Resource information
Since 1999, the Nigerien authorities
have embarked on a program of reform to develop the
financial system and ensure its stability in the wake of a
regional banking crisis. Despite this progress, much remains
to be done to bring the financial sector up to sub-regional
standards. The first step is to formulate a financial sector
development strategy that will serve as a roadmap for future
reforms. Issues of access to financial services are crucial
in Niger, in view of indicators that place Niger at the
lowest level in the Union (except for Guinea-Bissau). The
stability of the financial sector has improved, but still
requires vigilance on the part of national and monetary
authorities. The country's economic activity is based
on agriculture and services, but uranium is Niger's
main export. The primary and tertiary sectors account for 42
and 38 percent of Gross Domestic Product (GDP) respectively.
Agriculture sustains roughly 80 percent of the population.
Industrial activities are extremely limited apart from
uranium mining in the north, which accounts for 60 percent
of the country's exports on average. The medium-term
macroeconomic outlook in Niger appears favorable due to the
greater margin for budget maneuvering attributable to debt
reduction initiatives and the increased investments in the
mining, infrastructure, and agriculture sectors. Niger has a
small banking sector with a moderate degree of
concentration. The banking sector is not highly concentrated
and the customer base is relatively diversified. Four of the
10 banks account for 80 percent of total assets but in
relatively equal proportions, which could help competition.
The remaining banks are small with limited activity. The two
specialized financial institutions that are either
state-controlled or controlled by local governments are in
the process of privatization or liquidation.
