The government of Niger and the African Development Bank Group (AfDB) have signed a financing agreement worth $144.7 million to expand energy access and strengthen private sector competitiveness as the country works to harness its vast natural resources for sustainable economic growth.
- Niger government and AfDB signed a $144.7 million agreement to enhance energy access and competitiveness.
- The funding via the African Development Fund will support Niger’s energy sector modernization and economic resilience.
- The program aims to improve electricity access, promote renewable energy, and boost industrial contribution to GDP.
- AfDB reaffirms its commitment to support Niger’s development efforts, focusing on inclusion and stability initiatives.
The new financing marks a major step in Niger’s collaboration with the African Development Bank to accelerate national electrification and promote private-sector-led growth.
The agreement, signed at the AfDB headquarters in Abidjan, provides budgetary support through the African Development Fund, the Bank’s concessional financing arm.
It will fund the first phase of the Energy Sector Governance and Competitiveness Support Programme (PAGSEC), a flagship initiative aimed at modernising Niger’s energy sector and boosting economic resilience.
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Strengthening Cooperation
Speaking at the signing ceremony, Prime Minister Ali Mahamane Lamine Zeine described the agreement as a major step in Niger’s partnership with the Bank.
“It is with great pleasure that we have just formalised this agreement, which is very important for Niger,” he said. “The agreement is part of our strong cooperation with the African Development Bank Group.” He said.
Prime Minister Zeine, who also serves as Niger’s Minister of Economy and Finance and Governor of the AfDB for Niger, added that the programme would play a vital role in improving competitiveness and economic stability.
“Our Bank’s support came at an important time, and the process has now led to the establishment of this programme, which aims to support Niger’s economic competitiveness and resilience to multiple shocks through improved access to energy, promotion of the private sector, consolidation of the fiscal framework, and better consideration of vulnerable groups within public policies,” he said.
Expanding Access and Renewable Capacity
Under the PAGSEC programme, Niger aims to increase national electricity access from 22.5% to 30% by 2026, while raising the manufacturing sector’s contribution to GDP from 2.5% to 3.8%.
A major component of the programme focuses on renewable energy development, with plans to install 240 megawatts (MW) of solar capacity by 2030, including 50 MW by December 2026.
The investment is expected to reduce the country’s dependence on imported electricity, strengthen energy security, and accelerate rural electrification through private-sector-driven mini-grids.
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Supporting Economic Diversification
Despite ongoing security and climate-related challenges, Niger remains one of the fastest-growing economies in the Sahel. The government is working to diversify growth beyond agriculture, mining, and remittances by adding value to its uranium, gold, and oil resources and investing in renewable energy to power local industries.
The programme supports this diversification agenda by improving governance, enhancing tax mobilisation, and attracting private investment into the energy and manufacturing sectors.
AfDB Reaffirms Commitment
AfDB President Dr Sidi Ould Tah reaffirmed the Bank’s continued commitment to supporting Niger and other regional member states in their development efforts.
“I can assure you that the African Development Bank Group will remain, as it has always been, a strong supporter of all our regional member states in their pursuit of harmonious development and shared prosperity,” he said.
“I would like to take this opportunity to congratulate the Bank’s teams for their hard work and also to thank the Board of Directors for its support for our efforts.” he added.
Promoting Inclusion and Stability
The programme places strong emphasis on social inclusion, targeting women, youth, and more than 507,000 internally displaced persons affected by insecurity in the Sahel. It also seeks to update national energy policies and establish high-level coordination mechanisms to foster private investment in renewable energy infrastructure.
By strengthening energy governance and leveraging Niger’s renewable potential, the PAGSEC initiative is expected to promote inclusive and sustainable development.
The AfDB continues to play a central role in supporting Niger’s reform agenda and driving energy security, industrial growth, and resilience across Africa.
