Agro-processing units and local development in the Collines Department of Benin: assessment of impacts on employment, incomes, and the local economy

Agro-food processing constitutes an essential lever for adding value to agricultural production and stimulating local economies in rural areas. This study analyzes the socio-economic effects of agro-food processing units on local development in the Collines Department of Benin, using data from 204 processing units selected through snowball sampling. A composite Local Economic Effect (LEE) index, built from three self-reported indicators local employment contribution, perceived income effect, and multiplier effects assessed the economic benefits generated by these units. Analysis combined descriptive statistics with a heteroskedasticity-robust multiple regression to identify the determinants of local economic effects. Processing units contribute significantly to direct and indirect employment and to local economic exchanges: each unit generates on average 4.57 direct and 4.75 indirect jobs, though both employment and income distributions are highly right-skewed, indicating substantial heterogeneity. The local economic effect also varies markedly across communes, with Bantè showing a distinctly lower level than the rest of the department. Direct and indirect job creation, access to the national market, and product diversification are positively and significantly associated with the local economic effect, while access to the regional market is associated with a lower effect and unit income shows no significant association once heteroskedasticity is accounted for. These findings confirm the strategic role of agro-food processing in promoting territorial development, while underscoring that benefits are unevenly distributed across units and localities. The study recommends public policies improving market access, financing, and technical support for processors, with particular attention to less-integrated territories.