The MCC-Benin Regional Transport Compact seeks to bolster Benin’s regional trade, strengthen supply chains, and accelerate efficiency for American businesses and consumers by rehabilitating a major trade corridor in the country and supporting policy and institutional reforms to improve road safety and maintenance.
The transport corridor between the Port of Cotonou in Benin and the capital city of Niamey, Niger, has historically been one of the busiest highways in West Africa, with up to 1,000 vehicles crossing the border per day. With projected revenues of more than 40% of Benin’s national budget, the Port of Cotonou is a major contributor to the country’s economy. By upgrading Benin’s internal transport infrastructure and expanding access to foreign markets, the MCC-Benin Regional Transport Compact will support Benin to achieve its ambitious economic growth goals.
Strengthening regional trade is a top priority for the Government of Benin. The MCC-Benin Regional Transport Compact is the first of its kind for MCC, building on previous compacts with Benin that focused on expanding the capacity of the Port of Cotonou and the nation’s power sector. The MCC-Benin Regional Transport Compact is investing more than $290 million — with a $202 million grant from the American people and $88.8 million from the Government of Benin.
The compact includes two projects: the Corridor Infrastructure Project and the Efficient Corridor Operations Project.
Financials
Financials as of June 30, 2025
Program Budget
Milestones
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Signed:
December 14, 2022 -
Entry Into Force:
July 17, 2025
Program Projects
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$143,313,000
Project Total Amount -
$0
Project Amount Committed -
$0
Project Amount Expended
The Corridor Infrastructure Project will rehabilitate and widen 39 kilometers of roadway between the cities of Setto and Dassa-Zoumé. This will facilitate faster and more efficient transit of goods, including key agricultural commodities such as high-value horticulture crops, and cashews headed to the country’s new industrial zone for processing or the Port of Cotonou for export. In addition, this project will support road maintenance reforms through the application of state-of-the-art technology to enable Benin to better plan, budget, fund, contract, and oversee performance-based road maintenance contracts.
Projected Long Term Results at the Time of Program Signing
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1,240,000
Estimated Beneficiaries -
17%
Estimated Economic Rate of Return
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$26,000,000
Project Total Amount -
$0
Project Amount Committed -
$0
Project Amount Expended
This project is designed to reduce transportation costs along the transport corridor running south to north through Benin including reduction of vehicle operating costs, time-related costs, and road-related accidents and injuries. The Project will undertake a series of national policy reforms to conduct fleet inspections, certification of drivers, and axle load management controls. Road safety reforms will complement international best practices in road safety design features with public outreach campaigns to improve traffic flows, safe driving behaviors and pedestrian movement among communities alongside roads.