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Viewing cable 06NIAMEY787, NIGER: GON MOVES TO IMPROVE INVESTMENT CLIMATE

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Reference ID Created Released Classification Origin
06NIAMEY787 2006-07-26 15:58 2011-08-25 00:00 UNCLASSIFIED Embassy Niamey
VZCZCXRO1954
RR RUEHMA RUEHPA
DE RUEHNM #0787/01 2071558
ZNR UUUUU ZZH
R 261558Z JUL 06
FM AMEMBASSY NIAMEY
TO RUEHC/SECSTATE WASHDC 2696
INFO RUEHZK/ECOWAS COLLECTIVE
RUEHLMC/MCC WASHDC
RUEATRS/DEPT OF TREASURY WASHINGTON DC
UNCLAS SECTION 01 OF 02 NIAMEY 000787 
 
SIPDIS 
 
SIPDIS 
 
STATE FOR MCC/IT 
 
E.O. 12958: N/A 
TAGS: ETRB ECON KMCA PREL NG
SUBJECT: NIGER: GON MOVES TO IMPROVE INVESTMENT CLIMATE 
 
NIAMEY 00000787  001.2 OF 002 
 
 
1. SUMMARY. On July 13, Government of Niger (GON) Prime 
Minister (PM) Hama Amadou held a meeting with the Council of 
Ministers and members of the National Counsel of Private 
Investors (CNIP) to review the latter's recommended reforms 
to the process of setting up a business in Niger. The PM 
ordered several of CNIP's proposed reforms to be instituted 
immediately, and instructed various GON ministries to follow 
up. This period of rapid action stems from a February visit 
by a World Bank (WB) team preparing the WB's "Doing Business" 
report. The team suggested that Niger could improve its rank 
by acting on ten standard indicators of performance, of which 
the GON selected three for immediate action - start up time 
for new businesses, ease of property transfer, and regulation 
of the construction sector. CNIP was put in place in March to 
study the specific ways in which these priorities might be 
addressed. The PM's rapid adoption of their recommendations 
on the 13th suggests that the GON is serious about 
eliminating the barriers to private sector growth in the 
world's least-developed economy. END SUMMARY. 
 
------------------------------------ 
REDUCED START-UP TIME FOR BUSINESSES 
------------------------------------ 
 
2.  CNIP argued that Niger should seek to reduce the start up 
time for new businesses, using West African Economic and 
Monetary Union (UEMOA) members, numbers as a benchmark. The 
PM instructed the Minister of Justice to reduce the start up 
time to that of the UEMOA group leader. The Clerk of the 
Business Court was empowered to register new businesses, 
names immediately and to postpone a time consuming system of 
redundancy checks until later. The presentation of police 
records by new entrepreneurs was likewise allowed to follow, 
rather than precede, the registry. A requirement that notice 
of new companies be printed in the GON's Official journal was 
liberalized - allowing companies to be listed just once 
instead of twice in the monthly journal prior to starting 
work. Acting on another CNIP recommendation, the PM abolished 
certain commercial fees that new companies must pay to begin 
work. 
 
3.  The PM gave the Ministry of Labor responsibility for 
making the registry of one's employees with the social 
security administration and government employment agency a 
one stop affair. The requirement that foreign individuals or 
entities obtain "working licenses" in order to operate in 
Niger was lifted for entrepreneurs. The CNIP also recommended 
lowering the GON collected fee on property transfers from ten 
percent of assessed value to the three or five percent to 
better reflect the UEMOA average. The PM instructed the 
Minister of Finance to look into this. 
 
--------------------------------- 
KNOCKING DOWN SOME BUILDING RULES 
--------------------------------- 
 
4.  The myriad rules governing private industrial 
construction will soon be more accessible, as the PM ordered 
the Ministry of the Interior to publish a unified booklet 
with all of the relevant documents and contact information 
for relevant GON offices. Licensing fees too will be 
minimized under a new system whereby a fixed amount of CFA 
50,000 (approximately $100) will be charged for a building 
license and an extra fee of CFA 25,000 (approximately $50) 
will be charged for stamps. Previously, there was no fixed 
rate. Fees varied according to the type of construction, 
ranging from CFA 500 ($1.00) to CFA 3,000 ($6.00) per square 
meter. Moreover, the requirement that new commercial building 
plans be reviewed by a board of inspections - historically a 
cumbersome process - was abolished in favor of the simple 
requirement that all such buildings be designed by an 
accredited architect. Finally, a new construction inspection 
regime was promulgated. Rather than the eleven unannounced 
spot inspections carried out on commercial construction sites 
at present, the GON will inspect each project twice, at the 
beginning and the end. 
 
5.  COMMENT: In the Nigerien context, development usually 
conjures up images of international donor money or public 
sector activity - in the minds of Nigeriens and expatriates 
alike. Against a background of such expectations, PM Amadou 
has initiated a subtle shift in emphasis. In various public 
remarks over the last six months he has begun to make the 
obvious but oft neglected point that "development" for the 
country must be premised on a stronger, more formalized, 
private sector too. If the PM's rapid-fire implementation of 
CNIP's initial recommendations presages equally vigorous 
action on the remaining seven WB performance indicators, Hama 
Amadou will have matched his avowed interest in MCC 
 
NIAMEY 00000787  002.2 OF 002 
 
 
eligibility for Niger with some actions that might yield it. 
END COMMENT 
ALLEN