Agricultural country with potential for development
Benin is an agricultural country where more than 70 % of the people live on and from the land. Most rely on subsistence farming and barely generate any income. This means almost 50 % of the population live in poverty and from less than USD 1.25 per day. Population growth is high at roughly 3%: an increasing number of people require social and economic infrastructure such as schools, roads and health units. But the public administration system is still extremely inefficient, while the private sector is weak and struggles with state interference. Corruption is rife as well; reforms are either implemented sluggishly or not at all. KfW Development Bank supports Benin with regard to its water supply, rural development, education and the decentralisation of administrative structures.