CEPA will increase UAE exports to Benin by more than $1 billion by 2033

Dr Thani Bin Ahmed Al Zeyoudi, Minister of Foreign Trade, said that the Comprehensive Economic Partnership Agreement (CEPA) signed between the United Arab Emirates and the Republic of Benin is expected to increase UAE exports to Benin by more than $1 billion by 2033, while boosting Benin’s exports to the UAE by more than $100 million over the same period. This will create new opportunities for trade and investment cooperation between the two countries.

In a statement to the Emirates News Agency (WAM), he explained that the agreement provides for high levels of trade liberalisation, covering approximately 97% of current trade between the two countries, alongside the removal or reduction of a significant proportion of customs tariffs.

He stressed that the agreement represents an important addition to joint cooperation between the UAE and Benin, as well as to the UAE’s broader partnership with the African continent. He noted that negotiations had progressed at a record pace in recent months.

He congratulated the leadership and business communities of both the UAE and Benin on the signing of the agreement. He highlighted the opportunities it offers across numerous sectors, particularly given Benin’s strong economic growth over the past two years, with growth exceeding 7.5% last year. This performance reflects the significant opportunities available for UAE private-sector companies seeking to enter the Beninese market.

He noted that Benin’s main exports to the UAE include cotton, certain types of nuts, soybeans and a range of food products. These goods have opportunities in the UAE market and can also be re-exported through the UAE to global markets.

He added that the Beninese market imports a wide range of equipment, electronics, devices and spare parts that directly support the industrial and infrastructure sectors.

He affirmed that the agreement also opens up opportunities in services and investment. He pointed to the signing of an agreement in the renewable energy sector during a roundtable meeting held earlier today.

He noted that UAE companies are already operating in Benin, investing in garment factories that benefit from the availability of cotton. He also emphasised that precious metals, particularly gold, will play a significant role in expanding bilateral trade, alongside substantial opportunities in the electronics and technology sectors.

He highlighted the importance of logistics, given Benin’s position as a gateway to neighbouring countries and its role in exporting a wide range of goods from Africa to global markets. He explained that efforts are currently underway to strengthen logistical connectivity to facilitate the movement of goods and services.

Dr Al Zeyoudi reaffirmed that the agreement further strengthens the UAE’s presence across the African continent and extends the country’s investment experience to Benin. He added that the agreement forms part of the UAE’s Comprehensive Economic Partnership Agreements programme, which aims to diversify international markets and expand the global presence of UAE companies and residents of the country.

Meanwhile, Olushegun Adjadi Bakari, Minister of Tourism and Foreign Trade, in charge of Industry and Private Investment Promotion for the Republic of Benin, said that the signing of the Comprehensive Economic Partnership Agreement (CEPA) between Benin and the United Arab Emirates today marks an important milestone for both countries and opens new avenues for strengthening their trade and investment relations.

In a statement to the Emirates News Agency (WAM), he said that trade relations between the two countries are growing by more than 30% annually, emphasising that the agreement will take these relations to a new level by opening up markets between the UAE and Benin.

He noted that the UAE will be able to access West African markets, which have a combined population of approximately 400 million, through Benin, while Beninese products will also gain access to the UAE market.

He added that Benin is Africa’s largest cotton producer, with annual production exceeding one million tonnes. The country also has significant ambitions in the textile sector and produces cashew nuts, shea products and a wide variety of fruits. He explained that, through the agreement, Benin aims to export these products to the UAE and subsequently to all Gulf Cooperation Council (GCC) countries.

In return, he said, Benin looks forward to importing machinery and various goods from the UAE to meet demand in Benin and across the wider West African region. He stressed that the investments the agreement is expected to attract from the UAE represent one of its most important benefits for Benin. He noted that the country enjoys political and economic stability and recorded gross domestic product (GDP) growth of more than 8% last year, while International Monetary Fund (IMF) forecasts point to future growth exceeding 7.5%.

WAM