Niger: Investing
According to UNCTAD's 2021 World Investment Report, FDI inflows declined from USD 717 million to USD 367 million between 2019 and 2020, mainly due to the economic and health crisis triggered by the Covid-19 pandemic. FDI stock reached USD 8.2 billion in 2020. In 2021, global FDI flows rebounded strongly, but FDI flows to African countries (excluding South Africa) rose only moderately (UNCTAD’ Investment Trends Monitor). 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 (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 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 by 2023.
Niger is ranked 132nd (out of 190 countries) in the latest available Doing Business report published by the World Bank. This represents an increase of 11 positions compared to the previous ranking. Niger has notably improved access to credit information by expanding the activities of the credit bureau and starting to provide data on utility companies. The government has adopted various measures to attract more investment. These include revising the process of obtaining building permits, strengthening the system for settling disputes relating to the execution of contracts, improving the performance of the electricity sector and improving the registration and transfer of title deeds. Adopting a new investment code, reducing the minimum capital required to start a business and improving access to water are all efforts to encourage investment, mainly in the resource sector underground, main asset of the country. The government has also improved its anti-corruption system, and has asked to reinstate the Extractive Industries Transparency Initiative. The main obstacles to FDI in Niger are the topographical drawbacks and the poor state of infrastructure. In addition, insecurity linked to Islamist armed groups in Libya, Mali and Nigeria (AQIM, Mujao and Boko Haram) is a particularly worrying factor for potential investors.
| 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 | 2019 | 2020 | 2021 |
|---|---|---|---|
| FDI Inward Flow (million USD) | 717 | 361 | 755 |
| FDI Stock (million USD) | 7,135.6 | 8,182.6 | 8,274.9 |
| Number of Greenfield Investments* | 3.0 | 1.0 | 1.0 |
| Value of Greenfield Investments (million USD) | 341 | 5 | 165 |
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: February 2023
