Investing in Niger

investing in niger

2012 Your conference host

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Platinum Sponsor Platinum Sponsor Foreword

Foreword Foreword by Muhammadu Dikko Ladan Honorary Consul of Niger in the UK

hile How best to transmit the business case? is working at speed to ensure that its it is The answer lies with those who have peoples are shielded and cared for Wove r already invested and those who continue against the worst ravages of drought. half a to expand their business and re-invest The issue of security that faces much century since in Niger. We are delighted to welcome of the region has been and is being, independence, today organisations such as Global confronted with a degree of measure and Niger today Atomic Fuels, NES, Goviex, SEMAFO and conciliation uncommon to the region by remains a Paladin Resources all of whom will tell a government committed to protecting relatively you why it makes sense to invest in Niger its peoples and its visitors. Mature unknown country and why it makes sense to invest now. fiscal management, often a challenge to to the English speaking world. With the incoming administrations, is endorsed election of our current administration all Of course, the private sector needs by multilaterals re-enforcing their that is set to change. The new government to engage with a government which commitment to the country. The presence is ready to engage with Anglophone understands its value and will encourage it today of the World Bank and ECOWAS markets for trade and investment which to thrive. This administration understands pay testament to this resolution. will then allow it to re-invest in the social that relationship and fully appreciates fabric of this vast country. that a flourishing private sector leads to Today marks an historic day in the job creation and economic prosperity development of Niger, and I would like Today’s historic investment summit and contributes to societal growth. to thank all of you who have attended, is testament to this new approach. On a recent visit to the country I met particularly those who have come from His Excellency President Issoufou with a number of government officials North America, Australia, Europe and Mahamadou leads a delegation of eight whose instinctive reaction to a potential Africa to be here; to our sponsors who cabinet ministers, many parastatals and visit from a would-be investor was to have supported us in our planning over the Nigerien businesses, for the purpose dedicate an official to them so that they past six months; to Developing Markets of demonstrating to the international might better understand the investment Associates who have assisted myself and community the vast investment potential potential, issue a visa on arrival in order to the Consulate in preparing for today; to the of the country. better help their travel plans, and to invite US Embassy and State Department who them to meet with existing investors in have been unwavering in their support; and The time to invest is now. Having travelled order to reassure them of any investment most of all to the UK Government and extensively through Africa, the vibrance of concerns they might have. In short, its Foreign Office not only for lending us the foreign direct investment community a government, from the top down, their prized rooms, but for half a year of in our capital Niamey is reminiscent of which is looking instinctively at embracing commitment, faith, and a guiding hand in all the anticipation of post-Apartheid South an investors’ skills and intelligence for the that we have achieved today through our Africa, the energy of Ghana over the past betterment of the country. long and meticulous planning. decade and the excitement of today’s emerging Kenya. Indeed, I would venture Despite all of the enthusiasm for the It falls on me lastly to invite you and to say that nowhere else in the sub-region measured commercial expansion that welcome you to Niger, this enormous, is there such an extraordinary sense of the government seeks, challenges of extraordinary and under-served country business optimism in the second decade course remain – challenges that this with the potential to become your of the new millennia, reflected in near-full administration recognises and is facing long-term partner in sustainable hotels, a burgeoning restaurant industry with a maturity beyond its years. investment in Africa. and expanding business community. The impending Sahel food crisis is one such challenge, and in the margins of Muhammadu Dikko Ladan Herein lies our challenge. How best to today’s event and in meetings prior to and Honorary Consul of Niger further communicate the opportunity? proceeding the Forum, the government in the UK

2012 INVESTING IN NIGER 1 Foreword Foreword by Atam Sandhu, Chief Executive Developing Markets Associates

o r has at last enabled the country to look anyone forward with anticipation to a positive Fvisiting future. In this desire it is also assisted by Niamey, Niger’s the genuine goodwill on the part of the capital, for the international community. Niger is now first time, the able to use its undoubted resources to reality seems make huge strides in the progress of both much removed its economy and its society over the next from the images few years. often portrayed in the media. On my recent visit a Today’s forum provides a unique few weeks ago I found every hotel full, opportunity to connect with the the city buzzing with commerce, and Government of Niger and potential roads bursting with traffic. The overall Nigerien partners. I hope that the impression from both the city and its proceedings will be informative and people was of a nation brimming with update your knowledge of the country energy. There is an immense amount from a business perspective. More than of work underway to develop Niger, this though, I hope that knowledge will especially in the infrastructure sector. trigger a interest to further explore in The presence of organisations and detail the investment opportunities now foreign companies engaged in projects in available in Niger. Today’s presentations the country was impressive and visible at and the conference materials will be every turn. available to download from DMA’s website www.developingmarkets.com That same energy and sense of in the days following the conference. purpose was present among the many Additionally, DMA, the UK Foreign and government ministers I met, all of whom Commonwealth Office, the Consulate of were passionate about the importance Niger and the US Embassy will also be of foreign investment to their country’s delighted to assist you with any follow up future development and the government’s activities with either the public or private active drive to encourage it further. sectors in Niger. His Excellency, President Mahamadou Issoufou and the ministers addressing Lastly it remains for me to thank you for you today will discuss the progress taking the time to attend today’s event. being made, the funding gaps that need There is much business to be done with to be addressed and the investment this newly emerging republic, with its opportunities that exist. future exciting for both its people and its partners. Niger is a country that now deserves our attention. Having suffered greatly from neglect and bad governance in the past and with many of its people still among Atam Sandhu the poorest in Africa, the coming of peace Chief Executive and the election of a popular government Developing Markets Associates

2 Investing In NIGER 2012 Contents

Contents 04 Economic Overview 10 Agriculture 13 ENERGY AND MINING 16 Infrastructure 19 POLITICAL HISTORY 20 Images of Niger 22 Niger Consulate Uk 23 MAP 24 NOTES 25 PERSOIL

Publisher: Chris Gerrard Contributors: Jonathan Levack, Gary Ginsberg, Robyn Kingston Art Director: Steven Jones Conference Team: Deanne Lintorn, Frazer Lang, Rebecca Isaacs, Alison Hamilton Conference Directors: Atam Sandhu, Leon Isaacs, Roger Martin Correspondence Developing Markets Associates Ltd (DMA), 150 Tooley Street, London, SE1 2TU email: [email protected] | web: www.developingmarkets.com | www.sendmoneypacific.org DMA acknowledge the assistance of all the individuals and organisations who have contributed to this publication. The views expressed herein are the opinions of the authors, and do not necessarily represent the Government of Niger or DMA. All rights reserved. No part of this publication may be reproduced or transmitted in any form without the written permission of the publisher. Published by Developing Markets Associates Ltd (DMA) Printed by Woodrow Press Picture credits: istockphoto.com, NES, Niger Consulate UK

2012 INVESTING IN NIGER 3 Economic Overview

In response to such challenges, the government is embarking on an ambitious Economic Overview development programme that aims to by Jonathan Levack address many of the structural issues that have long affected this country of nearly 16 million people. Much of this plan is hile many major global Despite recent success and an predicated on a drive to attract foreign economies continued their encouraging outlook, Niger remains a direct investment (FDI). A period of Wlaboured recovery from the low income country. Landlocked and relative stability and a genuine desire to global financial crisis, 2011 was a relatively vulnerable to an increasingly volatile reform should provide the platform for good year for Niger. Consolidating real climate, 40% of the population live on less investment in the country, particularly in – GDP growth of 8% in 2010, 2011 saw than US$1.25 a day and 80% of Nigeriens but not limited to – the country’s mining democracy restored, production start at are employed in subsistence agriculture. and extraction sectors. Such investment will the Zinder oil refinery, operations begin Niger has also suffered from sporadic enable the country to achieve its aims of at the Azerlik uranium mine and real growth, often linked to the level of rainfall, boosting growth and thus reducing poverty. GDP growth reach a respectable 2.5%. with expansion interspersed with bouts And the medium term prospects look of recession – most recently in 2009. A Period of positive too; the International Monetary Another drought is expected in the wider Relative Stability Fund (IMF) predicts growth could hit Sahel region in 2012, which will impact on a highly impressive 14.2% in 2012. Niger with agricultural output expected to After years of political turmoil, Niger is With new investments in uranium and fall and food shortages likely. The country seemingly entering a period of genuine infrastructure set to come on stream is also reliant on both international democratic reform. Just 14 months after a in the foreseeable future as well as an assistance and remittances, both of which military coup that ousted President Tandja improving business climate, Niger’s future carry a degree of unpredictability – the and quashed his attempts to manipulate looks full of promise. Indeed, future real ousting of Qaddafi, for example, and the the then constitution to maintain his 10- GDP growth is predicted to fluctuate related crisis hit Niger as thousands of year grip on power, April 2011 saw the between 6.6% and 7.3% per annum from Nigerien workers based in Libya were left return of democracy to Niger in elections 2013 until at least 2016. jobless and money transfers dried up. widely heralded as free and fair. During this

4 Investing In NIGER 2012 Economic Overview process 90% of the population endorsed the new constitution and a clear majority of 58% voted in as president Mahamadou Issoufou of the Nigerien Party for Democracy and Socialism. Niger’s newly elected government has underlined its commitment to improving governance, reform, attracting investment and pursuing national reconciliation. Indeed, in a clear effort to promote relations between Niger’s constituent communities, President Mahamadou Issoufou appointed a native Tuareg leader, Brigi Rafini, as Prime Minister. Political stability and the restoration of democracy have also encouraged international donor organisations to return to the country, many of which had reduced, if not completely withdrawn, assistance both before and during the military intervention.

