Niger Economic Structure
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Highly dependant on international aid, Niger is one of the poorest countries in the world and ranks almost last on the United Nations Development Fund index of human development. Subsistence crops, livestock and uranium deposits play a significant role in this landlocked, Sub-Saharan nation’s economy. Although the country has huge deposits of uranium, its economic growth has often been hindered by droughts, desertification and high population growth.[br]
Significant debt relief from the IMF and other international bodies has enabled Niger to focus and spend on basic healthcare, primary education, poverty reduction and infrastructure development. As a member of the World Trade Organization, Niger is committed to trade liberalization and the promotion of foreign investments. The country witnessed a significant increase in foreign direct investment (FDI) in its mining segment in 2007. Niger shares a common currency, the CFA franc, and a common central bank, the Central Bank of West African States (BCEAO), with six other members of the West African Monetary Union.
Niger Economic Structure: Major Contributors
The global economic crisis of 2007-2009 and the consequent decline in demand and the prices for uranium resulted in a lower GDP growth rate of 3.2% in 2009. Niger’s GDP growth rate had risen from 3.1% in 2007 to 9.5% in 2008 largely due to a good harvest and agricultural output.
While nearly 90% of Niger’s population is engaged in the agriculture segment, it contributes close to 40% of the GDP. The country’s major agricultural products are cowpeas, cotton, peanuts, millet, sorghum, cassava (tapioca), rice, cattle, sheep, goats, camels, donkeys, horses and poultry.
Uranium mining, cement, brick, soap, textiles, food processing, chemicals and slaughterhouses are the main industries in Niger. These units employ nearly 6% of the country’s population, while contributing around 17% of the country’s output.
Niger’s service segment plays an important role and is very efficient since it employs only a very small proportion of the country’s population while contributing over 45% of the GDP.[br]
While uranium exports are the biggest contributor to Niger’s exports, livestock products also contribute significantly to the country’s foreign exchange earnings. The country’s ability to successfully exploit its extensive resource base of oil, gold, coal and other mineral resources will determine its growth prospects.
