BENIN Trends and Developments Contributed by: Nicolin Assogba, D2A SCPA
prises. The public portfolio is thus called upon to con - tribute not only to growth and employment, but also to the ecological transition. This orientation is not isolated. It echoes the interna - tional movement that now places sustainability at the heart of the governance of state-owned enterprises. It also aligns with the strategy of the regional financial market, which is developing green, social and sus - tainability bonds – a financing channel particularly relevant for public companies carrying high-impact infrastructure projects. The interplay between public-interest mission and sustainability requirements is, in this respect, a natural one. Responsible for water, energy or infrastructure, public enterprises are on the front line of climate and social issues. Making sustainability a component of their governance, rather than an incidental objective, is consistent with their very purpose. The direction of travel also raises the question of standards. As sustainable-finance instruments devel - op on the regional market, issuers – public enterprises among them – will need credible frameworks to meas - ure and report the environmental and social impact of the projects they finance. The maturing of these reporting practices will determine whether the sustain - ability dimension becomes a substantive discipline or remains a label. The challenge, in short, will be to translate the obli - gation into concrete practices: measurable targets, reliable reporting and integration into the steering car - ried out by boards. Failing that, the risk would be to reduce sustainability to a statement of intent, whereas its value lies precisely in its verifiable implementation. Converging with international standards Read as a whole, Benin’s trajectory converges with the international standards on the governance of state-owned enterprises. The OECD Guidelines on this subject, revised in 2024, are the global bench - mark that public authorities use to design effective frameworks for the ownership and governance of state-owned enterprises. They advocate profession - alised state ownership, enhanced transparency and
accountability, integrity and a level playing field with private operators. The axes of the Beninese reform – professionalisa - tion of the bodies, contracting on objectives, external control, integration of sustainability – largely match these orientations. The 2024 revision specifically add - ed a chapter devoted to state-owned enterprises and sustainability, which Benin’s 2025 climate obligation strikingly illustrates. Two themes of the benchmark resonate particularly in the Beninese context. The first is integrity: the pre - vention of corruption and conflicts of interest within entities that handle public money, an area in which the regulation of agreements and the prohibition of insider lending already echo international expectations. The second is the level playing field – the principle that public enterprises competing with private operators should not enjoy undue advantages – a question of fair competition that will grow in importance as the state’s commercial footprint expands. The ambition of this benchmark is to expose state- owned enterprises to the same transparency and accountability requirements as listed companies. That is precisely the direction Benin is taking when it subjects its state-owned companies to OHADA com - pany law and applies to them management disciplines drawn from the private sector. This convergence is not merely a matter of principle. For a state seeking to attract capital and give its enter - prises credibility with international funders, alignment with recognised standards is a competitive asset. It facilitates dialogue with investors, reduces the per - ceived risk premium and opens access to financing on more favourable terms. The road ahead, and what it means for business The reform is not complete, and several areas of work remain open. The first is effective implementation: an ambitious legal framework produces its effects only if it is accompanied by capacity, steering tools and a shared governance culture. The second is trans - parency towards the public, still behind that of listed companies. The third is the ever-delicate balance
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