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Niger, a landlocked country in West Africa, faces a complex economic landscape due to its heavy dependence on the livestock sector and agricultural activities.

More recently, the country has faced economic challenges, including a coup in 2023, which led to sanctions and slowing economic growth.

This report provides a comprehensive overview of Niger's economy, analyzing key sectors, natural resources, challenges and future prospects.

1- Niger’s GDP

Niger is one of the poorest countries in the world, facing challenges such as minimal government services, insufficient funds for development, and exposure to recurring climate shocks.

According to World Bank data, Niger’s gross domestic product in 2022 reached about $15.34 billion

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Niger ranks No. 133 in the GDP classification of 196 countries.

The country's per capita GDP reached $608 in 2022, which is $17 higher than in 2021.

In the ranking of countries according to per capita GDP, Niger ranks 186th in the world. By this criterion, its population is among the poorest of the 196 countries that publish their GDP.

The government is striving to diversify the economy by increasing oil production and mining projects. However, challenges remain, including a 3.6% population growth rate, declining global demand for the country's uranium, and the impact of climate shocks on pastoralists, one of the most vulnerable populations.

2- The most important wealth in Niger

  • Livestock

Livestock is the cornerstone of Niger's economy, generating about 14% of GDP annually and supporting 29% of the population.

Despite its importance, this sector faces challenges such as drought, pests and diseases, which lead to significant losses during periods of environmental stress. At a time when more than 87% of the population practices livestock raising activities. 

According to the country's Ministry of Agriculture and Livestock, the total number of livestock species (excluding poultry) in 2019 was estimated at 50.5 million heads. The value of livestock in Niger is estimated at more than 4 trillion West African Francs (FCFA) (about $7 billion).

  •  Agricultural wealth

Agriculture, the lifeline for about 80% of Niger's population of 17.8 million, produces 4.5 million tons of crops annually.

Millet, sorghum, rice, onion, cowpea, groundnut, sweet potato and cotton are the main crops.

Millet, a staple food, covers 80% of the agricultural area, while onions are a profitable cash crop in the country.

3- Natural resources in Niger

  •  Uranium

Niger is the fourth largest uranium producer in the world, contributing more than 70% of its exports. Its extraction is dominated by French companies, with the Imorarin mine holding significant reserves.

Niger's uranium production in 2012 amounted to about 4,821 tons, and in 2022 it reached 2,020 tons of uranium, which is equivalent to 5% of global production.

Uranium contributes less than 10% of the gross domestic product, according to international economic reports. It ranks second in Niger's exports after gold.

Uranium was discovered in Niger in the Aziliq region in the late 1950s. Subsequently, more uranium was discovered at Madawela, Imorarin and Tassa.

Official sources in Niger report that the Imorarin mine - the largest mine - contains more than 100 million tons of metal.

French companies continued to monopolize the Nigerian uranium mining concession, and the “Urano” company is considered the owner of the concession, and the “Sorim” company and the “Subamine” company work alongside it, according to a Reuters report.

In addition to French companies, there are other Canadian, African and Chinese companies.

The most famous mining sites are:

  • Arlit is located in the northwest of the country and has many open-pit mining sites near the city.

  • The Akuta mine, located southwest of Arlit, close to Akukan, produced 75,000 metric tons of uranium from 1978 until March 2021, when it was closed after exhausting its ore reserves.

  • Imorarin Mine: Located about 50 miles south of Arlit on one of the largest reserves in the world, according to Orano. A permit to operate the mine was granted in 2009, but work on operating the mine was suspended in 2014 until uranium prices improved.

    • gold

    Gold deposits are found in the southwestern region of Niger and more recently in the northern region of Agadez. The country's first commercial gold mining began in 2004 at the Samira Hill gold mine operated by the Liptaco mining company, a joint venture between the government and two Canadian companies.

    The discovery in 2014 of another commercially viable gold deposit in the Agadez region enhanced Niger's potential as one of Africa's major gold producers.

