WT/TPR/S/118 Trade Policy Review
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IV. TRADE POLICY BY SECTOR1
(1) OVERVIEW
1. Niger’s economy is mainly based on agriculture, livestock breeding, forestry and fishing, in
which a large number of the rural population is also involved.  The sector's share of trade in goods is
considerable even though difficult to circumscribe because of the importance of informal trade
channels.
2. Since the end of the uranium boom in the early 1980s, Niger has gradually abolished its
policies of intervention and support for priority agricultural subsectors in order to lower the budget
deficit and, since 1996, State enterprises in this sector have been included in the privatization
programme.  Currently, expanding the marketing of agricultural and livestock products, particularly
through exports, is the central focus of the poverty reduction strategy (PRS) adopted in early 2002.For this purpose, the Government intends to support the development of promising branches (for
example, cowpeas, cattle on the hoof, meat, hides and skins) through an investment programme that
focuses on the provision of public assets (infrastructure, social and health requirements,
support/advice).
3. For a long time, uranium was Niger’s main mineral wealth, but its importance has declined
sharply.  The future appears uncertain because of the high cost of production and the questions
affecting nuclear power in Europe, but the authorities view the future of Niger’s uranium with greater
optimism.  Niger nevertheless hopes to promote foreign investment in the mining sector in order to
diversify the substances exploited and provides fiscal incentives for this purpose.  Obstacles to foreign
investment in the mining sector include: difficult access to the areas with mining or petroleum
potential because of the desert conditions and the lack of infrastructure; high energy costs for the
industrial processing of mineral substances; and Niger’s landlocked situation.  Niger intends to boostthe mining sector through an investment prog ramme amounting to around €35 million.  Small-scale
exploitation, for example gold panning, is very dynamic.
4. Niger’s industrial activities are not highly developed and centre essentially on the agro-food
subsector.  The trade policy adopted by the WAEMU and introduced by Niger encourages on-the-spot
processing by imposing higher taxes on finished products than on inputs, including machinery andequipment.  In order to encourage investment in this sector, Niger is offering advantageous fiscal
terms under the Investment Code.  According to the authorities, however, development of this sector
is hindered by many obstacles, including the high cost of production, difficult access to financing,
fiscal pressure on enterprises in the formal sector and competition from the informal sector, including
illegal international trade.
5. The PRS focuses on diversification of tourism products, including cultural and ecotourism.
Since 1996, the number of tourists has increased sharply.  The development of Niger’s tourism
potential could help to reduce poverty because of its high labour intensity, its location in rural areas
and the positive impact of producing handicrafts and other related activities.  In order to foster
investment in this sector, Niger is offering prefer ential fiscal terms under the Investment Code and the
tourism sector is one of the commitments undertaken by Niger under the GATS.
6. Niger has not, however, taken full advantage of the opportunities offered by the GATS as
regards telecommunications services and financial services, on which no commitment has been made.
                                                     
1 The basic sources used to prepare this chapter ar e the documents provided to the WTO Secretariat by
the authorities of Niger: Economic Recovery Programme (Law No. 97-024 of 8 July 1997), Government ofNiger (2002), and Rural Development Strategy, preliminary document, March 2002.  See also IMF (2002).Niger WT/TPR/S/118
Page 55
The traditional operator in the telecommunications sector was privatized in 2001, but has retained its
monopoly of fixed telephony, which greatly reduces the benefits to consumers.  Two operators have,
however, bought licences to provide mobile telephone services.
7. The banking sector went through a significant crisis from 1990 onwards, which greatly
reduced loan opportunities in Niger’s economy a nd it is currently subject to the common regulations
of the WAEMU.  The banking sector has recovered, but it only plays a marginal role in Niger’seconomy, particularly as regards the key sector of agriculture.  In order to offset the lack of credit for
the private sector and lessen banking risks, the Government of Niger has put in place a guarantee
programme which it would like to develop.
