Benin's Emerging Tech Scene: A New Hub for Innovation

Benin's Startups Attract $10M+ in Funding Since 2020

Benin's startup ecosystem has raised over $10 million since 2020, positioning the country as a rising West African tech hub. Incubators like Sèmè City in Cotonou have accelerated the creation of ventures across fintech, e-commerce, and agritech. Notable startups include Nala, a fintech platform processing cross-border payments, and BeninBits, an e-commerce marketplace connecting local artisans to global buyers. Jumia, Africa's leading e-commerce player, has also expanded its logistics network in the country, tapping into a growing online consumer base.

International venture capital funds and diaspora investors have been key drivers. According to a 2025 report by the Benin Digital Agency, startup funding grew 60% year-over-year in 2024, with early-stage rounds dominating. Challenges remain—electricity reliability and talent retention are ongoing concerns, as highlighted in a recent Commonwealth thinktank report on electricity trends—but the momentum is unmistakable.

"The next decade will see Benin emerge as a serious contender in Africa's tech landscape," said a partner at TLcom Capital, which invested in Nala's $5 million Series A round in 2023.

The ecosystem is still young, but the combination of incubator support and diaspora capital is creating a self-reinforcing cycle of innovation.

Mobile Money Surpasses 40% Adoption Rate, Driving Financial Inclusion

Mobile money adoption in Benin has exceeded 40% of the adult population, up from 25% in 2020, according to the Central Bank of West African States. Leading services include MTN Mobile Money, Moov Money, and the government-backed e-card platform, which all together process over $2 billion in transactions annually. Use cases range from remittances (Benin receives roughly $500 million annually from its diaspora) to micro-loans and bill payments in rural areas.

Telecom operators have partnered with microfinance institutions to extend agent networks into remote villages. The result: over 12 million active mobile money accounts across a population of 14 million. This infrastructure is also enabling new business models in agriculture, where farmers receive payments for crops via mobile wallets, reducing reliance on cash and improving supply chain efficiency.

Government's 'Digital Benin' Initiative Targets 95% Internet Coverage by 2025

Launched in 2021, the Digital Benin initiative aims to connect 95% of the country to the internet by 2025. The government has invested over $150 million in fiber optic backbone and 4G/5G infrastructure, with 4G coverage already reaching 80% of urban areas. Regulatory reforms, notably the Startup Act of 2020, provide tax breaks for tech companies and simplified incorporation procedures. E-governance services—online tax filing, civil registration, and digitized land registries—are reducing bureaucratic bottlenecks.

These efforts are paying off: broadband penetration rose from 12% in 2019 to 34% in 2025. However, internet costs remain high, with mobile data priced at $1.50 per GB, above the African average. The government is subsidizing connectivity in underserved regions through a universal service fund.

Key Takeaways

• Benin is positioning itself as a West African tech hub with a supportive ecosystem.
• Mobile money is a key driver of financial inclusion, with growing adoption.
• Government policies and infrastructure investments are catalyzing digital transformation.
• Startups are emerging in fintech, e-commerce, and agritech, attracting foreign investment.
• Challenges remain in electricity supply, internet costs, and talent retention.
• The tech scene's growth could spur broader economic diversification beyond agriculture.