Niger, the world’s fourth largest uranium producer, was ranked 131 st out of 190 countries in the World Bank's Doing Business 2020 report, a qualitative leap of eleven (11) places compared to the previous year’s report. The reforms aimed at improving the business environment since 2010 have led to satisfactory results. In addition, the country has experienced robust economic growth in recent years. Despite the security challenge, Niger’s economic growth in 2019 is estimated at 5.9 percent, thanks in particular to the strengthening of agricultural production due to favorable weather conditions and investments in improving agricultural production. Economic activity benefited from the revival of extractive industries and the momentum of the construction sector in connection with the acceleration and completion of infrastructure for the African Union conference. However, due to the adverse economic impact of the COVID-19 pandemic, growth slowed to 3.6 percent in 2020.
Growth is expected to accelerate from 2021 onwards as a result of the implementation of the economic recovery plan and the continuation of large-scale projects included in the Economic and Social Development Plan (2017-2021 PDES), notably the oil export pipeline currently under construction. Niger's economic growth is expected to reach 5.5% in 2021 and 7.1% in 2022.
THE PRIMARY SECTOR: THE ENGINE OF THE NIGERIEN ECONOMY
The primary sector, mainly composed of agriculture, livestock, forestry, hunting and fishing, is the main engine of economic growth in Niger. It recorded an increase of 8.3% and accounted for 36.4% of GDP in 2020. It is estimated to have contributed 2.7 percentage points to the country's economic growth in 2020, compared with 1.2 points in 2019. The investments made since 2011, under the I3N (Nigeriens feed Nigeriens) plan, are gradually reducing the dependence of agriculture on rainfall by strengthening the agricultural structure. Thus, since 2014, agricultural production has not declined significantly, following an upward trend different from previous years.
The secondary sector is dominated by the extractive industries, especially mining production with gold, uranium, and oil production, which began in 2011. It grew by 1.9% and accounted for 20.5% of GDP in 2020 against 18.5% in 2019. The contribution to growth of the secondary sector is estimated at 0.4 percentage points in 2020 after 1.9 percentage points a year earlier. The strengthening of secondary sector growth is attributed to extractive industry activities and infrastructure construction activities carried out in preparation for the AU summit in 2019. The contribution of this sector to GDP formation is expected to increase considerably by 2023 due to the construction of the pipeline between Niger and Benin for the export of Nigerien crude oil.
The tertiary sector, which is composed of service activities, suffered the adverse consequences of the health crisis in 2020, particularly with the closure of land and air borders, theatres and the implementation of restrictive measures for trade and
transport. As a result, the value added of the tertiary sector declined slightly in 2020 (-0.1%) after an increase of 5.8% in 2019. The tertiary sector accounted for 37.9% of GDP in 2020.
ECONOMIC OUTLOOK AND DEVELOPMENT PLAN FOR NIGER
Because of its commitment to reforms related to the business environment, Niger was ranked fourth in the WAEMU area in the World Bank’s Doing Business 2020 report. Indeed, since 2010, the country's attention has been focused on the following major reforms: improving electricity supply conditions, building permits, tax facilitation, obtaining loans and protecting minority investors in companies. These reforms are in line with the main objectives of the ESDP. For this reason, Niger proposed the “Nigeriens Feed Nigeriens” (I3N) initiative, which has been implemented, and has led to an immediate and sustainable increase in the country’s food security. This initiative is accompanied by improved management of natural and environmental resources. In 2017, the country adopted a National Policy on Environment and Sustainable
Development, which updated previous sustainable land and biodiversity management, integrated water resources management (IWRM), climate change impact adaptation and mitigation, and renewable energy promotion. In addition, infrastructure such as the Kandadji dam is being built to develop agricultural activities through irrigation and to
develop electricity generation.
Niger has finally initiated reforms to improve the business environment. In 2018, the country was ranked among the top ten reforming countries in the World Bank’s Doing Business report. To promote business development, since 2016, Niger has taken measures related to the development of an action plan for the reform of import and export procedures and the adoption of an action plan for the improvement of Doing Business ranking indicators.
For a more complete view of the Nigerien economy and investment prospects, download Niger’s information note available here.
Source: Niger’s Information Note – August 2021.