(2) 
AGRICULTURE , LIVESTOCK , FORESTRY AND FISHING
(i) Overview
8. Niger covers an area of 1,267 million km2.  Around 65 per cent is in the Sahara and, in view
of the low rainfall, there is little rain-fed agriculture, the emphasis being more on the breeding of
livestock, handicrafts, tourism, mining and trade.  In other areas, the activities are breeding livestock
and rain-fed agriculture, but the choice of crop depends above all on rainfall, which can vary greatly
from year to year.  Potential agricultural land is estimated at 150,000 km2, of which around 40 per
cent is cultivated, and irrigated land is estimated at 270,000 km2, of which 20 per cent is being used.
The latter potential could be enhanced by making greater use of the water resources of the Niger
River.
9. The grazing area covers 240,000 km2.  The national herd is estimated at over 500 million
Tropical Cattle Units (TCU) and is composed of bovine animals, sheep, goats, camels, horses and
donkeys and asses;  poultry also has important potential.  Niger’s forested area is estimated at
27,000 km2, most of which is marginal and used mainly for domestic purposes. Niger also has
aquaculture potential, with an estimated area of 65,000 km2 covered by water that is barely exploited.
10. Most agricultural activities are carried out by farmers working on small family farms near
villages using traditional methods.  The main crops are millet and sorghum with the majority of
production being used for household consumption.  The principal cash crops are cowpeas,
groundnuts, sesame, onions and cotton.  Around 20 per cent of the labour force works instockbreeding and its contribution to GDP is some 10 per cent, while live animals are the second
largest export (Chapter I(4)).
11. The 2001-2002 agricultural season showed a net improvement in comparison with the
preceding season and this greatly helped Niger’s economic growth rate and the supply of basic
foodstuffs to the population.  Cereal production rose from 1.8 million tonnes (net) in 2000-2001 to2.6 million tonnes in the 2001-2002 season.  The performance in cereals also has an impact on
international trade because of the population’s overall needs, estimated to be 2.5 million tonnes.
Niger is a net importer of rice (160,000 tonnes during the 2001-2002 season).  The surplus in the
domestic production of cereals is used to stabilize prices by constituting a national buffer stock.
12. Farmers face a number of major structural problems.  The first is the drop in yields per
hectare as a result of the expansion of crop growing into inappropriate areas.  This has been made
necessary by the strong demographic pressure because farming methods are still traditional (few
inputs, low level of mechanization).  Another problem is the rural population’s very limited access to
financial services and information, as well as the lack of organization.  The third problem is the
difficulty of developing commercial outlets because of land transport problems and logisticalWT/TPR/S/118 Trade Policy Review
Page 56
difficulties.  Over time, these effects have combined to keep the farmer in a state of poverty, which
has increased the trend towards a rural exodus.2
(ii) Agricultural policy
(a) Background
13. From 1960 to 1973, the Government of Niger focused on exports by promoting cash crops
(groundnuts and cotton), establishing marketing bodies (SONARA, SONIPRIM, SONERAN, SNCP,SICONIGER, COPRONIGER, SONITAN), and agro-industrial processing units (oil mill at Maradi,
cotton ginning plant at Madaoua).
14. Following the serious drought in 1973, Niger took advantage of the uranium boom between
1973 and 1980 to introduce a policy in support of the agricultural sector so as to promote greater self-
sufficiency (subsidized prices and inputs, agricultural loans, development of the rural infrastructure).Despite this support policy, production of groundnuts, which was Niger’s most important cash crop in
1962, fell sharply.  From the late 1980s onwards, the end of the boom and the efforts made to stabilize
government finance incited the State to abandon interventionist policies and turn to combating
desertification, promoting irrigation and the sustainable management of natural resources.
15. Since 1992, Niger’s economic development strategy has refocused on the rural sector, which
has become a priority for government investment.
3  The sector has also been given a new legal
structure4, new opportunities for the rural population to become organized5, and new support
structures at the State level.  Support has focused above all on irrigation, the management of natural
resources, support for farmers and livestock breeders at the sanitary and phytosanitary levels.  The
State’s withdrawal from the agricultural sector co ntinued with the privatization programme in 19966;
the Niger Cotton Company (SCN) and the Niger Milk  Board (OLANI) were privatized and only two
State enterprises were left, the Niger Rice Company (SRN)7 and the Niamey Refrigerated
Slaughterhouse, both included in the privatization programme.