Niger also benefits from relative stability in its monetary policy. As a member of the West African Economic and Monetary Union (WAEMU), Niger cedes responsibility for monetary policy and banking regulation to the Central Bank of West African States (BCEAO). BCEAO is responsible for setting interest rates for the eight country zone that also includes Niger, Benin, the Ivory Coast and Senegal. As a result, inflation is not something Niger generally suffers from; the IMF predicts that With new investments in uranium and inflation will continue to be relatively stable, infrastructure set to come on stream in the fluctuating between the reasonably narrow foreseeable future as well as an improving band of 2 to 4.5% over the next five years. Membership of WAEMU means the business climate, Niger’s future looks full country also shares a common currency, of promise the CFA Franc, which is pegged to the Euro.

Membership of WAEMU also shapes Niger’s fiscal policy. WAEMU guidelines Macroeconomic stability should be spending has seen the country’s debt require fiscal revenues to account for at furthered improved by the IMF’s decision levels begin to rise again, albeit slowly. least 17% of GDP, something that Niger to approve a new three-year US$120mn has struggled to attain. Indeed, Niger’s extended credit facility arrangement Benefiting from biggest fiscal challenge is broadening its with Niger. Signed in March 2012, the Natural Resource tax base; with the economy dominated agreement included the initial transfer Wealth by the informal and agricultural sectors, of nearly 15% of the funds. According the government’s ability to raise revenue to the IMF’s Deputy Managing Director, The mining and extraction sector from taxation has been somewhat Naoyuki Shinohara, the agreement “aims dominates industry in Niger. With global limited. Niger’s authorities have strived to at addressing the challenges ahead, demand for energy and commodities on address this and have had some success maintaining macroeconomic stability a general upward trend, interest in Niger’s in this regard; according to the African and increasing resilience to shocks.” The natural resource wealth has also been on Economic Outlook fiscal revenue is proposed IMF programme also targets the rise. The country’s modest oil reserves thought to have increased by 8% in 2010 strengthening Niger’s debt management. are no different; 2011 saw Niger join the and is expected to jump by a further 8% Like many previously indebted nations, league of petroleum producing states. Oil in 2011. Domestic fiscal revenues now far Niger has also benefited from a major exploration began way back in the 1950s, exceed those generated from external reduction in its international debt under but commercial production only began last sources, namely customs duty. Despite the Highly Indebted Poor Countries year following a US$5bn investment – the efforts to modernise the collection of (HIPC) Initiative. Having peaked at nearly largest in the country’s history – from the fiscal revenue however, the IMF predicts 90% of GDP in the early 2000s, Niger’s China National Petroleum Corporation that Niger’s fiscal balance will remain total external debt now stands at less (CNPC). CNPC’s investment not only negative over the course of the next five than 20% of GDP. However, some have financed production at the country’s years, peaking at -4.7% of GDP in 2014. raised concerns that new infrastructure Agadem block, estimated to be home

2012 INVESTING IN NIGER 5 Niger’s bourgeoning oil industry will also lessen the country’s dependence on its most valuable export, uranium. Having first mined uranium commercially in 1971, the country is currently the world’s fifth largest producer of uranium, providing for 7.5% of global output according to the World Nuclear Association. So important is the industry to Niger that it currently accounts for nearly two thirds of export earnings. Given the nuclear energy renaissance that is underway the world over, demand for this precious commodity is likely to remain robust. Indeed there is strong commercial and governmental support for an expansion of uranium mining in Niger. Through an investment of US$1.5bn, French giant Areva intends to develop one of the largest single deposits of uranium in the world at Imouranen in the north of the country. Larger than any other in Africa, the mine has the potential to produce up to 5,000 tons of uranium per year and has a life expectancy of three and a half decades. Currently scheduled to be in operation by 2014, the mine could see Niger leapfrog its way to second place on the list of global uranium producers. Financially Imouranen is lucrative too; in return for the rights to develop the mine, Niger will receive a recently renegotiated US$145 per kilo of extracted uranium.

Developments in the country’s uranium industry are not just limited to Imouranen. China’s SinoU (a subsidiary of the China National Nuclear Corporation) is the major shareholder in a joint venture at the recently opened Azerlik mine. The mine is currently producing 700 tons a year but is slated to increase output to 2,500 tons per annum within four years. The recent Fukushima nuclear crisis has seemingly not impacted on demand for Niger’s newly elected government has Niger’s uranium; in April 2012 Toshiba underlined its commitment to improving announced that the company secured the rights to a significant proportion of governance, reform, attracting investment uranium at the planned Madaoulea mine. and pursuing national reconciliation Expected online by 2017, the mine will have the capacity to produce up to 1,000 tons of uranium per annum. Indeed, to 650 million barrels of oil, but it also of approximately 7,000 bpd, output from having previously been dominated by provided for a 462 kilometre pipeline to the refinery will significantly reduce the the French, Niger is benefiting from the bring oil to a new refinery near Zinder. country’s reliance on Nigeria for imported opening up of its uranium industry to Of the estimated daily output at Agadem energy. Surplus production will also be mining and exploration companies from of 100,000 barrels of oil, the new facility at sold to the region under the conditions elsewhere. In 2009 alone, companies Zinder has the capacity to refine 20,000 of the production sharing agreement. from Australia, Canada, South Africa, barrels of oil per day (bpd) (equivalent And, the project has the added benefit China as well as France explored for to an annual production capacity of one of creating an estimated 4,500 jobs. Such uranium in the former French colony. million tons). It also has the facilities to use success has generated interest in further So plentiful are Niger’s uranium resources associated gas from the Agadem block to oil and gas potential in Niger with an that the government have also touted the produce LPG (Liquefied Petroleum Gas). additional three blocks currently under idea of developing its own nuclear power Far in excess of current domestic needs exploration licence. facility in cooperation with its neighbours.

6 Investing In NIGER 2012 Economic Overview

According to government spokesperson, Marou Amadou, “If there is something we have to do, it is to have our own civilian nuclear reactor”.

While Niger’s mining and extraction sector is dominated by the oil and uranium industries, the country does have substantial deposits of gold, silver, copper, coal, iron, limestone and phosphates that are at various stages of being exploited. Opened in 2004, Samira Hill is the country’s only commercial gold mine, joint owned by Semafo of Canada and the government, it produces in the region of two tons a year but with scope for expansion. Production is expected to increase as the worldwide price for gold has skyrocketed and previous commitments at lower prices have been fulfilled. Coal is also mined ona commercial scale – up to 225,000 tons a year according to the African Economic Outlook – to generate electricity that fuels the demands of the uranium industry. But with total coal reserves estimated to be in the region of 13 to 14 million tons, there is potential for further commercially activity. Significant deposits of Niger’s other resources have been left unexploited, as they have been deemed not commercially viable as yet. However the new government is now seeking to attract foreign investment in the sector as part of its policy of diversification so that The FDI that Niger has been able to raise the country is less dependent on just one in the past has tended to flock towards the or two sources of income. country’s natural resource wealth, but more Recent steps to benefit from its resource recently Niger has also been successful in wealth will generate valuable income for one of the world’s poorest nations. attracting FDI outside of the mining and According to the IMF, oil and mining extraction sectors sector exports are projected to triple within five years, with total government revenue increasing by about 5% of of the Extractive Industries Transparency An Emerging GDP and exports as a proportion of Initiative – an event the IMF’s newly Investment GDP set to rise from 23.3% to 30.5%. appointed managing director Christine Destination But the production of oil in commercial Lagarde underlined in her speech to quantities and the further exploitation the Nigerien National Assembly in Despite its natural resource wealth, of the country’s vast uranium resources December 2011: “Niger’s adherence to years of instability has meant that have led to fears that Niger might the Extractive Industries Transparency traditionally Niger has found foreign fall victim to the resource curse or Initiative earlier this year is a major direct investment (FDI) difficult to attract. “Dutch Disease” that has afflicted milestone”. Indeed, the government But things look set to change. Following a number of sub-Saharan African is not only adamant that the process the restoration of democracy in 2011, countries. The government has be as transparent as possible but it is the new government is sincere in its expressed its intention to ensure the also keen to use income generated by desire to address both the macro and transparent management of its natural the country’s natural resources wisely, microeconomic environment to attract resources and the revenues accrued leveraging revenue to combat poverty foreign investment. The National Council from them. Niger’s new constitution and boost growth. The government’s of Private Investors (CNIP) will restart stipulates that all contracts related to ambitious development strategy intends its review of the country’s investment the exploration and exploitation of to use revenues from oil and mining climate and will soon propose new natural resources must be made public to fund much needed investment initiatives to promote FDI. The authorities and the country has recently been in infrastructure, agriculture, health have committed to work with the World declared compliant with the standards and education. Bank to undertake a comprehensive

