Benin Tries to Bring Informal Artisans Into the Formal Economy
Benin and France have launched a new phase of a $2 million program to modernize the country’s artisan sector. The initiative will train 825 artisans, equip new training centers and introduce a master artisan certification. The effort targets a sector that remains largely informal despite gradual progress in business formalization. . . .
Benin and France have launched a new phase of a $2 million program to modernize the country’s artisan sector. The initiative will train 825 artisans, equip new training centers and introduce a master artisan certification. The effort targets a sector that remains largely informal despite gradual progress in business formalization. Benin is stepping up efforts to modernize and formalize its artisan sector. On June 18 in Cotonou, the Benin Chamber of Trades and Crafts (CMA-Bénin) and the French Embassy unveiled the second phase of a joint project designed to strengthen vocational training and professional standards across the industry. CMA-Bénin, the country’s main institution for artisan trades, launched the program in December 2024. The two-year initiative runs through 2026 and has a budget of CFA1. 18 billion ($2 million), according to the authorities. Its goal is to strengthen technical skills, raise incomes and support a sector that has long operated with limited institutional support. Building on Early ResultsThe second phase builds on progress achieved during the first stage of the program. According to project data, 120 young people have already earned a Certificate of Professional Qualification (CQM), while 240 apprenticeship masters received training across eight trades. Several training centers have also received new equipment, and selected artisans took part in professional exchanges through France’s counterpart institution. The next phase is significantly more ambitious. It includes training for 825 artisans, advanced instruction for 120 trainers and equipment upgrades for eight additional priority training centers. The program targets 11 trades, including tailoring, masonry, auto mechanics, plumbing and welding. It covers eight of Benin’s 12 departments, including Alibori, Atacora, Borgou, Mono and Zou, reflecting an effort to reach underserved areas beyond the country’s largest cities. A New Professional Status for ArtisansAmong the measures announced, the creation of a master artisan designation stands out. The new certification aims to move beyond the traditional master-apprentice model that still dominates much of Benin’s artisan economy. It will formally recognize highly qualified professionals and create a structured system of skill levels within the sector. By introducing a certification based on internationally recognized standards, Benin hopes to raise the profile and credibility of artisan professions. CMA-Bénin said the initiative reinforces its strategic role in modernizing the sector. The benefits extend beyond symbolic recognition. Certified artisans typically gain easier access to public procurement opportunities, formal financing and social protection systems. Certification can also improve the perceived quality of services and help boost earnings. The emphasis on training outside major urban centers could also reduce regional disparities in access to professional development. For many communities, the availability of accredited trainers close to home represents a significant advantage. The long-term impact of the initiative, however, will depend on whether the government can anchor the new certification within a durable legal framework that survives beyond the life of the project. A Sector Still Dominated by InformalityFor now, most of Benin’s artisan sector remains informal. According to the third General Business Census (RGE3) conducted by the National Institute of Statistics and Demography (INStaD), Benin had 252,155 active economic units in 2023, up from 154,839 in 2008, an increase of 62. 2% over 15 years. The informality rate fell by 11. 1 percentage points during that period, declining from 97% to 85. 9%. Despite the improvement, the level remains extremely high. The African Development Bank estimates that informal employment still accounts for more than 90% of Benin’s workforce. Formalization and Taxation: A Difficult BalanceRemaining outside the formal economy carries significant costs. Artisans without formal recognition often lack access to public contracts, institutional financing and social protection. Consumers also face uneven service quality and limited safeguards. At the same time, formalization comes with financial obligations that discourage many small businesses. In November 2024, CMA-Bénin asked lawmakers to restore a reduced professional tax rate for artisans. According to the Ministry of Small and Medium Enterprises and Employment Promotion, the proposal aimed to ease the burden on small workshops and encourage registration. The costs associated with formalization remain a major obstacle for many artisans. That tension lies at the heart of the current program. The challenge is to improve skills and encourage certification without imposing a tax burden that discourages participation. Similar debates are taking place elsewhere in Africa. In Côte d’Ivoire, artisans registered under the Entreprenant regime pay a state tax equal to 2% of turnover, according to the country’s tax authority. The administration has also conducted outreach campaigns to encourage registration. In Senegal, the Ministry of Tourism and Crafts hosted an international workshop in January 2025 on simplified formalization systems. Participants called for tax frameworks tailored to small entrepreneurs in order to support business creation without penalizing the most vulnerable operators. These experiences point to the same conclusion: formalization succeeds only when certification and taxation remain balanced. Benin’s approach offers a case worth watching as other African countries seek ways to bring informal workers into the formal economy. Félicien Houindo Lokossou