NIGER’S INFRASTRUCTURE: A CONTINENTAL PERSPECTIVE be constructed—will boost power domestically and has the potential of supplying additional power to Niger’s neighbors in West Africa.

Scarce power infrastructure translates into regular power shortages, constraining the ability of firms to do business. In 2009 Niger suffered 21 outages a month compared to 11 outages in an average SubSaharan African country, although the duration of power outages in Niger was lower than in other parts of the continent (2 hours each versus 6 hours in Sub-Saharan Africa). Over 41 percent of Niger’s firms reported that power shortage was a large burden on business activity. Hotels were even more affected, with 70 percent of them reporting that power was a binding constraint (World Bank 2006; World Bank 2009e). Firms in Niger obtain 20 percent of their power from their own generators, compared to 25 percent in Sub-Saharan Africa. Around 6 percent of the firms’ annual turnover was lost due to electricity shortages, no better than other LICs in Africa (World Bank 2006). It takes around 4 months<sup>11</sup> on average for firms in Niger to obtain a permanent electricity connection, and costs to obtain a power connection are on average 43 times the income per capita (World Bank 2010a).

In particular, the future growth of mining is exposed to the scarcity of power infrastructure. The mining industry is responsible for over half of Niger’s export earnings, and its future is critically linked to the availability of adequate power supply for its activities. In recent years there has been rapid growth in the demand for uranium in the world market, in particular by China, to support its burgeoning electricity generation (EIU 2010). Since 1981 SONICHAR<sup>12</sup> has mined coal for the production and supply of electricity to the towns of Arlit and Akouta, and the SOMAIR and COMINAK uranium mines. At the end of 2006, the estimated remaining reserves of SONICHAR (4,933,043 tonnes) were not enough for power generation to support the mining industry, which was growing steadily in the region (World Bank 2010b). Other coal reserves that could serve as sources of electricity have recently been found. The growth of the mining industry depends on expanded generation of power to support extractive industries activity.

As power infrastructure is scarce, access rates to electricity are low in Niger, particularly in rural areas. In 2005 national access to electricity was only 8 percent of the population, one-fourth the level in comparable peer countries. Around 41 percent of the urban population is electrified in Niger, and 86 percent in LICs. Practically no one in Niger’s rural areas is electrified, while 12 percent of rural dwellers are in peer countries (table 12). Since no significant new investments were made in the sector during the period 2000–05, NIGELEC’s investment needs remain substantial (World Bank 2007b).

Low access to electricity negatively impacts Niger’s environmental sustainability. Increasing population growth, at 3.4 percent a year, compounded with low levels of access to power has furthered reliance on traditional sources of energy for domestic consumption. Reliance on traditional fuels has placed undue stress on fuel wood and, consequently, forestry resources, leading to overexploitation of the natural forest cover. Only 5,000 hectares are replanted versus 100,000 hectares of forest cleared every year (African Development Bank 2005). Households’ combustion of biomass for domestic uses also increases carbon emissions.

> 11 Getting Electricity Database 2010. The number of days to obtain a permanent electricity connection captures the median duration that the electricity utility and experts indicate is necessary, in practice (rather than required by law), to complete a procedure.

> 12 Société Nigérienne de Charbon.

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