2012 INVESTING IN NIGER 7 down from 35 days in 2006 to a far more respectable 17 days in 2012.

While Niger remains in the bottom third of Transparency International’s annual Corruption Index, there are concrete signs that the government is also taking the issue seriously. For example, in an effort to improve the management of public finances, Niger recently established a commission to combat economic, financial and fiscal malpractice. So far, the commission has recovered nearly US$10mn of misappropriated funds – some way off the total amount lost but a strong message nonetheless. President Issoufou has also formed an eight member High Authority to Combat Corruption that will work with the country’s Financial Intelligence Unit to investigate potential instances of corruption.

The other major area that the government is seeking to address is infrastructure in the country, or a lack of it. Fortunately new investment should benefit the country but Niger will always remain a landlocked nation. With the nearest major seaport over 650 miles away by road, it is not surprising that Niger ranks relatively poorly in infrastructure indexes. According to the World Bank’s 2010 Logistics Performance Index, Niger sits 106th out of 155 countries ranked. Indeed, the nearest ports of Lome in review of the Investment Code in 2012 encouraging rising from US$0.7bn in Togo and Cotonou in Benin are at least with the intention of bringing into line 2009 to US$1bn in 2010. 15 hours by road but deliveries can take with best practices. Most investors months due to delays at borders and already benefit from preferential tax Doing business in Niger however internal control points along the route. regimes but industrial investments benefit does present challenges. The domestic With no free trade zones at all, let alone from tax and customs exemptions with market is limited, there is a severe lack on route, this is an area the government some enjoying VAT exemptions too. of infrastructure, corruption remains should consider if investing in the country Total foreign ownership is welcomed in an issue, the labour force is ill-equipped is to become more attractive. all sectors apart from those deemed in and the bureaucracy is overbearing and the national interest. While energy and cumbersome. But the government is It is clear that Niger is a recent success mineral resources are considered part of aware that the business environment will story that looks set to continue. Efforts the national interest, joint ownership has need to improve if it is to sustain meaningful to address the business environment long been encouraged. growth. The prospects for the private and the return of political stability will sector are promising; the government’s make the government’s desire to attract The FDI that Niger has been able to Accelerated Development and Poverty foreign investment far easier to achieve. raise in the past has tended to flock Reduction Strategy emphasises the need Positive growth forecasts and relative towards the country’s natural resource to allow the private sector to develop macroeconomic stability will also stand wealth, but more recently Niger has through government support, greater the country in good stead. Additional also been successful in attracting FDI regional and international integration and revenues from the country’s budding oil outside of the mining and extraction improvements in the microeconomic industry and blooming uranium mines sectors. For example, Niger secured business environment. Evidence of the will certainly contribute to confidence US$78mn towards the new Malbaza impact that the reforms are having can in Niger as well as generating significant cement factory and a further US$257mn be seen in the World Bank’s annual Ease revenues that can benefit the wider towards the Kandadji hydroelectric of Doing Business report. Niger’s overall Nigerien economy. In the words of IMF dam 200 kilometres north of Niamey standing of 173 out of 183 demonstrates managing director Christine Lagarde “the that will provide both irrigation and the critical need for further reform but increase in oil and mining revenues, if used electricity, thus reducing Niger’s reliance as the report highlights there has been effectively, could help promote broad- on imported electricity from Nigeria. a marked improvement in the amount based and inclusive growth. Growth that Indeed, recent FDI figures have been of time it takes to establish a business – would benefit all Nigeriens.”

8 Investing In NIGER 2012 Economic Overview

Table 1 Realised Projected GDP 2008 2009 2010 2011 2012 2013 2014 2015 2016 Real GDP Growth (% Change) 9.6% -0.9% 8.0% 2.5% 14.2% 6.6% 7.3% 6.9% 7.0% Primary Fiscal Balance (% of GDP) 1.7% -5.2% -2.3% -3.4% -3.2% -4.4% -4.1% -2.1% -1.7% Exports (% of GDP) 19.4% 20.9% 21.4% 23.3% 24.0% 27.6% 28.7% 30.5% 30.4% External Debt (% of GDP) 13.9% 15.7% 16.4% 19.0% 22.0% 25.4% 28.5% 31.5% 34.0%

CHART 1 CHART 2 Official Total Exports Breakdown Official Export Destinations

5.2% 11.1% 16.7%

14.0% 15.6%

33.7% 16.6%

15.9%

Fuel and Mining Products United States Switzerland Agricultural Products Japan Nigeria Manufacturing EU (27)

CHART 3 CHART 4 Official Imports Breakdown Sources of Official Imports

3.3% 3.9%

13.7% 6.1%

37.9% 43.8% 25.3% 21.9%

Manufacturing China Nigeria Agricultural Products EU (27) Japan Fuel and Mining Products United States

NB. When informal unaccounted trade is included, Nigeria is likely Niger’s largest trade partner. Sources: IMF, AEO, WTO, US State Dept.

2012 INVESTING IN NIGER 9 Agriculture

consumption. Niger has the potential to be self sufficient in producing enough Agriculture food to feed its population under usual circumstances but the region is prone to drought which causes crops to fail. iger’s agricultural industry Currently, the primary crops cultivated for Another cause for the lack of food supply is mainly based upon internal export are cowpeas, cotton and peanuts; is the influx of refugees to the country Nmarkets, subsistence farming, however, the government is encouraging from neighbouring countries – such as herding, small trading, seasonal migration crop diversification and increasing the Chad and more recently Libya – where and informal markets and export. export of produce such as onions, garlic, there is political unrest. Niger’s population Agriculture is the primary source of income peppers and potatoes all of which grow is ever growing and in July 2011 the for the vast majority of the population in well in the western parts of the country – government recorded 15,730,754 citizens. the Republic of Niger, and the second primarily in the Niger River Valley. This area largest source of export for the country is also irrigated for rice production for The Republic of Niger falls into a – particularly livestock; the marketing local export. Peanut oilseed production in region across northern Africa called the of hides, skins and leather – especially 2010 stood at 110,000 tons and cotton Sahel zone, the Arabic name literally from goats. Livestock trade is organised production 5,000 bales. Millet, sorghum translated means “shore, coast” but the through strong traditional networks and cassava are also grown along the land itself represents the transition from linking producers, intermediaries, and southern borders with Nigeria, for local the Sahara desert in the north to the traders. Most animal sales by producers take place in local markets, and while the urban centres attract livestock for some local consumption the bulk is destined Agriculture is the primary source of income for export, mainly to Nigeria. 14% of for the vast majority of the population in Niger’s GDP is generated by the livestock production of camels, goats, sheep and the Republic of Niger, and the second largest cattle while the agriculture sector as a source of export for the country whole contributes 40% of Niger’s GDP.

