History Country Brief last updated March 2008 
Niger is a vast landlocked country with an estimated population of 14 million, the majority of whom live along a narrow band of arable land on the country’s southern border. The economy is dominated by agricultural activity, including rearing livestock, mining (uranium), and informal trading activities. The primary sector, which accounted for about 46.7 percent of GDP in 2006, is dominated by rainfed agriculture, while livestock production accounts for about a third of the value added in the sector. In 2007 Niger was ranked 174 out of 177 countries on the UNDP's Human Development Index. Sixty-one percent of Niger’s population lives in extreme poverty on less than a dollar a day and the average per capita income is estimated at US$280 in 2006. Social indicators are low, with an infant mortality rate of 81 per 1,000 live births, life expectancy of 55.8 years, a literacy rate of 28.7 percent in 2005, and gross primary school enrollment of 54 percent in 2006. GDP growth has been highly volatile but low on average, outpaced by the population growth rate, estimated at 3.4 percent in 2006. GDP is estimated at 5.6 percent in 2007 and 5.2 percent in 2006, after reaching 7.4 percent in 2005, reflecting the strong performance of the agriculture sector (about 20 percent growth in real terms) following its recovery from the 2004 drought (GDP growth of -0.8 percent this year). In 2005, the population faced a severe food crisis following a 12 percent decline in agricultural production due to the 2004 drought. The government took measures to ensure the replenishment of the grain reserve in 2006 and is working to find a sustainable solution to this structural problem in Niger with the support of the donor community. A Donor conference on Food Security, fight against desertification and large scale irrigation development was held in Doha (supported by the Organization of the Islamic Conference) on June 12-13, 2007. Donors attending the meeting announced their intentions to donate US$368 million (exceeding the US$300 million expected) to finance the three programs. In October 2007, following the adoption of Niger’s second Poverty Reduction Strategy Paper, a Round Table for its financing was held in Brussels and donors pledged US$4 billions equivalent to support its implementation. Finally a donors’ roundtable for the financing of the Kandadji dam program took place in Jeddah on November 28, 2007 and raised US$236 million in pledges. Economic and political context The country has enjoyed social and political stability since it successfully transitioned to a democratically elected government in 1999 under the leadership of President Mamadou Tandja, the leader of the National Movement for a Developing Society (Mouvement National pour la Société de Développement, MNSD). The government has been ruled by a two-party coalition, consisting of MNSD and CDS (Convention Démocratique et Sociale). Tandja was reelected in December 2004 with a strengthened coalition of six parties out of the eight represented in the Parliament. In June 2007, former Prime Minister, Hama Amadou was dismissed following vote of no-confidence by Parliament, after having served more than seven years in office. A new Prime Minister, Seyni Oumarou, was appointed on June 3, 2007. Under the new government, key ministers (Finance, internal affairs and Foreign Affairs) retained their positions. Since February 2007, the social situation in the desertic northern region has deteriorated with the violent uprising led by Tuareg rebels who claim to be marginalized and want to benefit from the uranium resources being extracted in the region (the region contains the largest unranium deposits in the world). The government has declared the northern region a military zone in August 2007 and February 2008. The conflict is jeopardizing the economy of the region by dampening tourism (the season runs from October to March), which is the main source of revenue for most households that live off handicraft earnings. From 2005-2007, Niger made significant progress in strengthening its economy with an average growth rate of 6.0 percent. This represents a recovery from 2004, when the economy contracted due to drought, a locust plague and higher energy prices. In April 2004, Niger reached the HIPC Completion Point and received debt relief from IDA, including topping-up, equivalent to US$142 million. The country also qualified for US$300 million in debt relief from the Multilateral Debt Relief Initiative (MDRI) which is freeing up an additional US$30 million in resources annually for the 10 years. The Government’s Second Poverty Reduction Strategy Paper (PRSP), which was