Benin has mineral deposits, iron ore in the Atakora Mountains, limestone in Onigbolo, and offshore oil reserves exceeding 5 billion barrels of crude oil and 91 billion cubic meters of natural gas.
Oil production peaked in the 1980s, totaling 22 million barrels before halting in 2004. Efforts to restart production could yield up to 7,500 barrels daily.
Agriculture drives Benin’s economy. It employs over 70% of the population and contributes 32% of GDP. The country ranks Africa’s fourth-largest cotton producer and exports cashews, cocoa beans, and palm oil.
Rich fisheries in rivers and lagoons also boost seafood exports.
Yet, environmental degradation threatens Benin’s forests, which cover 65% of its land. In rural areas, biomass energy dominates, with 97% of households relying on firewood for cooking.
Benin’s Natural Resources And Their Location
Here are the natural resources that have been discovered in Benin, and their locations:
| Natural Resources | Locations |
|---|---|
| Iron Ore | Atakora Mountains, northeast of Kandi |
| Limestone | Onigbolo |
| Marble | Dadjo |
| Chromium Ore | Near Natitingou in the northwest |
| Ilmenite | Coastal areas |
| Gold | Near Natitingou |
| Pottery Clay | Sakété |
| Offshore Oil | Sémé Field near Cotonou |
| Mahogany, Iroko, Teak | Southwest and Central regions |
| Cotton | Central and southern regions |
| Cashews | Southern regions |
| Cocoa Beans | Southern regions |
| Palm Oil | Various regions |
| Fish (Marine & Inland) | Rivers (Ouémé, Couffo, Mono), lagoons, coastal waters |
Discoveries Of Benin’s Natural Resources
By around 500 AD, iron was already in use in what is now Benin. Archaeological evidence suggests early inhabitants crafted tools and weapons from iron, to begin resource exploitation in the region.
A breakthrough came in 1968 with the discovery of offshore oil in the Sémé field near Cotonou. This finding was a turning point for Benin’s economy.
Production began in 1982 under a Norwegian company, reaching its peak in 1986 at 8,000 barrels per day. By 1990, Benin had exported 1.27 million barrels, positioning itself as a key player in Africa’s oil industry.
The oil boom brought economic growth, new infrastructure, and increased foreign investment. In the 1970s, geological surveys uncovered valuable mineral deposits. Iron ore was found in the Atakora Mountains and northeast of Kandi, supporting construction and manufacturing.
Limestone, discovered at Onigbolo, became essential for cement production. Marble deposits at Dadjo contributed to construction and decorative applications.
Chromium ore and gold, seen near Natitingou, presented opportunities for industrial use and artisanal mining. These discoveries expanded Benin’s resource base beyond oil. Agriculture took notice in the 1980s. Though farming was not a new practice, this period saw rapid expansion.
Cotton became Benin’s leading export crop, making the country Africa’s fourth-largest producer. Cashew and palm oil production also generates significant revenue. Agriculture became the backbone of the economy, employing a large portion of the workforce and driving rural development.
Oil production halted in 2004 due to declining output, but interest in the sector resurfaced in the 2000s. Renewed exploration efforts suggest that if production resumes, output could reach up to 7,500 barrels per day.
However, Benin’s forests and waterways are still an essential economic asset. The country’s forests, rich in tropical hardwoods like mahogany and teak, cover about 65% of the land, providing timber and supporting biodiversity.
Meanwhile, fisheries along rivers, lagoons, and coastal waters sustain thousands of families and contribute to food security.
Viability Of Benin’s Natural Resources
1. Minerals
Benin has rich mineral deposits, including iron ore, limestone, marble, and ilmenite as we’ve said. Iron ore is located in the Atakora Mountains, while limestone reserves in Onigbolo are instrumental in cement production.
Despite their abundance, these resources are untapped due to infrastructure limitations. Mining activities pose environmental risks, including land degradation and water pollution. Weak environmental regulations make these challenges worse.
The export potential is high, but poor transportation networks and limited industrial capacity restrict full exploitation.
2. Forests
Forests cover 65% of Benin’s land, providing valuable timber like mahogany and teak. However, deforestation is a major issue, driven by agricultural expansion and urbanization. Benin has one of the highest deforestation rates in West Africa.
