The African Development Bank and the Autonomous Port of Cotonou (PAC) have signed a funding agreement of EUR 80 million to modernize facilities and extend the infrastructure of the port in Benin's economic capital.
The agreement was signed on 12 February 2025 by the Director of the African Development Bank's Infrastructure and Urban Development Department, Mike Salawou, and Baart Van Eenoo, Managing Director of Pac.
The funding will help PAC to implement its Master Plan for 2021-2026, a five-year investment programme aimed at renovating and replacing obsolete port infrastructure, increasing its capacity and improving its quality of service to attract additional traffic.
The African Development Bank is mobilizing EUR 55 million, plus EUR 25 million from the Africa Growing Together Fund, a special fund supported by the Bank and the People's Bank of China. In addition, USD 18.3 million are provided by the Canada - African Development Bank Climate Fund (CACF). The fund, supported by Canada, finances climate projects by supporting sustainable development and social inclusion.
The CACF will also provide technical assistance to promote gender equality and women's empowerment.
"The funding from the African Development Bank will enable PAC to instigate its master plan with two key projects: the creation of a new, 25-hectare terminal on land reclaimed from the sea and a new, smart, 14-hectare buffer parking area to manage lorry movements in and out of the port. This will allow the port to transfer its current activities to the new areas, paving the way to the next steps in its ambitious master plan," commented Van Eenoo.
"The signing of this agreement marks an important step in the development of the PAC and the economy of Benin, with positive knock-on effects for trade, competitiveness, job creation and social inclusion," emphasized Salawou.
This is the first private-sector infrastructure project funded by the Bank in Benin using hybrid climate finance. It will help to strengthen the competitiveness of the port, which is a key economic hub for the West African country in the Gulf of Guinea. Among other things, it plans to build a bulk terminal (T5), extending it by 25 hectares for the storage of bulk and other goods. The works will include dredging the basin, widening the access channel and extending the terminal's western sea wall.
The project also aims to expand the Zongo parking area and centralize lorry access with automatic gates. Building a lorry park on the Zongo site with an integrated, digitized management system connected to the port's databases and the Single Foreign Trade Platform (GUCE) will improve traffic flows and speed up goods handling.
Modernizing the port will increase the volume of goods handled and reduce waiting times for ships. Implementing the changes will support job creation and employ Beninese businesses during the construction and operational phases. The project will also strengthen regional integration by improving trade within the sub-region.
The Cotonou port, one of West Africa's Atlantic Ocean main platforms, acts as a transit point for landlocked countries such as Niger, Burkina Faso and Mali.
