Cotonou's Klondike: African traders and second-hand car markets in Bénin

This article addresses the theme of entrepreneurship in Africa by focusing on second-hand car markets in Cotonou, Bénin. At first glance this booming business seems to confirm neo-liberal and institutional models of entrepreneurship, in which entrepreneurial behaviour constitutes rational calculation in a situation of economic opportunity. The universe in which African car traders operate, however, is characterised by significant capital scarcity, dramatic losses and widespread bankruptcies. The article argues that viewing entrepreneurs as economic calculators is not the proper way to understand the Cotonou car trade. Based on case analysis of a Béninese car trader, it shows that the outcome of car trading in Cotonou is determined by the manipulation of social contacts, characterised by self-interest and distrust among business partners. Analogous to the Klondike gold rush, it appears that the car trader's engagement with the trade is to a large extent motivated by the dream of making a fortune. Thus, even though entrepreneurial failure is widespread among African car traders, most of them remain convinced that car trading can yield significant profits.