The Nigerien government and the African Fund for Development, a concessional window of the African Development Bank (AfDB), signed an agreement on October 28, 2026, in Niamey, to finance the second phase of the Program to Support Governance in the Energy Sector and Competitiveness (PAGSEC-II). The agreement was signed by Niger's Minister of Economy and Finance, Mamane Laouali Abdou Rafa, and the AfDB's Country Representative, Mamadou Tangara.
The agreement provides 105 million units of account, equivalent to 82.127 billion CFA francs, to support Niger's efforts to consolidate its economy, improve public governance, and create conditions for more inclusive and sustainable growth. This funding represents a significant boost to Niger's development efforts and demonstrates the strong partnership between the Nigerien government and the AfDB.
The second phase of PAGSEC aims to build on the successes of the first phase while driving essential reforms for Niger's economic transformation. The program focuses on improving access to energy, strengthening the financial viability of the energy sector, enhancing private sector competitiveness, and promoting youth entrepreneurship. It also prioritizes consolidating economic governance, increasing transparency in public finance management, and better addressing vulnerable populations and gender dimensions.
Minister Mamane Laouali Abdou Rafa emphasized that PAGSEC-II has specific, measurable objectives that will drive concrete transformations. These objectives include increasing the electricity access rate from 22.53% in 2023 to 30% by the end of 2026, growing the manufacturing industry's value-added from 7.28% of GDP in 2023 to 8.58% by the end of 2026, and strengthening tax revenue mobilization to 9.7% of GDP in 2026, up from 8.1% in 2023.
The Minister reaffirmed Niger's commitment to strengthening its strategic partnership with the AfDB, aligned with national priorities and common development goals. Mamadou Tangara, AfDB Country Representative, noted that the design of PAGSEC-II resulted from intense dialogue between the bank and Nigerien authorities to identify key measures and reforms that will consolidate the results of the initial phase.
Tangara highlighted the importance of sustaining reforms in the energy sector to achieve Niger's 2030 targets. He commended the Nigerien government's efforts since 2024, which have significantly contributed to securing this second phase of budget support from the AfDB. The agreement demonstrates the bank's continued support for Niger's development aspirations.
The signing of the agreement took place on the sidelines of other significant events in Niamey, including the validation of the National Pharmaceutical Industry's strategic plan and the presentation of the three-year achievements of the Support Project for the Pharmaceutical Sector. These developments underscore Niger's ongoing efforts to drive economic growth, improve governance, and enhance the well-being of its citizens.
Key points
- The African Development Bank has agreed to provide $105 million to support Niger's energy sector under the second phase of the Program to Support Governance in the Energy Sector and Competitiveness (PAGSEC-II).
- The program aims to improve access to energy, strengthen the financial viability of the energy sector, and promote youth entrepreneurship, among other objectives.
- The agreement demonstrates the strong partnership between the Nigerien government and the African Development Bank in supporting Niger's development aspirations.