10 Investing In NIGER 2012 Agriculture

Sudanian savannas in the south. Since 1985, NGO World Vision has been engaged in a project to assist farmers in changing (modernising) the methods with which they farm this land. In the south-central Maradi region, instead of employing destructive slash-and-burn farming techniques, farmers have been taught the benefits of agro-forestry – protecting sandy soil from erosion caused by the strong Harmattan winds and heavy downpours in the rainy season, while also restoring soil fertility by producing biomass. Farmers who shifted from growing only millet to agro-forestry did not only produce an additional 500,000 tons of cereals each year but also more or less doubled their income from US$200 to US$400 per year. In addition to the crop growing benefits, introducing agro-forestry Announced in May 2012, The International provides farmers with a safety net when crops do fail in giving them wood to Institute of Tropical Agriculture (IITA) and sell or providing food and shelter for the International Livestock Research Institute livestock on a subsistence level. Similar (ILRI) are together building a closer crop and agro-forestry and natural regeneration projects are currently being run in livestock partnership to ‘unleash the power eight African countries including of crop-livestock synergies’ neighbouring Chad and Mali as well as continuing in Niger. of farmers’ groups, including exchange Pastoralism Crop cultivation and training schemes on innovations in agriculture and information sharing/ Much of the livestock farming in Niger is In line with the government’s strategies technology transfers among the farmers. pastoral – herding cattle, sheep, goats and on poverty reduction and rural In March this year the International other ruminant animals to find new grazing development, the Food and Agriculture Crops Research Institute for the Semi- grounds. In a climate as harsh as Niger’s Organisation (FAO) launched a two Arid Tropics (ICRISAT) supported the can be, this form of farming is essential year project in June 2009 to assist in translation of ten training videos for but can be overlooked in agricultural the improvement of food security and farmers into two further languages, policies. In 2011, the African Union began livelihoods of rural farmers, who have Hausa and Zarma, two of the regional to redress this issue by launching the been hit hardest by the food price crisis. languages of Niger. Pastoral Policy Framework to strengthen Just over EUR3mn of funding has come the role played by pastoralism within the from the EU to help boost the productivity Announced in May 2012, The International African economy. This plan is supported of rain-fed crops (ie millet and sorghum, Institute of Tropical Agriculture (IITA) and by the Brussels Development Briefing the mainstay of Niger’s food supply) the International Livestock Research on Pastoralism (February 2012) where and irrigated market gardens across the Institute (ILRI) are together building a it was announced pastorialism should be county. Work has been undertaken to closer crop and livestock partnership recognised as a key sector in resource increase access for 56,000 smallholder to ‘unleash the power of crop-livestock management. Jeremy Swift from the farmers to certified seeds and fertilisers synergies’. The two organisations work Institute for Development Studies at as well as other agricultural tools by throughout Africa – including Niger – the University of Sussex in the UK said strengthening the existing network of and share a vision on the importance “Pastoralists here [Africa] are livestock cooperative input shops and creating of the continent’s dominant agricultural experts. Far from being a subsistence new ones. In the past fertilizers supplied production system, in which crop growing economy, their contribution to the by the local authorities have not met the is mixed with animal raising. ILRI is based national economy is significant if seldom farmer’s needs so as well as having 700 in Kenya with the mandate to improve acknowledged”. In fact, studies from Niger tons of fertilizers made available to them, the productivity of livestock while IITA show that sedentary forms of animal farmers’ groups are being offered training is located in Nigeria with the mandate production are 20% less productive on how to import them themselves. to improve sub-Saharan Africa’s major than mobile herding. “Nomadic herding New and refurbished warehouses are staples such as cassava, yam, maize, generates six times more total revenue being erected across the country and soybean, cowpea, cocoa, banana and than agriculture practised in the same credit lines are also being made available plantain. The development initiative zones,” noted Peter Gubbels, author of through local microfinance banks. Part aims to deepen IITA-ILRI/crop-livestock the multi-agency 2010 study Escaping the of the funding is being used to improve partnerships for the benefit of Africa’s Hunger Cycle: Pathways to Resilience in the technical and organisational capacity smallholder farmers. the Sahel. “With droughts becoming

2012 INVESTING IN NIGER 11 the water resource mobilisation is the cornerstone of the government’s Rural Development Strategy (RDS). The project, commenced in April 2011 and due to complete December 2017, entitled the Water Mobilisation Project to Enhance Food Security in Maradi, Tahoua and Zinder Regions (PMERZA-MTZ) was identified under the Global Agriculture and Food Security Programme (GAFSP), a multilateral financing mechanism for implementing G20 food security commitments. The total project cost is USD63.40mn and it is jointly financed by GAFSP, ADF, Spanish Cooperation, Government of Niger and various beneficiaries. The government and aid agencies are also paying pastoralists to stem the desertification with planting schemes, helping to restore the fragile ecosystem.

DEVELOPMENT AND FDI

The International Fund for Agricultural Development (IFAD) is currently involved in a number of operations in Niger aimed at rural and agricultural development. These more frequent, the already vast expanses enacted changes to its pastoral code in include most recently, the Food Security of dry land will continue to grow, and 2010, guaranteeing the right to travel and Development Support Project in the pastoralism will be the only sustainable across borders during the rainy season Maradi Region which aims to benefit over way of life. But it needs support in the and ensuring returning pastoralists are 450,000 people; the Agricultural and Rural form of financial services, improved access unaffected by border closures. Further Rehabilitation and Development Initiative to water, education and health care.” changes to Niger’s pastoral code ensure Project – Institutional Strengthening animals can drink water from public Component which is part of the ongoing Gubbels acknowledges that the policies reserves such as ponds which happen decentralisation process launched by the and attitudes towards pastoralists are to be located in cropping areas. The government with the aim of reducing changing (in Niger and Mali in particular) code also earmarks certain times of poverty by improving the access of all and helping communities to maintain the year when agricultural fields can its citizens to good local governance their cultural integrity, becoming more be accessed by their animals (although and services; and the ongoing Project resilient as rains become more erratic. some pastoralists have said the code is for the Promotion of Local Initiative for Another issue being raised by the not always adhered to at the local level). Development in Aguié. nomadic communities is the closing of country borders due to conflicts. In Aid agencies are creating and maintaining Government efforts have been rewarded recognising mobility as a fundamental water points along corridors used by and the recent announcement from right of pastoralists, the Niger government pastoralists to move their animals. Indeed, the Multilateral Investment Guarantee Agency (MIGA) that Niger has fulfilled all of its membership requirements to 1990 2008 2009 become MIGA’s 177th member country Population 7.8mn 14.5mn 15mn (May 2012) – meaning that foreign Rural Population 85% – 83% direct investment into the country is Land area 1,267,000 sq km 1,267,000 sq km 1,267,000 sq km now eligible for the agency’s political risk Agricultural land* 26% 34% – insurance. The announcement ensures Arable land* 8.7% 11.4% – that Niger is now well positioned to Forest area* 1.5% 1% – continue its drive for FDI,which should Cereal production 6882.3ha – 9929.1ha help to bolster and modernise the Cereal yield 310kg/ ha – 489kg/ ha agriculture sector in coming years. *of total land area. Source: World Bank – World Development Indicators 2011

Crop production index Food production index Livestock production index 1999-2001 = 100 1999-2001 = 100 1999-2001 = 100 1990 2009 1990 2009 1990 2009 64 210 61 186 56 153 Source: World Bank – World Development Indicators 2011

12 Investing In NIGER 2012 Energy and Mining

Energy and Mining

Mining is operated under the auspices of a number of joint ventures, until Energy and Mining recently almost exclusively between the government (in the form of the parastatal SOPAMIN) and the French iger’s oil and mining The country also produces cement, company Areva. However, other overseas prospects are exceptional, but gypsum, molybdenum, limestone and companies have now begun to expand Nthe country’s potential is yet salt. Its metal deposits include gold, their prospecting operations in Niger. to be fully evaluated, and exploitation platinum, silver, copper, lead and of its assets has commenced only in tin, as well as metals for more specialised The Areva-SOPAMIN joint ventures are: recent decades. uses such as lithium, cobalt, chromium and manganese. Arlit: Société des Mines de l’Air The Niger government actively seeks (SOMAIR), which has been mining in Arlit foreign investment to help underwrite Niger’s gemstone potential is being since 1971. This site has produced more the development of its rich mineral evaluated by Consolidated Pacific Bay than 44,000 tons of uranium (tU) to date. and hydrocarbon resources. To facilitate Minerals. This Canadian-based company SOMAIR is 63.4% owned by Areva NC growth, the government has, over time, has secured prospecting rights covering and 36.6% by SOPAMIN. implemented reform of the main legal 20,000 square kilometres. The areas in provisions with regard to exploration and focus include the Air Massif region in Akouta: Compagnie Miniere d’Akouta production activities, facilitating the award the north, the Liptako region in the west (COMINAK), established in 1974, operates of renewable exploration and production and the Damagaram-Mounio, Zinder and the largest underground uranium mine in licences and granting generous customs Maradi areas in the south. the world, which has produced more than and tax exemptions. 55,000 tU. The operation is 34% owned Uranium by Areva NC, 31% by SOPAMIN, 25% Minerals by Japan’s Overseas Uranium Resources Uranium was first discovered at Azelik in Development Co. (OURD) and 10% by Niger is the world’s fifth largest uranium Niger in the 1950’s. Uranium is principally Enusa SA, Spain. exporter, accounting for around 7.5% of mined close to the towns of Arlit and the world’s mining output. Niger’s mineral Akokan, 900 kilometres North East of the Areva has now begun work to develop the sector accounts for about 3% of its GDP capital Niamey, on the western range of deposits at Immouraren, under the auspices and for about 40% of exports. the Air Mountains. of IMMOURAREN SA, now owned

