Overview of best prospect sectors, major infrastructure projects, significant government procurements and business opportunities.
Last Published: 6/26/2017
  • There are currently two uranium companies (COMINAK and SOMAIR all subsidiaries of AREVA), which produced about 3,200 metric tons of uranium in 2015.  The commissioning of a third mine (Imouraren) has been postponed until 2017 or beyond, due to low uranium prices.  The current directory of exploration permits includes 121 targets for uranium, 14 for base metals, three for titanium/vanadium, and two for coal.  Estimates of the untapped mineral potential include important resources of gold (about 65 metric tons), phosphate (over 1.2 billion metric tons), iron ore (about 1.2 billion metric tons), copper (875,000 metric tons), as well as nickel, molybdenum, salt, and vanadium.
  • The mining sector has been the biggest source of FDI in the country, and accounts for about 5.8 percent of the country’s GDP.  However FDI in the mining sector was expected to slow in 2016 due to the postponement of Areva’s Imouraren mining project.
  • Niger officially became an oil producer in November 2011 with the coming on stream of three oil deposits in the Agadem basin and the commissioning of the 20,000 barrels per day (bpd) refinery at Zinder.  The estimated FDI inflows associated with the development of the Agadem oil bloc were $1.3 billion for the oil field, $350 million for an oil pipeline to Chad, and about $1.2 billion for the Zinder refinery.  In addition, the Trans-Saharan Gas Pipeline (TSGP) will expects to attract an estimated $13 billion for Niger‘s share of the cost for installing the pipeline and associated gathering centers.
  • In addition, the country‘s geologic structure offers potential for new discoveries of gold and base metals in the Precambrian formations and of uranium and oil in the sedimentary basins.  As a result of the FDI in the above projects, oil and mining exports recorded an FDI inflow of $769 million in 2014 and contributed to GDP growth of 11.2 percent in 2012 and 6.9 percent in 2014.  Significant potential for private sector development and spin-off growth exists through local content development and direct procurement of goods and services from local suppliers.
  • Livestock is one of the main foundations of Niger‘s economy, accounting for 15 percent of Niger’s GDP.  Animal husbandry is practiced by over 87 percent of the workforce.  
  • Export of live cattle and meat represents nearly 12 percent of Niger’s total exports (90 percent of which goes to Nigeria and the remaining to Cote d‘Ivoire and Gabon).  Besides the export of live animals mostly to Nigeria, meat production is also growing in Niger.  
  • There is significant potential to formalize the butchery industry and for the development of a formal private sector in meat production given the large number of small and informal butchers and the abundant availability of livestock.  Butchers are organized into seven associations/Groupement d’Intérêt Economique (GIE) in Niamey and Maradi representing both individuals and enterprises and their associations.
  • Companies involved in mining equipment manufacturing, finance and investment, geophysical mapping, consulting, and wastewater treatment facility construction are best placed to benefit from the revitalization of Niger’s mining industry.
  • There are also opportunities in the agribusiness sector for providing inputs such as fertilizers, hybrid seeds, and equipment.  Food drying or other food processing is a mostly untapped market, particularly for onions, tomatoes, peppers and fruits, as well as processing of peanuts and sesame for oil.  There is also a small market for imported processed foods and household products.
  • Export opportunities may exist for pharmaceuticals (herbal and generic drugs), heavy construction and earth-moving equipment, food processing, and coal-fired electrical generating equipment.
  • Although not currently viable, considerable phosphate deposits could eventually be exploited as regional demand for fertilizer increases.
  • There are opportunities for providing consulting and engineering services to development projects supported by the World Bank and African Development Bank, other multilateral banks, and bilateral donors. 
  • Another sector with potential is renewable energy, particularly wind and solar.  The government is exploring alternative energy sources to address the recurring shortage of electricity.
  • Niger is currently experiencing growth in the telecommunications and banking industries.  There is a growing interest from investors, exemplified by the recent entry to the market of a large Moroccan bank, Attijariwafa, as well as insurance company Colina.
  • Despite the fact that Nigeriens are relatively price-sensitive, there are opportunities in the retail sector for supermarkets and the construction of shopping malls.
  • Niger’s air transport sector remains relatively underdeveloped, and funding to upgrade facilities remains an issue.
  • Energy production must be increased substantially, as the current electricity demand is insufficient to meet the country’s needs, and the GON has drawn up a new development program, which includes the construction of new facilities and civil engineering projects.  The GON needs to reduce its present dependency on imported electricity, 70 percent of its electricity supply comes from neighboring Nigeria.  There are many opportunities to invest in the energy sector.  The National Assembly adopted a new electricity code in May 2016 to allow for private participation in energy generation and the creation of an independent sector regulator.
  • Niger is in need of strong foreign investment to modernize, upgrade, renew and expand the existing roads.  The present road system will need upgrading and expanding to cater for increased traffic from the mining and agriculture sectors.

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