Niger: Investing
According to UNCTAD's World Investment Report 2023, FDI inflows to Niger stood at USD 581 million in 2022, relatively stable compared to the previous year and still above the 2018-20 average (USD 515 million). At the end of the same period, the FDI stock amounted to USD 8.23 billion, around 54.1% of GDP. The mining sector, in particular uranium, has traditionally taken the lion's share of foreign direct investment in Niger. However, uranium production will fall following the closure of the Akouta mine and the depletion of uranium mines (Coface). According to Coface, the construction, services (telecommunications), and mining sectors should become the main recipients of investments, with the intensification of projects such as the construction of the hydro-agricultural dam at Kandaji, the rehabilitation of Niamey airport, or even the construction of the Garadawa cement plant. The construction of a 2,000 km pipeline by the China National Petroleum Corporation is expected to enable Niger to become an oil exporter in 2024.
Niger's FDI has risen in the past decade, with the government actively pursuing measures to enhance its business environment and attract foreign investors. Reforms aimed at liberalizing the economy, promoting privatization, and establishing new export processing zones have been gradually implemented. In 2017, the High Council for Investment was formed to facilitate and advocate for FDI. Additionally, in 2018, the Government of Niger introduced the Guichet Unique du Commerce Exterieur, an electronic platform aimed at simplifying import-export procedures. In Niger, both foreign and domestic private entities have the freedom to establish and own businesses, with some restrictions imposed by the government. The Government of Niger (GON) imposes limitations on foreign ownership and control in critical sectors like energy and minerals for reasons of national security. In the extractives sector, companies awarded mining permits, whether foreign or domestic, must allocate a minimum 10% share to the government, with the possibility of the government acquiring up to a 33% stake in their operations. These regulations have remained unchanged since the last ICS report. Additionally, there are general regulations regarding foreign land ownership, requiring authorization from the Ministry of Planning. On the negative side, potential investors find Niger's small markets, inadequate infrastructure, bureaucratic hurdles, scarcity of local capital, and expensive transportation deterring. Moreover, they note challenges such as the limited availability of skilled labor, unclear regulations, and unreliable supply chains. Child labor is also a persistent issue. Overall, Niger ranks 125th among the 180 economies on the 2023 Corruption Perception Index and 128th out of 184 countries on the latest Index of Economic Freedom.
| Niger | Sub-Saharan Africa | United States | Germany | |
|---|---|---|---|---|
| Index of Transaction Transparency* | 7.0 | 5.5 | 7.0 | 5.0 |
| Index of Manager’s Responsibility** | 1.0 | 3.5 | 9.0 | 5.0 |
| Index of Shareholders’ Power*** | 5.0 | 5.5 | 9.0 | 5.0 |
Source: Doing Business - Latest available data.
Note: *The Greater the Index, the More Transparent the Conditions of Transactions. **The Greater the Index, the More the Manager is Personally Responsible. *** The Greater the Index, the Easier it Will Be For Shareholders to Take Legal Action.
| Foreign Direct Investment | 2020 | 2021 | 2022 |
|---|---|---|---|
| FDI Inward Flow (million USD) | 361 | 595 | 581 |
| FDI Stock (million USD) | 8,182.6 | 8,122.0 | 8,237.7 |
| Number of Greenfield Investments* | 1.0 | 1.0 | 2.0 |
| Value of Greenfield Investments (million USD) | 5 | 165 | 42 |
Source: UNCTAD - Latest available data
Note: * Greenfield Investments are a form of Foreign Direct Investment where a parent company starts a new venture in a foreign country by constructing new operational facilities from the ground up.
| Personal income tax (calculated monthly) | Progressive rates from 1% to 35% |
| From XOF 0 to 25,000 | 1% |
| From XOF 25,001 to 50,000 | 2% |
| From XOF 50,001 to 100,000 | 6% |
| From XOF 100,001 to 150,000 | 13% |
| From XOF 150,001 to 300,000 | 25% |
| From XOF 300,001 to 400,000 | 30% |
| From XOF 400,001 to 700,001 | 32% |
| From XOF 700,001 to 1 million | 34% |
| Above XOF 1 million | 35% |
| Niger | Sub-Saharan Africa | United States | Germany | |
|---|---|---|---|---|
| Number of Payments of Taxes per Year | 41.0 | 36.6 | 10.6 | 9.0 |
| Time Taken For Administrative Formalities (Hours) | 270.0 | 284.8 | 175.0 | 218.0 |
| Total Share of Taxes (% of Profit) | 47.2 | 47.3 | 36.6 | 48.8 |
Source: Doing Business - Latest available data.
| Setting Up a Company | Niger | Sub-Saharan Africa |
|---|---|---|
| Procedures (number) | 4.00 | 7.51 |
| Time (days) | 10.00 | 21.30 |
Source: Doing Business.
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Latest Update: May 2024