2012 INVESTING IN NIGER 13 jointly by Areva, the Niger government and uranium exploration licenses in the Tim Canada, Western Australia-based Taruga the Korean Electric Power Corp (KEPCO). Mersoi Basin (Niger), one of the world’s Gold, and Trendfield Gold Mining Ltd, The mine will be the largest open-pit largest uranium production districts. subsidiary of Hong Kong-based Trendfield uranium mine in western Africa and Holdings Inc. the second-largest reserve in the world: Non-Proliferation production is predicted to attain 5,000 SOPAMIN metrics tons per year for up to 35 years. Niger is a party to the Nuclear Non- Proliferation Treaty. Following the introduction of the In 2011, Areva-operated mines produced Nigerien Mining Code in 2006 (which 4,000 tU of Uranium; the onset of Gold and other outlined a range of new incentives production at Immouraren will see Niger minerals for investors in the country’s minerals become the world’s second-largest industry), the Société du Patrimoine uranium producer. Alluvial gold was discovered by artisanal des Mines du Niger (SOPAMIN) was miners in the Liptako area, on the border created to replace the National Office Several other international mining with Burkino Faso, in the 1980’s. European for Mining Exploration (ONAREM) as operators are now prospecting in Niger Development funds underwrote the state body responsible for Niger’s and extensive exploration is underway. subsequent exploration, which led to the mineral assets. Projects include: opening of the country’s first commercial open pit gold mine, at Samira Hill, in In the uranium industry, SOPAMIN has Abokorum: in 2006, agreement was September 2004. shares in COMINAK, SOMAIR and reach with the Chinese National Nuclear SOMINA. In the gold industry it has a Corporation (CNNC), through its The Samira Hill Mine, located on the stake in Société des Mines du Liptako, subsidiary China Nuclear International 50-kilometre gold belt known as the working with Semafo. Uranium Corporation (SinoU), to Samira Horizon, is the country’s only develop this deposit of 12,790 tU. operational gold mine. The Niger Oil government holds 20% interest in the Azelik: this mine, South West of Arlit mine, while the operator, Semafo – a Exploration of Niger’s oil potential began in and North West of Agadez, commenced Canadian-based mining company – owns the 1950’s but activity began to accelerate in operations in 2010 and is expected the remaining 80%. the 1970’s and 1980’s with the involvement to produce 700 tU/yr. The project is of some of the world’s major oil companies, owned by Société des Mines d’Azelik S.A. The total of proven and probable reserves including Global Energy, Sun Oil, Conoco, (SOMINA), a joint venture between the was estimated at 9.4 million tonnes at a Texaco, Esso and Elf. Niger government, SinoU, ZXJoy Invest grade of 1.67 g/t gold at 31 December and Trendfield Holdings Ltd. The Niger 2010. Measured mineral resources at the The areas showing the greatest potential government has also recently secured a same date were estimated at 8 million to date for oil are the Djado Basin to the US$99mn loan from a Chinese bank to tonnes at 1.54 g/t gold and indicated northeast of the country and the NNW- extend the Azelik operation. mineral resources were estimated at 20.9 SSE East Niger rift basin, consisting of a million tonnes at 1.49 g/t gold. series of individual grabens: Kafra, Grein, The Madaouela deposit is in the Arlit Bilma, Tefidet, West Termit and N’Gel Egji. region. UK-based GoviEx Uranium Inc. and In 2010, Semafo announced the discovery of This system also includes Agadem, divided Trendfield established GoviEx Niger JV in two new gold zones at Samira Hill: Boulon into the Ténéré Graben in the north and 2007 to develop this prospect. Canadian- Jounga North and Libdorado Northwest; the Termit Graben in the South.

West Niger’s Lullemeden basin, a The Niger government actively seeks structural depression of c. 360,000 square kilometres, with evidence of grabens to foreign investment to help underwrite the southwest, has also attracted interest. the development of its rich mineral and By the 1990’s, Djado and Agadem had hydrocarbon resources become the focus of exploration; Hunt Oil Company was granted a new permit for the former in 1992. The Ténéré block based Cameco and the Niger government drilling has continued in these zones in 2011 has, since 2003, been held by a consortium subsequently joined the consortium. In 2012, and 2012 and the extensive exploratory formed by the Canadian company TG a convertible debt-financing agreement programme to locate new sources of oxide World Energy Corp (20%) and its project with Toshiba Corporation provided for ore is ongoing at Samira Hill. operator CNPCIT (a unit of CNPC, the US$40mn to support exploration and China National Petroleum Company), the development prior to the anticipated Niger’s gold mining industry is expected to latter holding 80% interest. production date of 2017. Tests of the area undergo a period of significant growth as have shown 20,000 tU indicated mineral a host of international companies (mostly Two other blocks are currently under resources and 19,600 tU inferred resources. from Canada, Australia and South Africa) exploration licence: Bilma, held by have expanded their exploration and CNPCIT with a 100% holding; and Kafra, South-African based URU Metals development projects in-country. Current held by the Algerian State Oil company, (previously Niger Uranium) holds eight prospectors include AMI Resources Inc. of SONATRACH.

14 Investing In NIGER 2012 Energy and Mining

By 2011, 105 wells had been drilled, 20,000 barrels per day (bpd), and will Abuja earlier this year during the signing including 76 exploration wells, 17 produce gasoline, gas oil and Liquefied of the African Petroleum Producers evaluation wells and 12 development Petroleum Gas (LPG). As domestic Association (APPA) statute, stated that wells. However, a significant number of consumption is currently 7,000 bpd, Niger currently produces and refines the exploratory wells were commenced the excess will be earmarked for 20,000 barrels of crude oil per day, of in the 1970’s, before reliable seismic data export, which will be facilitated by the which 13,000 bpd exceeds domestic was available. next phase of the project, involving the consumption. He confirmed that this construction of an additional 2,000 excess will be available for export in CNPCIT has also been active in the kilometre pipeline to access foreign the future, explaining: “The feasibility southern half of the Agadem block – the markets (Niger’s neighbouring countries study on the construction of a pipeline country’s most productive field to date include Africa’s main oil producers). through Cameroon to the port has just – signing a US$5bn integrated upstream Marketing of oil exports will be been completed and …we are looking at and downstream agreement with the undertaken by SONIDEP. 2013 or 2014 for export”. Niger Government in 2008. The contract encompasses oilfield exploration and SONIDEP EITI development, construction of a 462.5 km pipeline and a joint venture refinery at SONIDEP (The Société Nigérienne Niger was accepted by the international Soraz, in the Zinder Region. des Produits Pétroliers, i.e. the Nigerien EITI (Extractive Industries Transparency Petroleum Products Company) is a Board) as EITI compliant in March 2011, By 2010, three exploratory wells sited parastatal established in 1977 under and will seek to disclose oil revenues in in the Dibeilla area east of Agadem had the direct supervision of the Minister EITI reports from 2012 onwards. produced high yield flow. The first phase of for Trade. SONIDEP is responsible the Agadem block – which includes oilfields for the importation, transportation, Trans-Saharan at Goumeri and Sokor – has a production storage, refining, sales and marketing Gas Pipeline capacity of one million tons per annum. of petroleum products in Niger. It also operates petrol stations. An agreement was signed in 2009 by the Oil reserves from Agadem were initially Nigerian National Petroleum Company estimated at approx. 300 million barrels Exports (NNPC), the Government of Niger but, following further tests in 2011, the and SONATRACH of Algeria to build a Niger government announced a new The prospects for Niger’s crude oil exports planned natural gas pipeline designed to estimate of 468 million barrels. were improved by the recent agreement deliver gas to the European markets. The with Chad to ship oil from Agadem through pipeline will run from the Warri Region of Construction of the new refinery and the Chad-Cameroon pipeline. Nigeria north through west Niger and up pipeline commenced in 2009: both were to Hassi R’Mel in Algeria. completed before the end of 2011. Niger’s Minister of Energy and The Zinder refinery has a capacity of Petroleum, Foumakoye Gado, speaking in A number of multinational energy concerns including Russia’s Gazprom, France’s Total, Anglo-Dutch company Shell and Indian company GAIL have Legal Framework – Key provisions expressed interest in investing in the in research and exploitation Trans-Saharan Gas Pipeline project, which has not yet commenced construction. The main legal provisions with regard to Provisions applicable to PSC exploration and production activities are contracts as follows: Coal • Cost Oil up to 70%; • Exploration licence, granted for a • Tax Oil from 40%; The coal deposits at Tchirozerine, north maximum of 4 years, renewable twice Common provisions to Concession of Agadez in north central Niger, were for a maximum of 2 years each time; and PSC contracts discovered in 1964. The parastatal • Possibility of extending validity of the Société Nigerienne de Charbon d’Anour- second renewal for 1 extra year; • Ad Valorem Royalty between 12.5% and Araren (SONICHAR) is now responsible • Production licence granted for 25 years, 15% for crude oil, and between 2.5% and for the opencast mining operation. The renewable for 10 years; 5% for natural gas; • Both Concessions and Production • Custom exemption for importation of extracted coal is not of high quality Sharing Contract regimes are applicable; all material, supply, equipment and spare but is sufficient to supply an electricity- • Signature bonus is applicable; parts used for petroleum operations generating station which powers the • Payments of surface fees and royalties during the exploration period and the nearby uranium mining operations are applicable; first 5 years of production; COMINAK and SOMAIR. The mine has • Stabilization of economic and fiscal • Exemption of tax on turnover, VAT reserves estimated at 9.1 Mt (million regimes from the signature of the licence. and all similar taxes for the total tons); Niger’s total coal resources have Economic and fiscal provisions duration of the operations (Exploration, been estimated at 13.7 Mt. Provisions applicable to Concessions Development and Production); contracts • Free import and export of petroleum products; • Direct income tax between 45% • Free funds conversion and transfer. and 60%;