16. The rural sector is at the heart of the 1997 Economic Recovery Programme.8  Since 2000, the
strategy for the development of the rural sector has been revised as part of the formulation of the
poverty reduction strategy paper (PRSP), finalized in early 2002.9  It is noted that 83 per cent of
Niger’s population lives in rural areas, where the majority of poor people in Niger (86 per cent) are tobe found.  Consequently, poverty reduction necessarily implies stronger and more sustainable growth
of rural activities, in particular, agriculture and livestock breeding.
17. In the PRSP, emphasis is laid on better marketing of agricultural and livestock production by
seeking and developing markets (including export markets), and on promoting the opening up of
production areas in the interior by developing the road network and transport services.  Niger intendsto develop the export of agricultural products to WAEMU countries, neighbouring countries and the
subregion (Central Africa, Ghana).  Nigeria exem pts local products of Niger origin from duty,
pursuant to the provisions of the ECOWAS, but Niger indicates that bureaucratic problems are the
                                                     
2 The proportion of people living in cities rose from 5 per cent in 1960 to 17 per cent in 1995.
3 Ordinance No. 92-030 of 8 July 1992.
4 Ordinance No. 93-015 of 2 March 1993 ("Rural Code").
5 Ordinance No. 96-067 and its Implementing Decree No. 096/PRN/MAG/EL of 9 November 1996.
6 Ordinance No. 96-062 of 22 October 1996.
7 Unit processing rice produced by domestic pr oducers. See Chapter III(2)(x) on State trading.
8 Law No. 97-024 of 8 July 1997.
9 Government of Niger (2002).Niger WT/TPR/S/118
Page 57
main obstacles to development of these exports.  As regards trade partners, the major problems are
Niger’s landlocked situation and the high cost of transport.
(b) Current situation concerning border measures
18. There are no import prohibitions (except as regards sanitary and phytosanitary measures) and
no import licensing, but a statistical registration form is required.  Niger applies the WAEMU’s CET
to products imported from third countries on the basis of national administrative values in certaincases, as well as supplementary duties (statistical charge (RS) and community solidarity levy (PCS)).
Local products of WAEMU origin, with a certificate of origin, are free of duty.
19. The simple average of customs duties actually applied in the agricultural sector (WTO
definition) is 16.7 per cent, below the bound level of 82.2 per cent in Schedule LIII (Tables AIII.1 and
AIII.2).  It should also be noted that there is excise duty on:  tobacco and tobacco products (30 percent), beer (25 per cent) and other alcoholic beverages (45 per cent); coffee (15 per cent);  cola nuts
(15 per cent);  edible oils and fats (15 per cent).  A single VAT rate of 19 per cent also applies to
imports of the goods concerned, unless there are exemptions, which include unprocessed and staple
food products.
20. Regarding the measures applied to Niger’s exports of agricultural, livestock, forestry and
fisheries products, an export statistical charge (RSE) of 3 per cent applies, together with a special re-
export tax (TSR).  There is a 5 per cent TSR on tobacco products exported to countries that are
outside the franc zone but are members of the ECOWAS  (for example, Nigeria), and the rate is 15 per
cent to other countries outside the franc zone.  On all other products, the TSR is 10 per cent.  The
basis for these taxes is the c.i.f. value at Niger’s border, except in the case of live animals, for which
Niger has introduced taxable export values.
10
21. In practice, the majority of trade in agricultural, livestock, forestry and fisheries products is
with Nigeria, and includes a large amount of trade that goes through informal channels, which makes
it difficult for Niger to apply border measures.11
(c) Outlook
22. The Rural Development Strategy (RDS) prepared in 2002 identifies three strategic axes:  the
creation of conditions for sustainable economic growth in rural areas by giving rural producers accessto economic opportunities;  giving the rural population secure living conditions by improving food
security and the sustainable management of natural resources;  improving the organization of the rural
sector by building the capacity of institutions and rural organizations.  Regarding the first axis, the
Government has identified the following economic branches as having export potential:  onions,
cowpeas, sesame, tiger nuts, peppers, garlic, meat, hides and skins, cattle on the hoof, gum arabicaand fish.  It is stated that "the role of the State is to boost the development of these branches by
promoting their activities and the emergence of effi cient private operators capable of absorbing and
processing production surpluses and able to meet competition on regional and international
markets".