approved by Decree on October 10, 2007, proposes that Niger will have to maintain real GDP growth rate of 7 percent annually to reach the MDGs. A baseline scenario for growth is 4.2 percent. In 2006, the GDP growth rate rose to an estimated 5.2 percent reflecting strong agricultural production and continued robust growth in non-agricultural sectors (uranium and telecommunications). A new three-year PRGF arrangement with the IMF was endorsed by the Fund’s Board in January 2005 for a total amount of US$40 million, and five reviews of the program were successfully completed. The sixth review took place in March 2008 and should be discussed at IMF Board in May 2008 together with a new PRGF-supported program with Niger. Donor coordination France , Germany, Belgium, Canada, Japan, China, the European Union, the African Development Bank, the World Bank and the IMF are key development partners in Niger. International and local nongovernmental organizations (NGOs) have an active presence in the country. Several UN agencies are active in relief activities, such as famine and refugee programs. The UNDP and the World Bank play an active role in donor coordination in Niger, and the government has also taken a more active role in the context of the PRSP process. The government revised the PRSP with strong support of donor’s community. It was adopted in October 2007 by the government and endorsed by the community of donors at a PRSP II financing Round Table which was held in Brussels (October 25 to 26, 2007). Bank and Fund Staff have prepared a Joint Staff Assessment Note (JSAN) on the PRSP II which will be discussed on April 29, 2008 at the Bank Board and on May 16, 2008 at the IMF Board. The World Bank Group's role As of end February 2008, the World Bank had approved 72 projects for Niger totaling about US$1.5 billion. The commitment value of eleven ongoing IDA-financed operations is about US$314 million equivalent, with an undisbursed balance of about US$128 million. The current portfolio consists of projects supporting investments in (a) water infrastructure; (b) rural development, promotion of agricultural exports, and irrigation; (c) HIV/AIDS; (d) a nation-wide community action program to support development programs at the community level; (e) education for improving access to and quality of basic education; (f) reforming and restructuring the financial sector; (g) health sector and institutional strengthening; and (h) natural disaster management. Policy reforms to support improved public expenditure management and remove bottlenecks are being undertaken under a series of development policy lending operations, the first of which was approved in FY06 (Rural and Social Sector Policy Reform) and the second one approved by the Board on June 19, 2007. The first tranche of US$25 million was disbursed in August 2007. A new Country Assistance Strategy (CAS) is being prepared for approval in FY08. International Finance Corporation (IFC) has no portfolio or upcoming projects in Niger. IFC is considering technical assistance support for the implementation of certain reforms identified by the World Bank Investment Climate Assessment. In addition, IFC plans to explore providing technical assistance and investment in viable private sector companies, including recently privatized enterprises. IFC’s operations in Niger are covered from Accra, Ghana, where IFC’s Country Manager is based. Even though Niger is not a World Bank Institute (WBI) Focus Country, it participates actively in WBI programs by making good use of distance learning facilities. Most of the 200-300 Niger nationals who take part in WBI events each year are reached through videoconferencing and Web-based courses. Education and Health activities are the most popular. While Niger signed the MIGA Convention on April 11, 1994, it has still not completed all the requirements for membership. Therefore, the Agency cannot underwrite any investments in support of the country. Contacts Mr. Madani M. Tall
Country Director (based in Dakar, Senegal)
Tel: (221) 33 849 50 10
Fax: (221) 33 849 50 27
E-MAIL: mtall@worldbank.org Ms. Joelle Dehasse
Acting Country Program Coordinator/ Sr. Operations Officer
Tel: (202) 458 5437
Fax: (202) 473 5450
E-MAIL: jdehasse@worldbank.org Mr. Ousmane Diagana
Country Manager (based in Niamey, Niger)
Tel: (227) 20 73 59 29
Fax: (227) 20 73 55 06
E-MAIL: odiagana@worldbank.org Mr. Amadou Ibrahim
Sr. Economist for Niger (based in Niamey, Niger)
Tel: (227) 20 73 59 29
Fax: (227) 20 73 55 06
E-MAIL: iamadou@worldbank.org Ms. Barbara Weber
Sr. Operations Officer
Tel: (202) 473 7893
Fax: (202) 473 5450
E-MAIL: bweber@worldbank.org |
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