The Road(s) to Sustainable Development: Policy Priorities for Industrial Ecosystems in Africa

This report was developed by the SIPA Capstone team in collaboration with ARISE Integrated Industrial Platforms Limited (ARISE IIP), focusing mainly on sustainable industrial development in Benin. Tasked with generating strategic insights to support the Glo-Djigbé Industrial Zone (GDIZ), the team conducted fieldwork in Cotonou City and engaged stakeholders across public, private, and community sectors.

The report addresses three interlinked challenges that hinder Benin’s industrial competitiveness: high energy costs, inefficiencies in agro-industrial value chains, and limited long-term economic diversification. First, the Capstone team recommended a targeted energy strategy that includes subsidized electricity tariffs, the development of a 50 MW solar PV plant through public-private partnerships, and the mobilization of green finance to reduce GDIZ's energy dependency and costs. Second, the team proposed interventions in the textile and agricultural sectors, such as centralized textile recycling hubs, minimum support price systems for cashews, and a community-based quota system to combat smuggling and strengthen domestic processing. Third, they outlined a long-term industrial upgrading strategy, leveraging the economic complexity framework to position Benin for higher-value exports and attract global investment. By integrating short-term actions with long-term structural reforms, the team’s recommendations aim to create a resilient, inclusive, and sustainable industrial ecosystem. The proposed roadmap seeks not only to enhance GDIZ’s competitiveness, but also to establish Benin as a regional hub for green and value-added manufacturing.