12  Niger also intends to improve coordination with non-governmental organizations
(NGOs), which make an important contribution to investment in rural areas (24 per cent in 1998) and
                                                     
10 Since 1 January 2003, the taxable values have been the following: live horses (CFAF 150,000);
bovine animals (CFAF 150,000); donkeys (CFAF 45,000); sheep (CFAF 30,000); goats (CFAF 15,000); camels(CFAF 250,000).
11 Government of Niger, Ministry of Finance (2000).
12 Rural Development Strategy (RDS), preliminary document, March 2002, p. 9.WT/TPR/S/118 Trade Policy Review
Page 58
with donors.  The State’s role will focus on providing public assets (infrastructure, social and health
needs, support/advice) and subsidization is not an option.
23. The WAEMU is currently introducing an operational common agricultural policy (CAP),
after having adopted the necessary legal framework in 2001.13  The aim of this CAP will be to boost
the development of the agricultural sector in WAEMU countries by limiting competition from imports
from outside the WAEMU.  Even though tariff protection for agricultural products under the CET isalready higher than that for non-agricultural produc ts, consideration is being given to increasing the
CET.  Surveys are already being undertaken to identify promising subsectors in each member State,
which would have preferential access to subregional markets in excess of the current levels.
(3) 
MINING
(i) Uranium and other mining resources
(a) Overview
24. Niger is the world’s third largest producer and exporter of uranium, after Canada and
Australia, and its share of global production is some 9 per cent.14  Uranium is currently produced at
two sites, one near Arlit, operated by the Aïr Mining Company (SOMAIR), and the other at Akouta,
operated by the Akouta Mining Company (COMINAK), which are semi-public companies.15  In both
cases, the terms for exploiting the uranium are set out in agreements between the State of Niger and
the companies concerned; these agreements were renewed in 2001 under the Mining Code and their
provisions cover the period 2004-2013.
25. All the domestic output is exported through the port of Cotonou in Benin to Europe or Japan.
In 2001, uranium accounted for 61.1 per cent of export earnings (Chapter I(4)) and provided 4.4 per
cent of the national budget in 2000.  Although it is still important, uranium’s contribution to Niger’s
economy has decreased since the end of the uranium boom in the 1980s.  The future is uncertainbecause of limited demand for the product and the high cost of production in Niger.
16 Niger’s
authorities nevertheless indicate that the companies concerned have made substantial efforts to bring
down costs in order to remain in the market and, in 2002, they undertook a vast mineral prospecting
programme (Tagora Project). The State is considering assisting them by removing certain external
charges and the future of Niger’s uranium can therefore be viewed with greater optimism.
26. According to the information provided by the Government of Niger, prospecting has led to
the identification of other mineral wealth which could be exploited, for example, coal, iron,
phosphates, precious metals and precious stones.17  The coalmine at Anou-Araren is operated by
SONICHAR, a State enterprise, and all its output is used to produce electric power.  The phosphate
deposits at Tahoua were exploited until 1984 to produce fertilizer for the domestic market in thefactory of the same name;  this enterprise is included in the privatization programme.  Tin, gold and
gypsum are exploited on a small scale.
27. The Government hopes to boost foreign investment in the mining sector in order to exploit its
potential. Investment goes through the Ministry of Mining and Energy, which is a single window for
                                                     
13 Additional Act No. 3/2001.
14 http://www.worldenergy.org  [24 February 2003].
15 The State of Niger has a holding of 36.6 per cent in SOMAIR and 31 per cent in COMINAK.
16 http://mbendi.co.za  [24 February 2003].
17 Government of Niger, Ministry of Mining and Energy (2001).Niger WT/TPR/S/118
Page 59
mining investment.  The legislative framework is the Mining Code18, and mining agreements which
refer to general provisions such as the Customs Code, Taxation Code and Labour Code.
