Niger is a poor, land-locked country which has undergone its second coup d'etat and third change in political leadership in a four-year period. A transition government is scheduled to turn over power to a democratically elected president and legislature by January 2000. Despite political upheavals, Niger is committed to restructuring its economy to facilitate growth.
In recent years the government of Niger has encouraged foreign trade and investment by promulgating new investment, commercial, mining and petroleum codes. These codes provide tax advantages for foreign investors, duty-free import of capital equipment, guarantees against expropriation, and the right to repatriate earnings and dividends.
A successful agricultural season led to a GDP growth rate of eight percent in 1998, though most other sectors remained stagnant. There is growth potential in telecommunications, gold mining and the agribusiness sector. The April 1999 coup d'etat and the subsequent suspension of foreign assistance coupled with the already depressed uranium market has had a crippling effect on the rest of the economy.
The economy has only a small modern sector, which includes the public sector, light manufacturing and a small class of consumers. Even though most of the formal sector is at least partially government-owned, the economic system is very open to foreign trade and foreign investment.
Major roadblocks to doing business with Niger consist of the small size of its market and low per capita income. The economy mainly consists of subsistence agriculture and informal market activity. Niger is a part of the French-speaking West African CFA franc zone, potentially a much greater market, if regional integration activities progress. Although France is the principal foreign investor, government officials are seeking trade and investment from non-traditional sources.
For more information, do not hesitate to contact us