In Paris, Niger convinces its partners to finance its Economic and Social Development Plan

To not miss any African news, subscribe to the newsletter of the “World Africa” from this link. Every Saturday at 6 a.m., find a week of news and debates covered by the editorial staff of the “World Africa”.

Presidents Emmanuel Macron (France) and Mohamed Bazoum (Niger), at the Elysée Palace, in Paris, on December 7, 2022.

31.4 billion euros, twice as much as the sum initially hoped for. The results of the fundraising organized on Monday 5 and Tuesday 6 December in Paris exceeded Niger’s expectations. Private investors and the technical and financial partners of this Sahelian country – in other words the international financial institutions, the United Nations agencies, the European Union and other development banks – have undertaken to support the Economic and Social Development Plan ( PDES) designed by Niamey for the years 2022-2026, a sign of the interest shown in this fragile country, but relatively stable politically and economically, in a region swept by coups and jihadist violence.

Read also: Article reserved for our subscribers Mohamed Bazoum, President of Niger: facing the jihadists, “the remote control is in our hands, not in those of France”

This five-year plan aims to stimulate economic growth expected to reach an average annual rate of 9.3% over this period (compared to an average of 5.4% between 2017 and 2020). Inflation would be contained to less than 3%, as would the overall budget deficit. One of the priority objectives is to reduce the poverty rate from 43% in 2022 to 35% in 2026. “The implementation of the previous plan (2017-2021) took place in a difficult security and health environment, but it has made it possible to make progress”notes Sergio Pimenta, vice-president of the International Finance Corporation (IFC, a subsidiary of the World Bank) for Africa. “There is a real capacity for promising investments”he adds, particularly in telecoms, electrical energy and infrastructure.

In addition to the contribution of its partners, the State of Niger will add 13.35 billion euros of its own resources to finance the PDES. “This effort first reflects the responsibility of the State”emphasizes Abdou Rabiou, Minister of Planning. The mobilization of this extremely substantial sum (it is equivalent to the GDP of 2021) would be possible “thanks to the development of oil production and exports”explains Hassoumi Massaoudou, Minister of Foreign Affairs.

Leap Forward

Niger plans to pump from its basement 110,000 barrels per day from 2023, against 20,000 currently. This leap forward stems from the forthcoming commissioning of a 2,000 km oil pipeline to the Benin coast, which will make it possible to sell this additional production that the limited national refining capacities cannot absorb. Oil revenues could represent “up to half of the country’s tax revenue and a quarter of the GDP”says the government. “The State will then have a budgetary space allowing it to take charge in a much more assertive way of financing development and social expenditure”, argues the minister of planning.

According to the Minister of Planning, “to date, all foreign investors present in Niger in the oil field are Chinese”

This would only be the beginning of the process, given the oil and gas potential of Niger, where, according to President Mohamed Bazoum, the reserves “are estimated at more than 1,200 million barrels and more than 17 billion cubic meters respectively”. The Head of State took care to recall that “several blocks are still available”. “To date, all foreign investors present in Niger in this area are Chinese”said Abdou Rabiou, while adding: “We would like to see the interest of the French. »

Read also: In Niger, the largest oil pipeline in Africa takes shape

It is moreover with the aim of attracting French private partners that the Nigerien president went on Tuesday morning to the Mouvement des entreprises de France (Medef). Mohamed Bazoum called on the thirty or so big bosses present at the headquarters of the organization to “enhancing the enormous investment potential that abounds in Niger”. These opportunities relate to mining, oil and gas, economic infrastructure (airports, roads, energy, dry ports) and agro-industry, through the processing and industrial development of agro-pastoral products.

“A frequentable country”

A number of companies have reportedly responded beyond Nigerien expectations. Declarations of intent, prior to the conclusion of agreements, have thus been signed for “a total amount of 8.5 billion euros” (against 6 billion expected), welcome the Nigerien authorities in the press release published at the end of these two days of round table for the financing of the PDES.

To attract businesses, Niger highlights its geostrategic location. “An advantageous position between West Africa and the Maghreb, giving access to a market of 550 million consumers”according to the description of President Bazoum. “Niger is a friendly country that stands out from its neighbours”underlines a very committed development actor in the region.

Read also: In Niger, at least eleven civilians killed by suspected jihadists near the border with Mali

Because the threats are at the gates of the country, bordered in particular by Chad, Libya, Nigeria, Mali and Burkina Faso, which constitute both potential economic markets and sources of destabilization. “The number of violent actions carried out in Niger by jihadist armed groups linked to Al-Qaeda or the Islamic State has decreased this year, but there are still some. The situation remains very tense and may discourage some investors, especially SMEs”adds our source.

source site-30