28. The Mining Code states that Niger’s mining resources are State property and may not be
appropriated outside the Code’s regulatory framework.  The Mining Code applies to all categories of
mineral ore and to investors of any origin, including those from Niger.  There are four types of mining
rights: a prospection permit, a minerals survey perm it, an operating permit (for small or large mines),
and a small-scale operating permit.  The terms of validity are respectively: one year, three years, five
years (small mine) and 20 years (large mine), and two years.  Prospection permits are issued by
decision of the Director of Mining; small-scale operating permits, survey permits and permits for
small exploitations are issued in a decision of the Minister for Mining and Energy;  permits for large
exploitations are issued by decree adopted by the Council of Ministers. Survey permits and operatingpermits for large mines are issued under agreemen ts with the State.  Substances classified as
belonging to the quarrying regime are subject to special provisions similar to those on mineral
substances.
29. The law includes the taxation regime applicable to mining and this is not negotiable.  It
includes the following main elements: payment of a fixed fee for applications for mining rights;annual royalty on the area covered for operating permits, small-scale exploitation permits, and permits
to open and operate quarries;  mining tax;  exemption from duties and taxes on exports, including the
statistical charge;  taxation of commercial and industrial profits (BIC) at a rate of 40.5 per cent for
companies in the operating phase, except in the case of holders of operating permits, for which a
period of exemption is granted (five years for large mines and two years for small mines);  taxation of
dividends and other sums distributed to shareholders at 16 per cent;  amortization of investment in
surveying; exemption from payment of duties and taxes on imports with the exception of thestatistical charge on machinery and equipment needed for activities, provided that these are not
available on equivalent terms in Niger;  temporary admission regime for machinery and equipment
needed for mining activities during the period of validity of the survey permit, the operating permit
and authorizations to open and operate permanent quarries.  Holders of permits issued under
agreements and authorizations to open and operate permanent quarries are eligible for a fixed taxationregime during the period of validity of the mining rights.  All enterprises working in the mining sector
must give preference to recruiting personnel from Niger and establish training programmes.
(ii) Petroleum
30. Niger does not currently produce petroleum and hydrocarbons account for around 16 per cent
of imports (Chapter I(4)).  According to the inform ation provided by the authorities of Niger, at the
beginning of the 1990s prospection indicated that there were potential petroleum reserves
(300 million barrels), but not on an operational scale (800 million barrels).
19
31. The Government of Niger hopes to encourage foreign investment in petroleum prospection in
the blocks at Kafra, Bilima, Tamesna, Tounfalis and Djado.  The Ministry of Mining and Energy
constitutes a single window for mining investment and deals with all relevant matters.  The regulatoryframework is the Petroleum Code
20, revised and amended in 1992 and 1997 respectively and currently
being revised again.  Investors must also observe generally applicable laws and regulations such as
the Customs, Taxation and Labour Codes.
                                                     
18 Ordinance No. 93-016 of 2 March 1993.
19 Government of Niger, Ministry of Mining and Energy (20002).
20 Ordinance No. 92-045 of 16 September 1992. It does not apply to the prospection and exploitation of
petroleum by enterprises holding agreemen ts concluded before it came into effect.WT/TPR/S/118 Trade Policy Review
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32. The Petroleum Code specifies that Niger’s hydrocarbon resources are State property and may
not be appropriated outside the Code’s regulatory framework.  The Petroleum Code applies to all
investors of any origin, including those from Niger.  There are four types of rights: prospection
permits, survey permits, provisional operating permits, and concessions.  The terms of validity are
respectively: six months, four years renewable for two further periods of three years each, two years
during the period of validity of the survey permit, and 15 years, renewable.  Permits for prospecting,surveying and provisional operating permits are issued by decree of the Minister responsible for
hydrocarbons.  Survey permits and operating concessions are issued by decree adopted by the Council
of Ministers under agreements with the State.
33. Concessions cover the operation of the deposit, transport within Niger (including the building
of infrastructure for this purpose) and the enterprise’s right to market its share. The State markets itsshare of output through a State body set up for this purpose. SONIDEP has a monopoly of imports of
petroleum products through formal channels and is responsible for storage, while prices are fixed at
the government level.
