Benin

After the first democratic municipal elections in 2002, the Beninese state gradually began to transfer powers to the municipalities. To ensure that the municipalities also have sufficient funds available to fulfil 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, this is still not sufficient to cover all needs. Many municipalities also lack suitably qualified personnel to provide municipal services efficiently and at a high standard. German development cooperation supports the decentralisation efforts of the Beninese government by contributing both to financing municipal investments and to expanding capacities within municipalities.

On behalf of the German government, KfW Development Bank, together with other development partners, co-finances the financial transfer mechanism FADeC and supports the development of central structures which control the use of funds and the quality of municipal infrastructure within the framework of annual audits. With the allocations of FADeC, investment expenditures of municipalities have more than tripled compared to 2008, and the access of the population to basic services has been improved substantially. Municipalities are now perceived as key actors in the political landscape; the political elite is increasingly recruited from municipal politics. The annual municipal audits set standards and report misconduct of municipal administrations, allowing for a gradual improvement of local administrative action (e.g. regularity in the awarding of contracts).

Economic development in Benin depends upon agriculture – and what it is based on, i.e. a solid supply of natural resources. Yet both the environment and nature are under increasing threat in Benin from the growing population and their desire for incomes and prosperity.

The air is increasingly polluted in the cities of Benin while the soil in rural areas is overexploited. Forests are disappearing and lagoons on the coast once rich in various species are overfished.

The programme Agriculture Investment Fund launched in 2004 and supported by KfW Development Bank using funding from the German federal government is countering this trend. It contributes to the development of sustainable farming by strengthening the responsibility of the farmers. It supports them in the effort to increase agricultural production as well as their revenues to improve the nutritional situation and the adjustment to climate change.

The provision of a rural land register helps to clarify ownership and usage rights of natural resources and thus creates the legal certainty needed for investments. Furthermore, KfW Development Bank finances the following infrastructure projects on behalf of the German government: (i) small-scale irrigation in floodplains 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 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 – and this is visible in several ways: girls in particular have to walk three to four hours each day to the nearest source of water – and therefore have no time left to go to school. 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.

Stopping this downwards spiral of poverty, disease and loss of earnings is the aim of the water programmes in Benin: here the priority is to utilise the plentiful reserves of freshwater using modern methods. There are three pillars to KfW's commitment to a better supply of drinking water and sanitation: KfW Development Bank promotes central supply systems in larger villages surrounding towns and cities, hand-pump wells in rural regions as well as the expansion and maintenance of urban water and sanitation systems.

Additionally, payment concepts are developed to finance the operation of water systems. That said, the poorest also need to be able to afford water, and for them even low charges are often too high. Pro-poor tariffs are one possible option, which are calculated by water utilities with the help of economists.

Project Example - Water supply  (PDF, 123 KB, non-accessible)