While Benin has the relevant energy policies and regulations in place, there is potential for improvement. Attention should be given to increasing the robustness of its policy goals and commitments.
Among the three EIRA risk areas, breach of State obligations is lower compared to discrimination between foreign and domestic investors and unpredictable policy and regulatory change.
Benin has a good performance on two of the EIRA indicators, and a moderate performance on the others. Rule of law is the highest-scoring indicator with 78 points, followed by management of decision-making processes (72). On regulatory environment and investment conditions the score is 59 points, while foresight of policy and regulatory change stands at 49.
On a more detailed level, Benin’s overall sub-indicator performance is good. Management and settlement of investor-State disputes is at 80 points. It is followed by institutional governance and respect for property rights, both at 75. On transparency, the score is 68, while communication of vision and policies is at 65. Performance on the sub-indicators restrictions on FDI and regulatory effectiveness is at 60 and 58, respectively. Robustness of policy goals and commitments is the lowest-scoring sub-indicator with 33 points.