34. The law includes the taxation regime applicable to petroleum activities and this is not
negotiable.  The regime includes the following main elements:  the concessionaire pays a single exitduty equivalent to 1 per cent of the value ex-deposit for liquid hydrocarbons and 0.5 per cent of the
value ex-deposit for gas; an annual mining royalty of 12.5 per cent on the value ex-deposit for
hydrocarbons and 5 per cent on the value ex-deposit for gas; an annual royalty on the area for
prospecting or operation for which the levels are fixed in the agreement;  taxation of profits made in
Niger at 45 per cent;  exemption from payment of duties and taxes on the import of the machinery and
equipment needed for surveying and operating activities.
35. The major changes to the Petroleum Code envisaged are:  giving investors the option of
choosing between a production-sharing agreement or a concession; transport through transnational
pipelines;  a link between the royalty and output volume; increased period for prospecting and
reduced period for permits; harmonization of regulatory texts on issuing permits.
(4) 
INDUSTRY
36. Niger has few industrial activities other than those related to the processing of raw materials,
in particular the agro-food sector (23 per cent of industrial activity), chemicals and building materials.
The industrial sector (excluding mining and energy) comprised only 131 units in 2002 (including
bakeries).  A large number of activities are, however, in the informal sector.
37. The following structural obstacles to the sector’s development were identified by the
Government of Niger when it drew up the Economic Recovery Programme in 1997:  high productioncosts (energy, transport, imported inputs); the permeability of borders, which allows the import of
duty-free goods produced under more advantageous conditions; fiscal pressure on enterprises active in
the formal sector, which makes it difficult for them to compete with those in the informal sector;  bad
technological choices;  lack of support structures;  and lack of qualified personnel.  This finding led to
the preparation of the National Framework Programme for the Promotion of the Private Sector(PCNPSP), which is still the basic instrument fo r action taken by the Ministry of Trade. When
drawing up the PRSP, the Government also identified lack of access to finance as a structural obstacle
to development of the private sector.
38. In order to boost investment in this sector, Niger provides incentives under the Investment
Code (Chapter III(4)(ii)).  Nevertheless, the Gove rnment has noted that "the exemptions it provides
encourage the importing of intermediate goods rath er than buying them on the spot" and "exemptionsNiger WT/TPR/S/118
Page 61
for equipment give precedence to capitalist investment over highly labour-intensive projects".21  It has
to be acknowledged that the Code has had little impact on the number of industrial units since it was
introduced in 1987. The Ministry of Trade also draw s attention to the programmes Business in Niger
(EAN), the Project for Support and Follow-up of Small and Medium-Sized Enterprises (PASPME,
called Tanyo) and the Francophone SME Support Fund of Niger (FFS-Niger) (Chapter III(4)(v)).
39. Regarding the current situation of border measures applicable to non-agricultural products
(excluding petroleum), there are no import prohibitions nor any import licensing, but a statistical
registration form is required.  Niger applies the WAEMU’s CET to products imported from third
countries on the basis of national administrative values in certain cases, as well as supplementary
duties (statistical charge (RS) and the community  solidarity levy (PCS)).  Originating industrial
products from approved producing enterprises are completely free of duty and, where enterprises arenot approved, they receive a 5 per cent reduction in MFN customs duties.
40. The simple average of customs duties on non-agricultural products (excluding petroleum) is
11.8 per cent, below the level bound at 38 per cent in Schedule LIII (Tables AIII.1 and AIII.2).  A
single VAT rate of 19 per cent also applies to imports.  The escalation of customs duties applicable to
finished agricultural, livestock, forestry and fisheries products under the CET should also be noted(Chart III.1).  Attention should nevertheless be draw n to the informal nature of a large share of trade
in goods and the fact that domestic production does not benefit from the protection given by the CET
and VAT.
(5) 
SERVICES
(i) Telecommunications
41. In 2003, Niger’s fixed telephony network was composed of around 22,500 ordinary telephone
lines serviced by the Niger Telecommunications Company (SONITEL), which was privatized inNovember 2001.
22 The mobile telephone service was launched in 2000 with the granting of two GSM
licences to two operators:  Télécel-Niger and Celtel-Niger. International communications services and
the Internet in Niger are only supplied via satellite.
42. In 1999, it was decided to open up the telecommunications sector.23 SONITEL’s monopoly of
basic services will be abolished as from 2005, and there is free competition in value-added services.Mobile telephone operators have been guaranteed their duopoly until the end of 2004.  Access by
competitors will be controlled by the Multisectoral Authority (water, energy, transport,
telecommunications).