    The Samira Hill mine is considered one of the most important gold mines in Niger. It was opened in 2004 and is located in the Tira region within the Tillaberi region.

    In 2014, new gold deposits were discovered in commercial quantities, in the "Gado" region, 700 kilometers from Agadez, and in the "Ebel" mountain region, 360 kilometers from Agadez, and work has not yet begun in these two sites.

    There are potential areas such as the Koma Bango region, which has gold deposits that the government considers commercially unviable, and the Irmasif region, where GeoAfrica has a gold prospecting license, according to the Rare Gold website.

    According to data from the World Gold Council, Niger’s production reached 34.5 tons of gold in 2022.

    • Iron and phosphate

    Niger has large reserves of:

  • Iron ore (9.2 billion tons)

  • Phosphate (1.225 billion tons)

    • Oil and natural gas

    Niger has huge oil reserves. Oil was discovered for the first time in the Tentoma and Aghadim fields, and statistics from the Savna International Energy Company indicate that the field could contain at least one billion barrels of oil.

    Most of the oil extracted in Niger is processed in the Suraz refinery. The current production capacity of oil in Niger is 20 thousand barrels per day, and it is mainly sold locally, with some also exported to northern Nigeria.

    Most of Niger's identified reserves are located in the Agadem region, which currently supplies about 15,000 barrels of oil per day to the Soraz refinery.

    Some energy companies estimate that there are 3,754 million barrels of oil reserves and 957 million barrels of recoverable oil reserves.

    Current gas reserves are estimated at about 34 billion cubic meters, including extractable reserves amounting to 24 billion cubic meters, according to statistics from the Ministry of Minerals in Niger.

     3- Who benefits from Niger’s wealth?

    France maintained a monopoly on uranium extraction in Niger. According to many reports, the percentage that Niger received did not exceed 5% at the beginning.

    After protests by citizens and some political forces, Niger's share became 15%.

    Reports also confirm that France extracted an estimated 110 tons between 1971 and 2012, providing 35% of France’s electricity needs.

    Despite the enormous resources that the country possesses, human development reports issued by the United Nations classify Niger as the poorest country in the world, with a total per capita national income of $608 in 2023.

    According to World Bank statistics, 44.5% of Niger’s population lives in extreme poverty, and the public debt is 45%, and about 173 humanitarian organizations provide multi-sectoral emergency aid throughout the country, including hard-to-reach areas, according to the United Nations.

    4- Economic trends in Niger after the coup

    After the coup of July 26, 2023, Niger’s economy faced great difficulties, due to its weakness to begin with, and the repercussions of the coup, for a number of factors:

    • ECOWAS Sanctions

      : The Economic Community of West African States (ECOWAS) imposed harsh economic sanctions on Niger in the wake of the coup. These sanctions have significantly affected the country's ability to access international financial markets and conduct banking transactions.

    • Cutting international aid

      : Major partners such as the European Union cut their support immediately after the coup. The European Union had allocated $554 million to development projects in Niger between 2021 and 2024. Washington also cut off by suspending most support programs, with an estimated value of about $500 million, thus reducing budget support. On the country's budget and its ability to implement development projects.

    Overall, Niger's GDP was expected to grow by 11% in 2023, according to the African Bank, but the coup and the sanctions that followed were expected by the relevant authorities to not exceed 2.3%, and thus the sanctions will add nearly a million people to the list of extreme poverty.

    5-Future expectations for Niger’s economy

    The transitional authorities in Niger stopped the export of gold and uranium to France as punishment after the coup of July 26, 2023. French companies had been extracting Nigerian uranium since 1970, and the first apparent changes were the large difference in the price of uranium, as the price of a kilogram was equal to 0.8 dollars, and after stopping the sale to France, it became... 200.

    According to numerous reports, French companies were selling it for $200 per kilo, while Niger received only $11 of the value.

    According to global economic forecasts, Niger's economy will become the fourth most developed global economy in 2024, and will rank first in Africa in terms of growth rate.

    Source: Al Jazeera