10021316-Lot 1: Strengthening MSME Competitiveness, Market Access and Business Environment Reform in Benin

Benin's economy has experienced strong growth in recent years, with GDP growth estimated at around 6-7% annually. Nevertheless, this growth has not translated sufficiently into sustainable employment and income opportunities for the majority of the population. Micro, small and medium-sized enterprises (MSMEs), which represent more than 95% of registered businesses in Benin, continue to face major structural constraints limiting their competitiveness, productivity and job creation potential.

These constraints include limited access to finance and markets, low levels of innovation and digitalisation, weak managerial and technical capacities, insufficient quality infrastructure, and a mismatch between labour market needs and available skills. The project "Employment-oriented promotion of the competitiveness of micro, small and medium-sized enterprises" (ProPME 2) aims to improve the competitiveness of MSMEs in selected sectors and regions in Benin with a strong employment impact. The project focuses particularly on enterprises operating in the agri-food sector, renewable energies, crafts and services, as well as on strengthening entrepreneurial ecosystems and labour market intermediation structures.

Particular attention is given to women-led enterprises and young entrepreneurs. The project contributes to Benin"s National Development Plan 2018-2025, the national SME promotion strategy and the national employment promotion strategy. It is implemented as part of the wider programme "Improvement of income and employment situation in Benin", jointly supported by German Development Cooperation through GIZ and KfW.

In addition, the project supports the implementation of the Alliance for Product Quality in Africa (AfPQ), a multi-actor initiative implemented by GIZ and PTB to improve product quality and market access under the African Continental Free Trade Area (AfCFTA). The module is structured around three main outputs:

• Output 1 aims to strengthen the entrepreneurial, technical and market integration capacities of MSMEs through tailored training, coaching and quality management support.
• Output 2 aims to improve the business environment and strengthen support institutions involved in MSME development, quality infrastructure and public-private dialogue.
• Output 3 aims to improve labour market intermediation and the alignment between vocational training and the skills needs of MSMEs.