Benin accelerates soybean transformation with US$50M investment – Milling Middle East & Africa Magazine

BENIN – Benin is accelerating its agricultural transformation following a strategic US$50 million investment to expand local soybean processing and industrial crushing capacity.

Supported through public-private partnerships, multilateral development facilities, and regional financial institutions, including funding channeled through the Glo-Djigbé Industrial Zone (GDIZ), the multi-million-dollar capital injection marks a major turning point in the nation’s strategy to move away from raw commodity exports toward high-value agro-industrial processing.

The investment funds the construction and operational expansion of modern industrial crushing facilities and oil refineries, including major units built by industrial partners such as EHUA Industries.

According to project officials, this complex includes a soybean crushing unit with a capacity of 300 tons per day, as well as a complete feed unit for livestock and poultry, capable of producing up to 180,000 tons per year.

With an annual processing goal scaling beyond 100,000 metric tonnes of raw soybeans, these new plants will transform locally grown crops into refined soybean oil, protein meal, and specialized derivative products.

By processing harvest yields domestically rather than exporting raw seeds, Benin aims to capture greater profit margins, generate thousands of direct and indirect industrial jobs, and retain economic value within its national borders.

Beyond primary processing, the US$50 million framework directly reinforces West Africa’s expanding livestock and aquaculture sectors. A substantial portion of the processed soybean meal will feed into domestic and regional animal feed mills, dramatically lowering input costs for poultry and livestock farmers across the region.

Furthermore, the government’s agricultural policy mandates close integration with local smallholder cooperatives, ensuring guaranteed off-take agreements, improved seed varieties, and technical assistance for tens of thousands of rural farmers.

For the Beninese authorities, this integration should help increase locally generated added value and reduce the country’s dependence on imported products.

The investment comes as the Beninese government seeks to expand soybean production and encourage domestic processing.

For the 2026/27 agricultural campaign, the government has set a soybean production target of 770,000 tonnes. It has also identified 450,000 tonnes as the processing capacity to be served by local industries, while introducing incentives for farmers supplying domestic processing plants.

This industrial transition aligns with Benin’s overarching Government Action Programme (PAG), which prioritizes structural transformation, local processing, and trade diversification under regional trade frameworks like the African Continental Free Trade Area (AfCFTA).

By turning its northern savannahs and central farming belts into a reliable agricultural production hub, Benin is positioning itself as a dominant regional player in non-GMO soybean products.

Agriculture now accounts for about 26.3% of Benin’s GDP, with public investment in the sector exceeding 10% of government spending. As harvests keep climbing, officials see additional processing infrastructure as essential to capturing more value domestically rather than exporting raw soybeans.

In July, the European Investment Bank  (EIB), through its development arm EIB Global, and the Banque Internationale pour l’Industrie et le Commerce (BIIC) announced €100 million (US$116.16M) in financing for strategic agricultural value chains, including soybean, cotton and cashew.

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