The economic crisis in Niger: the consequences of international sanctions
Niger, facing a serious political crisis following the recent coup d’etat, must also deal with an unprecedented economic crisis. The economic sanctions imposed by the ECOWAS countries and other international bodies jeopardize the repayment of the country’s debt. Thus, there are now fears of an imminent default.
The situation is particularly worrying when Niamey must make a payment of twelve billion CFA francs as part of the repayment of its debt. However, with the sanctions in place, it is increasingly uncertain whether the country can meet this deadline.
The rating agency Moody’s has already downgraded Niger’s rating, stressing that the country’s finances would not allow it to meet its repayment obligations. This analysis is corroborated by several West African economists, who are concerned about Niger’s ability to repay its debt.
Niger’s dependence on international aid to balance its budget and repay its debt is an aggravating factor in this crisis. Following the coup, several donors, such as the World Bank and the European Union, canceled their payments. In addition, the Central Bank of West African States has also stopped several payments due to ECOWAS sanctions. In total, nearly fifty billion CFA francs were withdrawn from the Nigerien economy over a three-year period.
This situation puts Niger in serious financial difficulties and risks preventing it from repaying its debt on time. The payments scheduled for September cast an even darker shadow over the country’s economy, which will have to repay nearly 70 billion CFA francs to its creditors within a few weeks.
It is essential that solutions be found to help Niger emerge from this economic crisis