2012 INVESTING IN NIGER 15 Infrastructure

and Hydrocarbons), Transport and Telecommunication sectors. ARM is Infrastructure responsible for promoting the economic development of each sector, establishing and overseeing regulatory frameworks iger’s government has made At present, Niger spends c.US$225mn per and ensuring fair competition. significant infrastructural annum, with the government’s contribution Nimprovements in recent years, matched by multilateral development Transport in particular in those sectors subject banks and other overseas agencies. to liberalisation such as information The major expense has been on water Niger is a large, landlocked country and and communication technology (ICT) and sanitation improvements (which its government faces the twin challenges and urban water supply. Nevertheless, account for cUS$66mn per annum) – of linking its cities over long distances between 2000 and 2005, the contribution with notable success to date – followed and difficult terrain; and facilitating trade of the country’s infrastructure to per by transport and ICT. both within the country and with its capita growth was only 0.3%. regional neighbours. ARM It is predicted that per capita growth Roads could be increased by 4.5% of the ARM, (Autorité de Regulation Multi- country’s infrastructure, and in particular Sectorielle, ARM) was established Road transport is the key means of its transportation network, could be by the Niger government in 1999 as travel in Niger: consequently, the poor raised to the level of that of Sub-Saharan a multi-sector regulatory agency to quality of some of the road network is an Africa’s middle income countries. supervise the Water, Energy (Electricity impediment to economic growth.

A World Bank report on Niger’s infrastructure, dated July 2011, estimated Recent developments in domestic power that meeting the country’s numerous generation are positive: high-flow oil wells have infrastructural challenges would cost approximately US$747mn per annum over begun production in the Agadem block and the the next ten years, c. US$529mn of this country has now become an oil producer annually to be reserved for capital projects.

16 Investing In NIGER 2012 Infrastructure

About two-thirds of the country’s road Waterways and ports Niger’s neighbours. The country has network is considered to be in a good or historically relied upon imported power fair condition, but the remainder is quite Although it has no coastline, Niger does from Nigeria, which supplies Niger’s poor. The situation is exacerbated by the maintain a ports authority to administer state power generation and transmission funding constraints on road maintenance its trade through the port at Cotonou in company, NIGELEC (Société Nigérienne and repair. Benin – the country’s primary overseas d’Electricité) with 90% of its national import/export route – at Lomé in Togo electricity requirements at a subsidised rate. Within the urban areas, private motor and Port Harcourt in Nigeria. As might vehicle ownership is minimal and public be predicted, additional costs (as well NIGELEC also purchases energy from the transport very limited so private operators as delays) are suffered by the necessity Nigerien parastatal (SONICHAR), which of vans, cars and minibuses provide a to route overseas trade via other operates a coal-fired electricity-generating necessary service; similarly a plethora countries’ ports. station in Tchirozerine supplying power to the nearby uranium mines.

The African Development Bank (AfDB) Following internal reforms in 2006, is committed to the promotion of the NIGELEC has improved its operational country’s road infrastructure in order performance, but power generation remains limited to an installed capacity of to open up transportation links, and 105 MW. This is equivalent to an average development bank funding is in place to of 8 MW per million people, one of the fund a number of road schemes lowest population/power capacity ratios in Africa. As a consequence, biomass fuels remain a major source of domestic of independently-owned buses, trucks The Niger River is the country’s main energy, especially outside the cities. and coaches run between the major waterway but is navigable only on a cities carrying passengers and freight. The seasonal basis and is, in many areas, too Given the growing demand for power to propensity to overload freight vehicles – to shallow for larger draft vessels. support the expansion of the country’s maximise profit on long-haul journeys – is mining industry, Niger’s low generation a major contributor to road deterioration. ICT capacity and inadequate transmission infrastructure present serious challenges The size of the entire road network in The original landline monopoly holder and to economic growth. However, recent Niger was 18,948 km as of 2008. The paved principal infrastructure operator, Sonitel, was developments in domestic power proportion of the country’s road network privatised in 2001, opening up the mobile generation are positive: high-flow oil wells (paved being defined as roads surfaced and broadband markets. Additionally, in have begun production in the Agadem with crushed stone (macadam) and 2007, France Telecom was licensed to block and the country has now become hydrocarbon binder or bituminized agents, provide a wide range of ICT services. an oil producer. The newly-constructed with concrete, or with cobblestones) was Zinder refinery has a capacity of 20,000 20.65% at the same date. Several major ISPs now operate in barrels per day, far surpassing current Niger, including Sonitel, Afripa, Moov domestic oil needs of 7,000 bpd. Rail Niger, Orange Niger, Connecteo, X.com and Liptinfor. Niger also has untapped hydropower There is no railway in Niger. The country resources: construction has now begun jointly operates the the Benin-based While mobile and broadband penetration on the Kandadji dam, situated on the Cotonou to Parakou railway line with has increased and accelerated from the Niger river, 180 km NW of Niamey, in Benin under the auspices of OCBN restricted coverage available prior to a project funded by a number of public (Organisation Commune Benin Niger) market reform – and almost half the and private institutions including the but, while there has been private interest population were able to access the global Islamic Development Bank, the African in extending the line into Niger to serve system for mobile communication (GSM) Development Bank (AfDB), OPEC and the capital Niamey, the proposal has by 2008 – mobile, landline and internet the Saudi Development Fund. The plant remained at the discussion stage. tariffs nonetheless remain relatively high. has a planned capacity of 130 MW. In addition, in 2009, it was estimated Air transport that, outside urban areas, only half the Two other promising hydropower sites country had access to the country’s have been identified in the Niger River Niger’s air transport sector has recovered telecommunications infrastructure. Valley, at Gambou and Dyondyonga. from the decline experienced at the Feasibility studies indicate that 122.5 MW beginning of the century, boosted by Facilitating wider access to ICT remains of power could be installed at Gambou, market liberalisation. Niger has six major a priority but may require the installation and 26 MW at Dyondyonga. Preliminary airports including three international air of new telecommunications infrastructure studies on at least four other Niger terminals – Niamey, Agadez and Zinder by private operators. tributaries have also shown additional – and a number of smaller airstrips. untapped potential. Nevertheless, the market remains Power relatively underdeveloped, and funding Renewable energy resources – such (to upgrade facilities) remains an issue National power generation capacity as solar and wind power – also offer and is in need of investment. and access rates are low compared to opportunities for exploitation.

