Niger has signed a financing agreement worth $144.7 million with the African Development Bank Group (AfDB) to expand energy access, strengthen private sector competitiveness, and support sustainable economic growth through the country’s natural resources.
The deal represents a major milestone in Niger’s partnership with the AfDB to accelerate national electrification and promote private-sector-led development.
The agreement, signed at the AfDB headquarters in Abidjan, provides budgetary support through the African Development Fund, the Bank’s concessional financing arm.
The funds will support the first phase of the Energy Sector Governance and Competitiveness Support Programme (PAGSEC), a key initiative designed to modernize Niger’s energy sector and enhance its economic resilience.
Prime Minister Ali Mahamane Lamine Zeine described the agreement as a significant step forward in Niger’s collaboration 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.”
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 crucial role in boosting 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.
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Under the PAGSEC programme, Niger aims to raise national electricity access from 22.5% to 30% by 2026 and increase the manufacturing sector’s contribution to GDP from 2.5% to 3.8%.
A central component of the initiative focuses on renewable energy, with plans to install 240 megawatts (MW) of solar capacity by 2030, including 50 MW by December 2026.
The investment is expected to reduce dependence on imported electricity, enhance energy security, and accelerate rural electrification through private-sector-led mini-grids.
Despite ongoing security and climate challenges, Niger remains one of the fastest-growing economies in the Sahel.
The government is pursuing economic diversification beyond agriculture, mining, and remittances by adding value to its uranium, gold, and oil resources while investing in renewable energy to power domestic industries.
The programme supports this diversification agenda by improving governance, strengthening tax mobilisation, and attracting private investment into the energy and manufacturing sectors, as seen on Business Insider Africa.
AfDB President Dr. Sidi Ould Tah reaffirmed the Bank’s 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.
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 attract private investment in renewable energy infrastructure.
By improving energy governance and leveraging Niger’s renewable potential, the PAGSEC initiative is expected to drive inclusive, sustainable development while strengthening the country’s economic foundations.
The AfDB continues to play a central role in supporting Niger’s reform agenda and advancing energy security, industrial growth, and resilience across the African continent.
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