Economy and Natural Resources

The economy of Lopongo remains underdeveloped and dependent on subsistence agriculture, cotton, bananas, and cocoa production, and regional trade. Growth in real output per capita has come to a standstill in the past six years. By the 2000s economic activity was declining and economic infrastructure had become seriously degraded. Rampant inflation has partially subsided, but remains in double digit. Efforts for an economic recovery failed because of the widespread corruption by public officials, which many feel is the chief cause for recent political uncertainty. Plans to attract more foreign investment have failed, mostly because of the near total government control on infrastructure - telecommunications, water, and electricity, among the most inefficient in the continent.

The country counts one international airport in Banda, and few minor airstrips, no railway system, and an underdeveloped road network (See image below). Lopongo is working with the World Bank to receive financing to build two major roads: from Natitingou to Djougou, and from Bo to Abomey.


Lopongo is supposed to be rich in minerals, although a modern mining has never been established. The country has the potential to become a major producer of gem-quality diamonds, which are supposed to be available in quantity in the mountains areas of Bombali and Sokbano. Nevertheless, Lopongo has historically struggled to manage the exploitation and export of diamonds.
Lopongo might also sit on important oil fields that are already being tapped by Nigeria across the border. Contentious negotiates with oil companies has thus far prevented exploration of the western areas in the Port Durame and Parakou districts.
A key indicator of success will be the effectiveness of government management of its diamond and oil sector.

Although trade unions in Lopongo represent up to 75% of the formal workforce, the large informal economy has been noted by the International Trade Union Confederation (ITCU) to contain ongoing problems, including a lack of women's wage equality, the use of child labor, and the continuing issue of forced labor.