Project: Benin Port Modernization Evaluation-Based CBA

Boosting Trade, Reducing Costs: How MCC’s Investment Improved Benin’s Gateway to West Africa

Limestone Analytics’ in-depth analysis shows strong returns from MCC’s $169M port modernization in Benin.

To help spur economic growth and regional trade, the Millennium Challenge Corporation (MCC) partnered with the Government of Benin through a five-year, $307 million Compact. Nearly $169 million was invested in the Access to Markets Project, aimed at modernizing operations at the Port of Cotonou, a key gateway for trade in West Africa.

To assess the long-term economic value of this investment, MCC commissioned Limestone Analytics to conduct an evaluation-based cost-benefit analysis (ECBA). The study found a 17.2% economic rate of return (ERR)—a significant increase over the 12.8% projected at project closeout and above MCC’s 10% benchmark for success.

The ECBA built on key findings from an independent evaluation of the Access to Markets Project, which found that:

• Reduced port congestion led to major time and cost savings for shippers and consumers.
• Increased trade capacity generated substantial new tax revenues and port fees.
• Residual infrastructure value and private sector contributions added to long-term sustainability.
• Over 37,000 direct beneficiaries were impacted, with the broader population enjoying lower prices on imported goods.

Limestone’s rigorous analysis incorporated updated traffic, cost, and benefit data, along with methodological refinements, to capture the project’s real economic gains.

This analysis shows that strategic investments in trade infrastructure, backed by evidence and robust evaluation, can deliver measurable gains in efficiency, revenue, and regional economic resilience.

Link to MCC publication page: https://mcc.icpsr.umich.edu/evaluations/index.php/catalog/26652