43. The telecommunications services sector is not one of Niger’s specific commitments under the
GATS.
24  The authorities explain that such commitments are hampered by the lack of information on
the implications of liberalization of the sector at the multilateral level.
                                                     
21 Economic Recovery Programme (Law No. 97-024 of 8 July 1997), p. 40.
22 The State has retained a 47.5 per cent share of the capital and has transferred 3 per cent to SONITEL
employees. It intends to bring its share down to 33 per cent by selling the other shares to regional investors.
23 Ordinance No. 99-045 of 26 October 1999.
24 WTO document GATS/SC/64.WT/TPR/S/118 Trade Policy Review
Page 62
(ii) Tourism25
44. Tourism in Niger focuses on three destinations: the Aïr range and the Ténéré desert (in the
Agadez region); the Park "W"-River region (Niamey, Dosso, Tillabéri); the central-east Niger region
(Tahoua, Maradi, Zinder, Diffa).  The north of the country is in the Sahara region and is the focal
point for tourists because of its natural, historical and cultural attractions. Ecotourism takes place in
the Ténéré, the Termit, the Tal, along the Komadougou Yobé, the "W" Park, and Lake Chad.
45. Tourism in the north suffered from the insecurity from 1990 onwards, but is gradually
recovering its prosperity as a result of the organization of tours made possible by the signature of
peace agreements.26  Since then, there has been sustained development in this sector as regards
arrivals at airports, hotel nights, turnover and the jobs created.  According to the data available,
250,000 tourists visited Niger in 2001, of which 50,753 came by air.
46. Under the PRSP, the authorities hope to triple the number of international tourists by 2005,
thereby increasing revenue and the turnover in hotels and restaurants and having a catalytic effect on
craft and ancillary tourist activities, which in turn will create more jobs.  Many obstacles nevertheless
hamper the development of tourism, principally the difficulty of access to financing for enterprises in
the sector, the high cost of air travel, and the competition of neighbouring countries which offersimilar tours.  The authorities hope to boost investment through the incentives given under the
Investment Code.  In order to overcome the air transport problems, the authorities have eased
formalities and other restrictive measures, notably by applying an "open skies" policy, already in
effect through the organization of charter flights and flights to the interior by private companies.
47. The tourism sector is one of Niger’s specific commitments under the GATS
27, for example,
hotel and restaurant services, travel agencies and to ur operators’ services, tourist guide services, and
certain transport services.  Niger requires investors in hotel and restaurant services to provide trainingprogrammes for employees from Niger as a prior c ondition for approval under the Investment Code.
(iii) Financial services
48. Niger’s banking sector is made up of a wide variety of institutions that deal with specific
sectors: eight commercial banks and financial establishments
28, and a decentralized financing system
whose main component is a network of popular savings and loan banks; there are five insurancecompanies, four non-life and one life, together with a network of intermediaries made up of
17 general agents and eight brokers.  The banks and financial establishments that are active are not
specialized, with the exception of the Niger Credit Bank, which finances housing.  The State has
holdings in three financial establishments.
29
49. When drawing up the PRSP, the Government identified the lack of access to financing as a
structural obstacle to development of the private sector.  When formulating the Economic Recovery
Programme in 1997, it was noted that "the services offered to customers have not evolved for several
years and action to finance the economy is not very diversified, showing increasingly less interest in
                                                     
25 Government of Niger, Ministry of Tourism and Handicrafts (2000).
26 These were concluded on 24 April 1995, 28 November 1997 and 21 August 1995.
27 WTO document GATS/SC/64.
28 The Commercial Bank of Niger, the International Bank for Africa of Niger (BIA-Niger), the Islamic
Bank of Niger for Trade and Investment (BINCI), Bank of Africa (BOA) Niger, Loan Fund for LocalAuthorities (CPCT), Niger Credit Bank, Ecobank Niger, and the Niger Bank Company (SONIBANK).
