008, and the population’s access to basic services has improved considerably. The municipalities are now perceived as key actors in the political landscape in Benin; municipal politicians are increasingly recruited to be part of the political elite. The annual municipal audits set standards, identify misconduct of municipal administrations and create incentives to encourage gradual improvement of local administrative action (e.g. ensuring that contracts are awarded properly).

Economic development in Benin depends on agriculture, as well as the foundation it rests on (i.e. unspoiled natural resources). Yet both the environment and nature are under increasing threat in Benin, including as a result of the growing population and its aspiration for income and prosperity.

The air is increasingly polluted in the urban areas of Benin, while soil is overused in rural areas. Forests are disappearing and lagoons along the coast, which were once home to a diverse range of species, are overfished.

The Agriculture Investment Fund programme launched in 2004 and, supported by KfW Development Bank with funds from the German Federal Government, is countering this trend. It contributes to the development of sustainable agriculture by empowering farmers. The programme helps them to boost agricultural production and their income to improve the food situation and adapt to climate change.

Funds were also provided for a rural land register, which helps to clarify ownership and rights of use over natural resources, thus creating the legal certainty needed for investments. Furthermore, KfW Development Bank is financing the following infrastructure projects on behalf of the German Federal Government: (i) small-scale irrigation in flood plains to intensify agricultural use; (ii) removal of bottlenecks in rural road networks to improve market access, and (iii) establishment of local storage capacities. The target group is the rural population of selected municipalities within the two departments of Atacora and Donga. The vast majority of Benin’s population of about 1.3 million lives in rural areas and is classified as poor or extremely poor.

Clean drinking water is scarce in Benin, a fact that manifests itself in several ways. Girls, in particular, have to walk three to four hours each day to the nearest source of water – and have no time left to go to school. Wastewater and faeces seep untreated into the ground or are pumped directly into the sea. The poor water quality is also frequently responsible for gastrointestinal infections. If the main breadwinner falls ill, the family is deprived of a key source of income. Unreliable water and sanitation services also discourage private sector activity. Jobs in business and industry cannot be created.

Stopping this downward spiral of poverty, disease and loss of earnings is the aim of the water programmes in Benin, where the priority is to ensure that freshwater resources are available in sufficient quantity and quality. There are three pillars to KfW’s commitment to a better supply of drinking water and sanitation: KfW Development Bank has successfully promoted central supply systems in larger villages and hand-pump wells in rural regions. Today, investments are concentrated in rapidly growing peripheral areas in the Cotonou metropolitan region and neighbouring urban areas. This will support drinking water production and distribution for as many as 250,000 households and businesses. A sewage sludge treatment plant under construction is intended to improve hygiene for 300,000 people and protect the sea from pollution.

In addition, payment concepts are being developed to finance the future operation of sewage sludge collection and treatment together with the drinking water supply. However, the poorest also need to be able to afford water, and for them even low charges are often too high. Pro-poor tariffs, which are calculated by water utilities with the help of economists, are one possible option.

Project information - Water supply and sanitation  (PDF, 93 KB, non-accessible)