2012 INVESTING IN NIGER 17 the Tibéri-Dakoro and Madaoua-Bouza The Niger government will require continued Road Improvement Project and Dori-Tera- Burkina Faso Border Road Improvement investment from the private sector and from Project. In addition, the Bank intends to international financial institutions to bring finance technical and vocational training to ensure the supply of skilled labour for the nation’s infrastructure up to the standard infrastructure management. necessary to maintain economic growth The International Development Association (IDA) has approved a grant of Water supply Investment in infrastructure has been US$30mn to underwrite the cost of civil and sanitation managed, with notable success, by the public works on unpaved road sections of the asset-holding institution SPEN (Société more densely populated southwestern Niger’s most important water resource de Patrimoine des Eaux du Niger), with and southern rural areas, facilitating is the Niger River, a supply that is already improvements in operational efficiency, bill local access to markets and services, in decline. Similarly, rainfall is limited collection and financial performance. and improving the management and and drought is a common occurrence. sustainability of road maintenance. While domestic and industrial use However, rural areas still lag behind. While has grown over time, the demands 42% of the population now has access to The World Bank’s Urban Water and of the country’s agricultural sector drinking water, and the rural population Sanitation Project for Niger was approved are predominant. However, significant has increasingly moved away from the use in 2011 with a total funding commitment additional investment will be required of surface water to boreholes and wells, of US$90.8mn. This five-year project aims to to upgrade irrigation systems if the not all of these supplies are protected. increase access to sustainable water supply country’s full agricultural potential is to Repair and maintenance is underfunded service and improve sanitation services. be realised. and the construction of toilets has not kept pace with population growth. Conclusion Great effort has been made to move the population from its dependence on Approved Substantial progress has already been surface water to, at the most basic levels, development made in upgrading the country’s urban standpipes, boreholes and wells. Action projects areas, a project still very much in train. The to reform urban water supplies began in Niger government will require continued 1999; this led, in 2001, to the granting of a The African Development Bank (AfDB) investment from the private sector and from ten year concession to a private operator, is committed to the promotion of the international financial institutions to bring the SEEN (Société d’Exploitation des Eaux country’s road infrastructure in order nation’s infrastructure – roads, power, water, du Niger) to operate the water supply to open up transportation links, and sanitation, ICT and telecommunications network for over 50 of the country’s development bank funding is in place to services – up to the standard necessary to major urban centres. fund a number of road schemes including maintain economic growth.

18 Investing In NIGER 2012 Political History Political History

municipal elections took place on 24th July 2004. Administrative powers were Political History distributed among 265 communes (local councils) and, later, regions and departments were established as decentralised entities. he history of Niger reflects the era in which the bulk of Europe’s African long and independent histories colonies won their freedom, Niger was Soon after approval of the 1999 Tof the diverse groups – both granted independence in 1960 (within Constitution, elections took place, and indigenous and foreign settlers – of the the French community). The newly Mamadou Tandja became president. wider region. The modern frontiers independent state’s first ruler was He was re-elected in December 2004 of Niger border on seven countries, President Hamani Diori who occupied for a second term. However, in May including Nigeria, Chad and Algeria, and power for 14 years – however the 2009 Tandja dissolved Parliament after reveal the pivotal part the country plays unforgiving droughts and government the country’s constitutional court ruled in the region in which it is geographically corruption that plagued his regime against plans to hold a referendum on a gateway between North and sub- proved to be a sign of the decades of whether to allow him a third term in Saharan Africa. hardship to come for the Nigerien office. The dissolution of Parliament people. Because, in the years which sparked a new political struggle between Historically, what is now called Niger have followed, progress for Niger has the president and his opponents who existed on the fringes of several large been difficult, often stymied by political had demanded that he step down states, of which one of the best known is instability and drought, two issues, human in December 2009, at the end of his the Songhai Empire which expanded into and natural, which have repeatedly second term. what is modern Niger in the fifteenth blighted the country’s modern history century before collapsing a century later and hampered its development. Since The constitutional crisis led eventually into a number of smaller entities. independence, Nigeriens have lived to a military takeover in February, under five constitutions (they are now 2010 and President Tandja was jailed The first European explorers – notably in their sixth) and three periods of and charged with corruption. The new Mungo Park of Britain and Heinrich Barth military rule. Meanwhile insurgency, both military junta – the Supreme Council of Germany – arrived in the nineteenth by Tuareg rebels in the North and the for the Restoration of Democracy century, primarily in search of the source of Niger Movement for Justice (MNJ) have (CSRD) under the leadership of Major the Niger River. The arrival of the western continued into modern times. In 2009 Salou Djibo – promised to return the powers came at an inevitable cost to the the MNJ and the Government peace held country to democratic civilian rule, and indigenous population(s) and by the late talks in Libya at which they committed were true to their word, establishing a 1890’s Niger came under French rule. themselves to a ‘total and comprehensive’ 12-month transition to Democracy. A French efforts at “pacification”, however, peace but Tuareg insurgency, continued, Constitutional Referendum and national which began before 1900, proved difficult, with a major rebellion in Northern Niger elections were held at the beginning of and dissident ethnic groups, notably the between 2007 and 2008. 2011 and a presidential election was desert Tuareg, were not fully subdued held on 31 January 2011. With no clear until 1922 when Niger finally became a Political developments saw voters in winner emerging, run-off elections were French colony. July 1999 overwhelmingly approve held on 12 March 2011. Following the a new constitution which provided second ballot, Mahamadou Issoufou of In the first half of the twentieth century, for presidential and legislative multi- the Nigerien Party for Democracy and Niger’s colonial history mirrored that of party elections. This new constitution Socialism was elected President, taking other French West African territories. The restored the semi-presidential system 58% of the vote against his opponent, government in France administered its of government of the December 1992 Seini Oumarou. A parliamentary election West African colonies through a governor Constitution of the Third Republic in was held at the same time. general in Dakar, in Senegal, whilst which the President of the Republic, individual governors were appointed elected by universal suffrage for a five- The new government’s priorities include to its various territories, including Niger. year term, and a prime minister, named a strong commitment to facing security After the destruction and upheavals by the president, share executive power. threats in the region, accelerating of World War II, the new French In 2004, to reflect Niger’s increasing economic development, reducing constitution, became more forward population, the Unicameral National corruption, and improving governance in looking with its colonies (as much out Assembly was expanded to 113 deputies the mining sector. The government is also of necessity as by design) and in addition elected for a five year term under a committed to making Niger more open to conferring French citizenship on the majority system of representation. and attractive to business investment. inhabitants of the territories, provided Political parties must attain at least With a brightening picture economically, for the decentralisation of power – partly 5% of the vote in order to gain a seat in although dangers do still remain, the through the limited participation in the legislature. nation’s medium-term prospects are political life for local advisory assemblies. favourable. And with its most stable The constitution also provided for the government in years and a growing After some seventy years under French popular election of municipal and local economy, Niger is set for a future of real rule of one kind or another, and in the officials, and the first-ever successful progress and development.

2012 INVESTING IN NIGER 19

Niger Consulate Uk Niger Consulate Uk Mission Statement

he Consulate is the official Opening Hours representative body of the TGovernment of the Republic Our office hours are Monday to Friday of Niger in The United Kingdom of 9:30am – 5:30pm Great Britain and Northern Ireland with supervision from the Ambassador of Consular hours are Monday to Friday Niger in Paris. 10:00am – 3:00pm

In addition to bilateral and multilateral The Visa office (when opened) will operate activities our objective is to represent Monday to Friday 10am – 2pm and will the interests of the Republic of Niger be initially available by appointment only. in the UK, to promote Trade, Investment, Details on those people requiring a visa to Sport and Tourism in Niger and Niger and how to apply will be posted on work closely with Aid agencies in a bid the visa page in due course. towards getting much needed Aid to Niger. Being a former French colony Contact Us Niger is a country that is not widely known in the UK and our aim is to Consulate of the Republic bring the two countries and their of Niger UK people closer. Oakridge House, Wellington Road For the citizens of Niger living in the High Wycombe, Buckinghamshire UK our objective is to look after and HP12 3PR represent your interests while providing Tel: 01494 557 345 Fax: 01494 557 346 advice in general on how to live as law- Email: [email protected] abiding citizens in the UK. Email: [email protected]

