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FDI in Figures

According to UNCTAD's World Investment Report 2023, FDI inflows to Niger stood at USD 581 million in 2022, relatively stable compared to the previous year and still above the 2018-20 average (USD 515 million). At the end of the same period, the FDI stock amounted to USD 8.23 billion, around 54.1% of GDP. The mining sector, in particular uranium, has traditionally taken the lion's share of foreign direct investment in Niger. However, uranium production will fall following the closure of the Akouta mine and the depletion of uranium mines (Coface). According to Coface, the construction, services (telecommunications), and mining sectors should become the main recipients of investments, with the intensification of projects such as the construction of the hydro-agricultural dam at Kandaji, the rehabilitation of Niamey airport, or even the construction of the Garadawa cement plant. The construction of a 2,000 km pipeline by the China National Petroleum Corporation is expected to enable Niger to become an oil exporter in 2024.

Niger's FDI has risen in the past decade, with the government actively pursuing measures to enhance its business environment and attract foreign investors. Reforms aimed at liberalizing the economy, promoting privatization, and establishing new export processing zones have been gradually implemented. In 2017, the High Council for Investment was formed to facilitate and advocate for FDI. Additionally, in 2018, the Government of Niger introduced the Guichet Unique du Commerce Exterieur, an electronic platform aimed at simplifying import-export procedures. In Niger, both foreign and domestic private entities have the freedom to establish and own businesses, with some restrictions imposed by the government. The Government of Niger (GON) imposes limitations on foreign ownership and control in critical sectors like energy and minerals for reasons of national security. In the extractives sector, companies awarded mining permits, whether foreign or domestic, must allocate a minimum 10% share to the government, with the possibility of the government acquiring up to a 33% stake in their operations. These regulations have remained unchanged since the last ICS report. Additionally, there are general regulations regarding foreign land ownership, requiring authorization from the Ministry of Planning. On the negative side, potential investors find Niger's small markets, inadequate infrastructure, bureaucratic hurdles, scarcity of local capital, and expensive transportation deterring. Moreover, they note challenges such as the limited availability of skilled labor, unclear regulations, and unreliable supply chains. Child labor is also a persistent issue. Overall, Niger ranks 125th among the 180 economies on the 2023 Corruption Perception Index and 128th out of 184 countries on the latest Index of Economic Freedom.

 

Country Comparison For the Protection of Investors

  Niger Sub-Saharan Africa United States Germany
Index of Transaction Transparency* 7.0 5.5 7.0 5.0
Index of Manager’s Responsibility** 1.0 3.5 9.0 5.0
Index of Shareholders’ Power*** 5.0 5.5 9.0 5.0

Source: Doing Business - Latest available data.

Note: *The Greater the Index, the More Transparent the Conditions of Transactions. **The Greater the Index, the More the Manager is Personally Responsible. *** The Greater the Index, the Easier it Will Be For Shareholders to Take Legal Action.

 
Foreign Direct Investment 202020212022
FDI Inward Flow (million USD) 361595581
FDI Stock (million USD) 8,182.68,122.08,237.7
Number of Greenfield Investments* 1.01.02.0
Value of Greenfield Investments (million USD) 516542

Source: UNCTAD - Latest available data

Note: * Greenfield Investments are a form of Foreign Direct Investment where a parent company starts a new venture in a foreign country by constructing new operational facilities from the ground up.

 

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Tax Rates

Value-added tax (VAT) - Taxe sur la valeur ajoutée (Local Name)
19% (standard rate).
Company Tax
30%
Withholding Taxes
Dividends: 7% (distributed by a company listed on an approved stock exchange)/10%, Interests: 20%, Royalties: 10%.
Social Security Contributions Paid By Employers
6.25% (calculated on a maximum monthly salary of XOF 500,000)
Other Domestic Resources
Directorate-General for Taxation, in French
Consult Doing Business Website, to obtain a summary of the taxes and mandatory contributions.
 
 

Individual Taxes

Personal income tax (calculated monthly) Progressive rates from 1% to 35%
From XOF 0 to 25,000 1%
From XOF 25,001 to 50,000 2%
From XOF 50,001 to 100,000 6%
From XOF 100,001 to 150,000 13%
From XOF 150,001 to 300,000 25%
From XOF 300,001 to 400,000 30%
From XOF 400,001 to 700,001 32%
From XOF 700,001 to 1 million 34%
Above XOF 1 million 35%
 
 

Country Comparison For Corporate Taxation

  Niger Sub-Saharan Africa United States Germany
Number of Payments of Taxes per Year 41.0 36.6 10.6 9.0
Time Taken For Administrative Formalities (Hours) 270.0 284.8 175.0 218.0
Total Share of Taxes (% of Profit) 47.2 47.3 36.6 48.8

Source: Doing Business - Latest available data.

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Investment Opportunities

Tenders, Projects and Public Procurement
Frontier Market Network, Tenders in Africa
African Tenders
DgMarket, Tenders Worldwide
Setting Up a Company
Consult Doing Business Website, to know about procedures to start a Business in Niger.
Useful Resources
Centre for Promotion of Investments (CPI)
Economic Developments and Prospects in Niger - African Economic Outlook
Business Portal for Africa
 

Business Setup Procedures

Setting Up a Company Niger Sub-Saharan Africa
Procedures (number) 4.00 7.51
Time (days) 10.00 21.30

Source: Doing Business.

 
 
 

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Latest Update: May 2024

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