The African Development Bank Group and the government of Niger have signed a $144.7 million financing agreement aimed at enhancing energy access and private sector competitiveness in the country. The agreement, which was signed at the Bank’s headquarters in Abidjan, provides budgetary support from the African Development Fund, the Bank Group’s concessional financing window.
The funding will be used to implement Phase 1 of the Energy Sector Governance and Competitiveness Support Programme, a transformative program designed to improve Niger’s energy sector. According to Niger’s Prime Minister, Ali Mahamane Lamine Zeine, the agreement is a significant step forward for the country, and is part of the strong cooperation between Niger and the African Development Bank Group.
The support from the African Development Fund is expected to increase national electricity access from 22.5% to 30% by 2026, while also boosting the manufacturing sector’s contribution to GDP from 2.5% to 3.8%. The program also focuses on developing renewable energy capacity, with plans to generate 240 MW of solar power by 2030, including 50 MW by December 2026.
In addition to improving energy access, the program will strengthen public financial management systems, enhance tax revenue mobilization and control systems, and support the clearance of domestic arrears. It will also promote public-private partnerships dialogue and the adoption of an industrial and trade policy to bolster Niger’s private sector.
The program prioritizes social inclusion, with specialized support for internally displaced persons, women, and young people. With over 507,000 internally displaced people in Niger due to security challenges in the Sahel region, the program aims to cushion vulnerable communities through a social and economic inclusion program.
The African Development Bank Group’s President, Sidi Ould Tah, assured that the Bank will remain a strong supporter of its regional member states in their pursuit of harmonious development and shared prosperity. The signing of the agreement marks a significant step forward for Niger, and is expected to have a positive impact on the country’s economic competitiveness, energy security, and governance.