The programME of the President of the Republic The strategic program of His Excellency Mr Issoufou Mahamadou 5. More than six hundred (600) billion FCFA for urban, rural and is broken down into eight (8) points: pastoral water. Access to water for everyone is a priority. 1. Build strong, credible and sustainable Democratic Institutions; 6. Over six hundred (600) billion FCFA in infrastructure and energy. 2. Ensure the personal security, safety and wellbeing of all, Investing in roads, rural routes, railways and electricity as without throughout the country; these there is no development. 3. Revive the economy and promote social development through 7. More than one thousand five hundred (1,500) billion FCFA for public investments. This is why he plans to mobilise more than the benefit of education and six hundred (600) billion FCFA for six thousand (6,000) billion FCFA during his period in office by health in order to significantly improve the key social factors of a the combination of a more functional and efficient public developing society. expenditure and a sensible increase in external resources. 8. The combination of all these economic and social actions will allow These funds will be used for; us to create fifty thousand (50,000) jobs per year for the young. 4. Over nine hundred (900) billion FCFA for agriculture and The cohesion of our society requires an offer of hope for youth. livestock to help ensure food security through the ‘3N’ initiatives (‘Les Nigériens Nourrissent les Nigériens’ – Nigeriens feeding Strategic Programme Nigeriens) and also to increase the incomes of the farmers The current Government is working very hard to find ways to and pastoralists. This virtuous cycle will initiate and sustain the improve every sector of Niger and the President has implemented development of our country. a five year plan and social project for the country

22 Investing In NIGER 2012 ourNotes partners ContaCts Notes

Persoil SA Quartier Yantala haut Street : YN 33, CN1 - Door 31 Niamey, Republic of Niger Persoil, your reliable partner in the RCCM-NI-NIA-2011-B-3237 petroleum industry and trade in Africa and internationally www.persoil-ne.com [email protected]

Burkina Faso Director of Operations Benin & Togo Paul Rieussec Christophe Villordin +337 60 22 46 10 +227 91 99 30 18 +227 9244 3607 +336 98 27 59 98 [email protected] [email protected] [email protected]

Senegal & Mali Operations Niamey Persoil is a dynamic oil trading & We handle all logistical and commercial Persoil is a partner with Amadou Diallo Mohamed Ziam distribution company head-quartered processes related to the storage, transport Sonidep in the export of +221 77 41 04 037 +227 90 81 25 29 in Niger. and trade of petroleum products. Our local refined products from [email protected] +336 65 12 76 43 Established in 2011 as the first Nigerien knowledge, experience and commitment SONIDEP Niger. [email protected] fuel trading company, our activities drive us to anticipate and meet the demands Guinea-Bissau expand to the West African region of our partners and customers. Telma Monteiro (Nigeria, Benin, Burkina Faso, Mali, Persoil Markets™, the downstream subsidiary +245 554 88 82 of Persoil, operates its own filling stations Persoil is a partner with Senegal, Guinea-Bissau, Guinea & [email protected] the Société Nationale Sierra Leone). in Mali and Senegal. Burkinabè des Hydrocar- Guinea & Sierra Leone bures (SONABHY) for the Souleyman Bah storage of its petroleum +224 64 30 20 30 products in the depots of +224 62 91 91 00 Bobo-Dioulasso and Bingo. [email protected]

24 Investing In NIGER 2012 www.persoil-ne.com PERSOILMARKETS™ our partners ContaCts

www.persoil-ne.com PERSOILMARKETS™

our strategy our objeCtives our serviCes export flow & filling stations

Mauritania

Niger Dakar Kayes Senegal Mali Niamey Zinder As a pioneering company in Niger, The Gambia Bamako Ouagadougou Persoil seeks to establish itself as the Guinea Bissau Bissau Burkina-Faso leading provider of logistical services, Bobo-Dioulasso Guinea Siguiri Kano not only within its parent country, but Benin Sierra also in the global scene. Leone Ivory Coast Ghana Togo Nigeria Cotonou Liberia

Depot PERSOIL Cameroon The company is also focused Persoil seeks to maintain its position › Petroleum trading P ™ PERSOILMARKETS™ filling stations in executing its strategy of growth, as a market leader in its field. We aim PERSOIL with safety and environmental to do so by increasing our network of › Refined petroleum products transport, export flow commitments within its core. filling stations, and expanding our fleet storage, delivery and distribution of transportation vehicles. Operating its own fleet of transportation › Logistics support lPG vehicles, Persoil further enforces its strategy We are also actively contributing to the › Independent filling stations network our produCts for safety and reliability, and its commit- development of industry within Niger, by ProPerties sPecification test methods Vapor pressure (37.8°C) kPa max 1380 ASTM D1267 or ASTM D2598 ment to the environment. ensuring that safe and reliable fuel (white C5 and C5 heavier, % vol max 3.0 ASTM D2163 Density (15°C), kg/m3 Report ASTM D2598 This dedication is also strengthened through products and LPG) is available whenever 91 Motor Gasoline Unleaded Cooper strip corrosion rating max No.1 ASTM D1838 Total Sulfur, mg/kg max 140 ASTM D3246 a responsible and reliable network of and wherever it is required. ProPerties sPecification test methods Free water content None Visual inspection Octane number (RON) min 91 ASTM D2699 contacts, and dedicated staff. Lead content, g/L max 0.013 ASTM D3237 Distillation 0 diesel & 5 diesel Persoil believes that with any successful 10% evaporated, °C max 70 50% evaporated, °C max 120 ProPerties sPecification test methods organisation, its three main assets are its 90% evaporated, °C max 190 ASTM D86 Flash point, °C min 55 ASTM D93 FBP, °C max 205 Water, % mass max 0.05 ASTM D95 investors, clients and its workforce. Residue, %vol min 2.0 Distillation : Reid vapor pressure, kPa 50% Recovered, °C max 300 With a sound strategy, and ethical st st 1 Nov.-31 Mar. max 80 90% Recovered, °C max 355 ASTM D86 min 45 ASTM D5191 95% Recovered, °C max 365 objectives, Persoil aims to maximise st st 1 Apr.-31 Oct. max 67 Kinematic viscosity (20 °C), mm2/s 2.2 - 8.8 ASTM D445 returns for all parties. min 40 Ash, % mass max 0.01 ASTM D482 Existent gum, mg/100mL max 5.0 ASTM D381 Sulfur, % mass max 0.2 ASTM D5453 Induction period min 240 ASTM D525 Copper strip corrosion rating max No.1 ASTM D130 Sulfur content, %mass max 0.15 ASTM D5453 Cetane number, (calculate) min 48 ASTM D976 Sulfur in mercaptan content, % mass max 0.001 ASTM D3227 Cloud point, °C max 10 ASTM D2500 or doctor test Negative IP30 or ASTM D4952 10% Distillation carbon residue, % mass max 0.3 ASTM D4530 Copper strip corrosion rating max No.1 ASTM D130 Density (15°C), kg/m3 Report ASTM D4052 Density (15°C), kg/m3 Report ASTM D4052 Color max 3.0 ASTM D1500

www.persoil-ne.com PERSOILMARKETS™

our strategy our objeCtives our serviCes export flow & filling stations

Mauritania

www.persoil-ne.com PERSOILMARKETS™ our partners ContaCts

Senegal & Mali Operations Niamey Persoil is a dynamic oil trading & We handle all logistical and commercial Persoil is a partner with Amadou Diallo Mohamed Ziam distribution company head-quartered processes related to the storage, transport Sonidep in the export of +221 77 41 04 037 +227 90 81 25 29 in Niger. and trade of petroleum products. Our local refined products from [email protected] +336 65 12 76 43 Established in 2011 as the first Nigerien knowledge, experience and commitment SONIDEP Niger. [email protected] fuel trading company, our activities drive us to anticipate and meet the demands Guinea-Bissau The conference is supported by expand to the West African region of our partners and customers. Telma Monteiro Platinum Sponsor Platinum Sponsor (Nigeria, Benin, Burkina Faso, Mali, Persoil Markets™, the downstream subsidiary +245 554 88 82 of Persoil, operates its own filling stations Persoil is a partner with Senegal, Guinea-Bissau, Guinea & [email protected] the Société Nationale Sierra Leone). in Mali and Senegal. Burkinabè des Hydrocar- Guinea & Sierra Leone bures (SONABHY) for the Souleyman Bah storage of its petroleum +224 64 30 20 30 products in the depots of +224 62 91 91 00 Bobo-Dioulasso and Bingo. [email protected]