The consequences are severe. Biodiversity loss, soil erosion, and rising greenhouse gas emissions threaten the environment. Coastal areas are also eroding rapidly, with Benin experiencing some of the highest erosion rates in the Gulf of Guinea.
Timber exports contribute to the economy, but sustainable management is important. Reforestation programs aim to restore forest cover by 2030.
3. Agriculture
Agriculture is the backbone of Benin’s economy, employing over 70% of the population and contributing 32% to GDP.
Cotton is the country’s top export crop, making Benin Africa’s fourth-largest producer. Cashews, cocoa beans, and palm oil are also key commodities.
However, intensive farming depletes soil quality and causes water scarcity. Climate change, with unpredictable rainfall patterns, makes farming even harder.
4. Oil
Offshore oil production peaked in the 1980s but stopped in 2004 due to declining output. Recent exploration efforts aim to restart production at the Sémé field near Cotonou, with potential yields of up to 7,500 barrels per day.
Oil spills are a major environmental threat, harming marine ecosystems and coastal communities. Strict environmental safeguards are necessary to mitigate these risks.
If oil production resumes, it could significantly boost GDP, but it will require substantial investment in infrastructure and strict compliance with environmental standards.
5. Fisheries
Fisheries are an essential source of income for thousands of families and contribute to seafood exports. Benin’s coastal waters, rivers, and lagoons are rich in fish resources, but overfishing is a growing concern.
Unchecked fishing practices deplete fish populations and destroy marine biodiversity. Coastal erosion also disrupts fishing activities.
Implementing sustainable practices, such as catch limits and protected marine areas, can provide long-term viability while supporting local economies.
Export Potential Of Benin’s Resources
| Natural Resources | Primary Markets | Export Value (2023) |
|---|---|---|
| Cotton | India, Bangladesh, China | $200 million |
| Cashews | India, Vietnam | $150 million |
| Oil | Europe, Asia | Potential: $500 million |
| Seafood | Europe, West Africa | $50 million |
| Timber | Europe, Asia | $20 million |
Cotton is Benin’s top export crop. As Africa’s fourth-largest producer, it dominates agricultural exports. India, Bangladesh, and China are major buyers. In 2020, cotton exports brought in over $200 million. Cashews are another key export.
Benin is one of the top global producers, shipping most of its cashews to India and Vietnam. The industry supports thousands of smallholder farmers and boosts rural employment.
Oil production stopped in 2004, but revival plans could help the energy sector. If resumed, crude oil exports to European and Asian refineries could generate substantial revenue.
Seafood exports, including fresh and processed fish, go to European and West African markets. The fishing industry is great for coastal communities.
Timber exports, mainly mahogany and teak, serve furniture and construction markets in Europe and Asia. Benin’s main export markets include India, Bangladesh, Vietnam, and Europe.
India is a key destination for cotton and cashews, processing them for global distribution. Bangladesh imports over 50,000 tons of Beninese cotton annually.
Vietnam processes and re-exports Benin’s high-quality cashews, which play a major part in the global market. European countries like France and Belgium import seafood and timber.
Economic Impact Of Benin’s Resources
But, how have Benin’s natural resources helped the country’s economic landscape?
1. Contribution To GDP
Benin’s natural resources play a big part in its economy. Agriculture alone contributes about 32% to GDP, with cotton leading as a key export crop.
In 2023, cotton exports generated over $490 million, supporting thousands of farmers. Minerals, though less dominant, support construction and manufacturing, with resources like iron ore and limestone.
2. Employment Impact
Resource-related industries provide jobs for a vast portion of the population. Agriculture employs over 70% of the workforce, particularly in cotton and cashew farming.
Forestry supports local communities through timber production and wood processing. Fishing is still essential for coastal livelihoods, boosting food security and local economies.
3. Trade And Export Revenues
Natural resources drive Benin’s export economy. In 2023, total exports reached $4.17 billion, with cotton, cashews, and gold as top commodities.
India, Bangladesh, and the UAE are key trade partners, with India alone importing over $200 million worth of cotton and cashews annually.
That said, the government is investing in resource utilization. The Glo-Djigbé Industrial Zone (GDIZ) focuses on processing local resources like cotton and cashews into finished goods. Also, the Port of Cotonou expansion will improve trade efficiency, and increase export capacity.