Present day Benin was the site of Dahomey, a West African kingdom that rose to prominence in about 1600 and over the next two and a half centuries became a regional power, largely based on its slave trade. Coastal areas of Dahomey began to be controlled by the French in the second half of the 19th century; the entire kingdom was conquered by 1894. French Dahomey achieved independence in 1960; it changed its name to the Republic of Benin in 1975.

The President is directly elected by absolute majority popular vote in 2 rounds if needed for a 5-year term (eligible for a second term); last held on 6 March and 20 March 2016 (next to be held in 2021). The National Assemble (Assemblee Nationale) is formed of 83 seats; members directly elected in multi-seat constituencies by proportional representation vote; members serve 4-year terms.

Real GDP growth rose from 4% in 2016 to an estimated 5.5% in 2017. The next two years look similarly promising, with growth projected at 6.1% in 2018 and 6.5% in 2019. Economic performance in 2016–17 was principally the result of reforms taken under the 2016–21 Government Action Plan, known as Benin Revealed, to increase public investment in infrastructure, agriculture, tourism, and basic services. This positive outlook is also due to substantial increases in agricultural production, especially in cotton (estimated at 450,000 tons in 2016), an increase in electricity production, and economic recovery in Nigeria, an important trading partner.

The budget deficit crept up from 5.6% of GDP in 2016 to an estimated 5.9% in 2017. With the government expressing interest in reining in spending, the deficit is projected to decline to 4.8% in 2018 and 3.1% in 2019. The tighter fiscal policy that took effect in 2017 aims to achieve the 3% target for the budget deficit set by the West African Economic and Monetary Union (WAEMU). According to an International Monetary Fund (IMF) debt sustainability analysis, Benin moved from a low risk to a moderate risk of debt distress. Public debt increased from 50.3% of GDP in 2016 to 53.4% in 2017 due to higher spending related to implementation of the Government Action Plan. Government efforts to mobilize resources through a bond issue, as well as technical and financial partnerships, are expected to reduce public debt to 51.5% of GDP from 2019 onward. Due to WAEMU’s policy of price stability, good performance in agriculture, and weak oil prices, inflation is likely to remain below the 3% target. The current account deficit worsened from 7.3% of GDP in 2016 to an estimated 9.5% in 2017 but is projected to improve slightly in 2018 and 2019.