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During the 1990s,
state control of a broad range activities (e.g., cement production,
textiles, hotels, transportation, petroleum distribution, agro-industries,
and utilities) had undermined private sector development and imposed
significant economic and social costs on the country. With few exceptions,
state-owned enterprises in Niger are characterized by low competitiveness
because of overstaffing, lack of adequate access to investment capital and
management weakness. As a result of these conditions, most of Niger’s
public enterprises (PE) exhibit some of the lowest profitability and
efficiency indicators in the region. Moreover, some enterprises have been
repeatedly used as a source of funds for extra-budgetary expenditure. The
PE sector also suffers from significant and chronic payment arrears from
the Government and cross-arrears among the enterprises.
In its Policy Framework Paper of July 1997, to address the
poor operational performance of the public enterprises, the Government of
Niger expressed its commitment to divest the state from the productive
sectors. Its strategy for public enterprise reform called for privatization
and the introduction of private participation in key infrastructures
sectors that were previously closed to private investors (i.e., telecommunications, water and
electricity) within an adequate regulatory framework.
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A law
enacted in 1996 established the legal framework for Privatization Program
and the Privatization Agency (Cellule de Coordination du Programme de
Privatization-CCCP). The Inter-Ministeriel Committee for privatization acts
as the decision making body taking the strategic decisions and approving
the transactions design in each case. In 1998, the Government completed a
Declaration on the Privatization Program in which the objectives,
timetable, sequencing, methods and principles concerning the privatization
program are explained to the general public.
The World Bank is currently supporting privatization in
Niger through a Privatization
and Regulatory Reform Technical Assistance Project for an amount of US$
18.6 million. The project will close in December 2001.
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A major transaction occur during the first quarter of 2001,
with the divestiture in March 2001 of the Société Nationale des Eaux (SNE),
the national water company. An affermage contract for a period of 10 years was signed with a French company,
Vivendi, which acquired 51 percent of shareholding. The government’s stake
is now reduced to 5 percent while the remaining shares are distributed
among private local investors (34 percent) and the workers (10 percent). A
list of companies divested can be accessed in the Africa Privatization
Database.
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In
July 2001, in its letter of intent presented to the IMF, GoN emphasizes its
commitment to continue structural reforms and accelerate its privatization
program in collaboration with the World Bank. In that sense, a
multi-sectoral regulatory agency is planned to be set up.
List
of major companies to be divested:
1- Société Nigerienne des Télécommunications- SONITEL
(Telecommunications). The necessary steps to bring the company to the point of sale have
been taken. Three consortiums are in negotiation for the privatization:
France Câble Radio-Sonatel, Tunisie Télécom-Intercel Holding and
Créatel-Détécom. 51 percent shareholding will be retained by the consortium
while 35 percent will remain to the State, 11 percent to local private
investors and 3 percent to workers.
Also,
for the mobile telephony, a system of interconnections and a regulatory
framework will be established by end-September 2001 to support
liberalization of the sector in which we can however note that two mobile
GSM telephony licenses were sold in December 2000.
2- Société Nigérienne
d’Electricité-NIGELEC (Electricity). In the recent letter of
intent, GoN noted that the “National Assembly is expected to adopt the
legislative and regulatory framework for the electricity sector before
launching a call for bids by end-December 2001 to operate NIGELEC under a
concession arrangement”.
3- Société Nigérienne de
Distribution des Produits Pétroliers- SONIDEP (Energy, Oil products). The
company, which holds a monopoly on petroleum product imports, is getting
closed to a point of sale with the introduction of a new petroleum product
pricing system and the clearance of the petroleum sector's past deficits.
GoN ensured that efforts to privatize the company through equity
participation will continue in 2001 with the establishment of a regulatory
framework to govern the activities of this enterprise.
Other
companies to be divested include a rice company (le Riz du Niger- RINI); a
financial institution (Crédit du Niger);
an international railway transport company (OCBN), an abattoir and
meat processing company (Abattoir Frigorifique de Niamey-AFN) and an hotel
(Hotel Gaweye).
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Project
Appraisal Document (PAD) on a Proposed loan in the amount of US$ 18.6
Million to the Republic of Niger for a Privatization
and Regulatory Reform Technical Assistance Project, August 1998
Niger
Letter of Intent, Memorandum of Economic and Financial Policies, and
Technical Memorandum of Understanding, July 19, 2001
Republic
of Niger -- Interim Poverty Reduction Strategy Paper, October 2000
IMF website: NIGER and the IMF, http://www.imf.org/external/country/ner/index.htm
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