Benin secures US$364M funding from IDB to strengthen sustainable agricultural systems
The funding will modernize the Godomey–Ouidah–Hillacondji road corridor and strengthen agricultural productivity, food security, and climate resilience.
BENIN – Benin has secured financing from the Islamic Development Bank (IsDB) to strengthen agricultural productivity, improve soil fertility and build climate resilience through the sustainable intensification of legume-based farming systems.
The funding forms part of two co-financing agreements worth €326.06 million (US$364.4 million) signed on October 12, 2026, to support agricultural development and transport infrastructure.
The agricultural component will receive €19.17 million (US$21.46M) from the IsDB for a €20.70 million (US$23.17M) project.
The initiative will focus on improving legume-based agricultural systems across five development hubs, aiming to strengthen soil health, increase farm productivity, and improve food security.
The investment is also intended to help farming communities better withstand climate-related challenges, including irregular rainfall and declining soil fertility.
Legumes, including cowpeas, soybeans, groundnuts, and beans, can support sustainable farming by fixing atmospheric nitrogen through their association with soil bacteria.
Integrating these crops into farming systems can improve soil fertility, diversify production and reduce reliance on synthetic nitrogen fertilizers when supported by appropriate crop management practices.
Legumes also provide protein-rich food and raw materials for livestock feed and food-processing industries, creating additional income opportunities for agricultural communities.
The project comes as agriculture remains an important source of employment and livelihoods in Benin.
World Bank data, citing International Labour Organization estimates, indicate that agriculture employed approximately 40.2% of the country’s workforce in 2025.
Improving the productivity and resilience of farming systems is therefore important for rural incomes, domestic food supplies and the development of agricultural value chains.
The government has also increased support for agricultural inputs. For the 2026/2027 growing season, Benin allocated CFA31.87 billion (US$54.49M) for fertilizer subsidies, representing a 22% increase compared with the previous year.
Combining input support with sustainable soil management and improved crop production practices could help farmers improve yields while addressing longer-term soil fertility challenges.
The agreements were concluded in Bangkok on the sidelines of the Annual Meetings of the World Bank Group and the International Monetary Fund.
They followed discussions between IsDB Group President Muhammad Al Jasser and Hugues Oscar Lokossou, Benin’s minister delegate responsible for external resource mobilization and debt management.
The second agreement finances the modernization of the Godomey–Ouidah–Hillacondji road corridor, complementing the agricultural investment by improving transport connectivity.
Better roads can improve access to agricultural inputs, connect farmers with markets, and reduce logistical barriers to moving produce.
Together, the investments are expected to support Benin’s wider efforts to strengthen food security, improve agricultural competitiveness and promote more sustainable rural development.
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