| Niger | Benin | Burkina Faso | Mali | Senegal | |
|---|---|---|---|---|---|
| GDP (US$ bn) | 12.80 | 14.25 | 16.10 | 17.15 | 23.50 |
| Population (mn) | 22.40 | 11.50 | 19.75 | 19.10 | 15.90 |
| GDP per capita (US$) | ..... | ..... | 815 | 898 | 1 478 |
| GDP per capita PPP (US$) | 1 220 | 3 240 | 2 180 | 2 210 | 3 380 |
| HDI | 0.394 | 0.525 | 0.434 | 0.427 | 0.512 |
| IHDI | no data | 0.327 | 0.301 | 0.294 | 0.347 |
Niger has achieved reasonable macroeconomic stability and made gradual strides in primary school enrolment and maternal health. However, in spite of this progress, Niger's economic growth and development are severely constrained compared to its coastal neighbours in West Africa.
Niger is a vast, landlocked nation in the Sahel, and ranks among the most aid-dependent countries in the world. The country is highly susceptible to external shocks, such as severe droughts driven by climate change, fluctuating commodity prices, and volatile development aid flows.
These structural vulnerabilities are compounded by a very narrow tax base. A massive informal economy and generous tax exemptions granted to foreign mining operations limit government revenues to just 12% of GDP. This restricts the government's fiscal space to finance public investments in healthcare and education.
Uranium and gold represent more than 65% of Niger’s total merchandise export earnings. This extreme primary-product dependence exposes the domestic budget to global price volatility and deters diversification into higher value-added manufacturing.
| Destination | 2005 | 2010 | 2015 | 2018 |
|---|---|---|---|---|
| European Union | 3.2 | 4.1 | 5.0 | 6.2 |
| India | 0.5 | 1.1 | 1.8 | 2.5 |
| China | 0.2 | 0.8 | 1.5 | 2.1 |
| Rest of Africa | 1.1 | 1.5 | 2.2 | 2.8 |
| Within WAEMU | 0.9 | 1.4 | 2.1 | 2.9 |
The West African Economic and Monetary Union (WAEMU) was established to promote economic integration among member states sharing the CFA franc. Key goals include a common external tariff, market liberalisation, and the harmonisation of fiscal policies.
Between 2005 and 2018, the reduction of internal trade barriers supported regional commerce, offering small landlocked economies a potential pathway to industrialise. However, benefits have been highly asymmetrical. Senegal and Côte d'Ivoire dominate intra-regional exports, accounting for over 70% of intra-WAEMU trade.
By contrast, Niger’s export growth within the bloc has stagnated. This is largely attributed to severe infrastructure deficits—specifically a lack of paved cross-border highways, absence of rail links to regional ports (such as Cotonou or Lomé), and security challenges along trade corridors which dramatically increase transit times and transport costs.
With reference to Extract A and Extract B, examine two factors that constrain economic growth in Niger.
