AfDB, Niger Sign $144.7m Deal to Boost Energy Access and Private Sector Growth

The African Development Bank Group (AfDB) and the Government of Niger have signed a $144.7 million financing agreement to accelerate energy access, strengthen governance, and enhance private sector competitiveness. The agreement, signed at AfDB headquarters in Abidjan, reflects the Bank’s continued support for Niger’s economic transformation and resilience-building efforts.

Expanding Energy Access and Renewable Power

The financing comes from the African Development Fund (ADF), the Bank’s concessional window, and will fund Phase 1 of the Energy Sector Governance and Competitiveness Support Programme (PAGSEC). The programme is designed to increase Niger’s national electricity access rate from 22.5% today to 30% by 2026, while positioning the energy sector as a driver of industrial growth.

A central priority is the development of renewable energy capacity, with Niger planning to install 240 MW of solar power by 2030, including 50 MW by December 2026. This expansion will reduce the country’s reliance on imported electricity, diversify its energy mix, and support rural electrification through private-sector-led mini-grid projects.

Statements from Leaders

Niger’s Prime Minister Ali Mahamane Lamine Zeine, who also serves as Minister of Economy and Finance and Governor for Niger at the Bank, described the agreement as transformative:

“Our Bank's support came at an important time. This programme will improve access to energy, promote the private sector, consolidate the fiscal framework, and ensure vulnerable groups are considered within public policies. It is part of our strong cooperation with the African Development Bank Group.”

AfDB President Sidi Ould Tah reiterated the Bank’s commitment to Niger: “I can assure you that the African Development Bank Group will remain, as it has always been, a strong supporter of our regional member states in their pursuit of harmonious development and shared prosperity.”

Driving Private Sector Competitiveness

Beyond energy, PAGSEC aims to boost Niger’s industrial and trade competitiveness by:

• Raising the manufacturing sector’s contribution to GDP from 2.5% to 3.8% by 2026.

• Promoting dialogue between government and private businesses through public-private partnerships (PPPs).

• Supporting the adoption of an industrial and trade policy to diversify the economy and attract investment.

• Enhancing fiscal governance through better tax revenue mobilization, arrears clearance, and stronger financial management systems.

Prioritizing Social Inclusion

With over 507,000 internally displaced people (IDPs) in Niger due to ongoing insecurity in the Sahel, PAGSEC includes a strong social inclusion component. Special provisions target IDPs, women, and youth, offering economic and social support to help vulnerable groups access opportunities in energy and private enterprise.

High-level coordination mechanisms will also be established to ensure effective policy alignment, with updated national energy strategies to encourage private sector participation in renewables and rural electrification projects.

Building Sustainable Development Pathways

By combining energy access expansion, fiscal reforms, and private-sector strengthening, PAGSEC positions Niger to harness its vast solar potential and build more resilient, inclusive growth systems.

The financing package demonstrates AfDB’s strategic approach in Niger, linking sustainable energy infrastructure with good governance, industrial diversification, and social equity.

As the programme moves forward, Niger aims not only to boost electricity access but also to enhance competitiveness, create jobs, and build resilience in the face of economic, security, and climate challenges.