Germany – Social research services – 10021350-Lot 2: Support for employment promotion structures to improve employment support services

Benin's economy is growing rapidly, with real GDP growth estimated at approximately 6.4 % in 2023 and expected to remain above 6 % over the coming years. Despite this positive economic dynamic, the labour market remains unable to provide sufficient decent employment opportunities for the growing population. MSMEs account for more than 95 % of registered enterprises and constitute the backbone of the economy. However, they continue to face major structural constraints including low productivity and innovation, weak market integration, limited access to finance and skilled labour, insufficient support services, low digitalisation and inadequate quality assurance mechanisms. These challenges particularly affect women-led enterprises and northern regions of the country. The TVET system and labour market intermediation mechanisms are not yet sufficiently aligned with enterprise needs. At the same time, coordination between employment promotion actors and the territorial implementation of employment policies remain limited. In response to these challenges, the Government of Benin has adopted several strategic frameworks, including the National Development Plan 2018-2025, the national SME promotion strategy, the national employment policy and the "Benin Alafia 2060" vision. In parallel, Benin plans to establish a Labour Market Information System (LMIS) to strengthen labour market analysis, coordination and employment governance. The Federal Republic of Germany supports Benin in addressing these challenges through the project "Employment-oriented promotion of the competitiveness of micro, small and medium-sized enterprises" (ProPME 2). The project aims to improve the competitiveness of MSMEs in selected sectors and regions in Benin with an impact on employment. It builds on the successful approaches developed under the previous ProPME phase and contributes to strengthening MSMEs operating in the food processing industry, renewable energies, crafts and services sectors, as...