29 The Niger Credit Bank, Ecobank Niger and the Niger Bank Company (SONIBANK).Niger WT/TPR/S/118
Page 63
agriculture".30  Although the decentralized banking system is expanding considerably, its contribution
to the financing of economic activity remains marginal.
50. The banking services sector in Niger is subject to the WAEMU’s common banking
regulations and the prudential provisions developed by the WAEMU Banking Commission, which
also monitors the sector.31  Applications for approval are addressed to the Minister for Finance but
submitted to the national branch of the Central Bank of West African States (BCEAO), which sendsthem to the BCEAO’s headquarters.  The latter gives approval for credit institutions and appoints their
auditors, subject to the opinion of the Banking Commission.  This two-tier approval system may lead
to delays.  The Commission must give its opini on within a period not exceeding six months.
51. The Commission has defined the accounting procedures applicable to credit institutions and
the prudential standards for their management (solvency, liquidity, risk sharing, transformation, andcapital adequacy ratios, etc.).
32  The BCEA, on behalf of the Commission, monitors operations in
member States, with the assistance of the national authorities.
52. The common banking regulations give the Commission authority to intervene for disciplinary
reasons when a bank or financial institution (including those in the insurance sector) fails to respect
the profession’s code of good conduct, jeopardizes its financial stability, engages in irregular activitiesin a member State, or fails to meet the criteria for continued approval.  The Commission may issue the
institution in question with a warning or an injunction to take the necessary corrective measures
within a set period or any preventive measures it deems appropriate.  Any bank or financial institution
that does not obey this injunction is deemed to have violated the banking regulations and may be
liable to one or more of the following disciplinary sanctions:  a warning, a reprimand, suspension or a
ban on all or some of its operations, any other limitations on the exercise of the profession, suspension
or automatic dismissal of the directors responsible, withdrawal of approval. An appeal may belaunched against decisions of the Banking Commission by the institution concerned within a period of
one month following notification of the Commission’s decision.  The appeal is put before the Union’s
Council of Ministers. Penal or other sanctions may also be imposed.
53. The West African Monetary Union (WAMU) also created a West African Regional Stock
Exchange (BVRM) in 1998. The Regional Council for Public Savings and Financial Marketsregulates the BVRM, and is responsible for issuing authorizations and monitoring its operation.  The
Regional Council must authorize the issue of shares traded on the BVRM. No shares of companies
from Niger are quoted on the BVRM, however.
54. Niger is also party to the Inter-African Insurance Market Conference (CIMA), created within
the franc zone in 1992.
33 The CIMA Insurance Code came into effect in 1995 and lays down the
framework regulations for all land-based insurance (maritime, river and aviation insurance are
excluded from its scope).  The Regional Insurance Monitoring Commission (CRCA) is responsible
for approving enterprises supplying insurance services. A final decision is taken by decree by the
                                                     
30 Economic Recovery Programme (Law No. 97-024 of 8 July 1997), p. 31.
31 Information on the West African Banking Commission is available at
http://www.izf.net/izf/Fi chelIdentite/COBAC.htm  [21February 2001].
32 A bank may not have a direct holding in an enterprise that exceeds 25 per cent of the capital of that
enterprise or 15 per cent of its own capital base.  Moreover, effective own funds must be at least more than 8 per
cent of net risks weighted according to the quality or cat egory of the counterparty, while the maximum risk that
can be assumed under a single signature is limited to 75 per cent of effective own funds.  Lastly, 75 per cent offixed assets and other medium- and long-term uses of funds by the bank must be financed from stable resources.
33 The other members are: Benin, Burkina Faso, Cameroon, Central African Republic, Chad, Comoros,
Congo, Côte d’Ivoire, Equatorial Guinea, Gabon, Mali, Senegal and Togo.WT/TPR/S/118 Trade Policy Review
Page 64
competent national authority of Niger (the Minister for the Economy and Finance).  The CRCA may
also take disciplinary action.
55. It should be noted that the financial services sector does not appear among Niger’s specific
commitments under the GATS.34  The authorities explain that such commitments are not consistent
with Niger’s membership of the WAEMU.
                                                     
34 WTO document GATS/SC/64.Niger WT/TPR/S/118
Page 65
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United Nations Development Programme, UNDP (2002), Human Development. Available on-line at
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