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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. France began to control the coastal areas of Dahomey 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.

A succession of military governments ended in 1972 with the rise to power of Mathieu KEREKOU and the establishment of a government based on Marxist-Leninist principles. A move to representative government began in 1989. Two years later, free elections ushered in former Prime Minister Nicephore SOGLO as president, marking the first successful transfer of power in Africa from a dictatorship to a democracy. KEREKOU was returned to power by elections held in 1996 and 2001, though some irregularities were alleged. KEREKOU stepped down at the end of his second term in 2006 and was succeeded by Thomas YAYI Boni, a political outsider and independent, who won a second five-year term in March 2011. Patrice TALON, a wealthy businessman, took office in 2016 after campaigning to restore public confidence in the government.

Benin has a youthful age structure – almost 65% of the population is under the age of 25 – which is bolstered by high fertility and population growth rates. Benin’s total fertility has been falling over time but remains high, declining from almost 7 children per women in 1990 to 4.8 in 2016. Benin’s low contraceptive use and high unmet need for contraception contribute to the sustained high fertility rate. Although the majority of Beninese women use skilled health care personnel for antenatal care and delivery, the high rate of maternal mortality indicates the need for more access to high quality obstetric care.

Poverty, unemployment, increased living costs, and dwindling resources increasingly drive the Beninese to migrate. An estimated 4.4 million, more than 40%, of Beninese live abroad. Virtually all Beninese emigrants move to West African countries, particularly Nigeria and Cote d’Ivoire. Of the less than 1% of Beninese emigrants who settle in Europe, the vast majority live in France, Benin’s former colonial ruler.

With about 40% of the population living below the poverty line, many desperate parents resort to sending their children to work in wealthy households as domestic servants (a common practice known as vidomegon), mines, quarries, or agriculture domestically or in Nigeria and other neighboring countries, often under brutal conditions. Unlike in other West African countries, where rural people move to the coast, farmers from Benin’s densely populated southern and northwestern regions move to the historically sparsely populated central region to pursue agriculture. Immigrants from West African countries came to Benin in increasing numbers between 1992 and 2002 because of its political stability and porous borders.

The free market economy of Benin has grown consecutively for four years, though growth slowed in 2017, as its close trade links to Nigeria expose Benin to risks from volatile commodity prices. Cotton is a key export commodity, with export earnings significantly impacted by the price of cotton in the broader market. The economy began deflating in 2017, with the consumer price index falling 0.8%.

During the first two years of President TALON’s administration, which began in April 2016, the government has followed an ambitious action plan to kickstart development through investments in infrastructure, education, agriculture, and governance. Electricity generation, which has constrained Benin’s economic growth, has increased and blackouts have been considerably reduced. Private foreign direct investment is small, and foreign aid accounts for a large proportion of investment in infrastructure projects.

Benin has appealed for international assistance to mitigate piracy against commercial shipping in its territory, and has used equipment from donors effectively against such piracy. Pilferage has significantly dropped at the Port of Cotonou, though the port is still struggling with effective implementation of the International Ship and Port Facility Security (ISPS) Code. Projects included in Benin's $307 million Millennium Challenge Corporation (MCC) first compact (2006-11) were designed to increase investment and private sector activity by improving key institutional and physical infrastructure. The four projects focused on access to land, access to financial services, access to justice, and access to markets (including modernization of the port). The Port of Cotonou is a major contributor to Benin’s economy, with revenues projected to account for more than 40% of Benin’s national budget.

Benin will need further efforts to upgrade infrastructure, stem corruption, and expand access to foreign markets to achieve its potential. In September 2015, Benin signed a second MCC Compact for $375 million that entered into force in June 2017 and is designed to strengthen the national utility service provider, attract private sector investment, fund infrastructure investments in electricity generation and distribution, and develop off-grid electrification for poor and unserved households. As part of the Government of Benin’s action plan to spur growth, Benin passed public private partnership legislation in 2017 to attract more foreign investment, place more emphasis on tourism, facilitate the development of new food processing systems and agricultural products, encourage new information and communication technology, and establish Independent Power Producers. In April 2017, the IMF approved a three year $150.4 million Extended Credit Facility agreement to maintain debt sustainability and boost donor confidence.

talks continue between Benin and Togo on funding the Adjrala hydroelectric dam on the Mona River; Benin retains a border dispute with Burkina Faso near the town of Koualou; location of Benin-Niger-Nigeria tripoint is unresolved