2023-08-31 11:31:54
A major player in American economic diplomacy on the continent, the Millennium Challenge Corporation (MCC) has announced that it will suspend its funding for the benefit of Niger, due to “the dismissal of the democratically elected government”. The decision of the American public agency compromises the development of the Niamey-Cotonou road corridor.
In September 2022, the American organization had approved its first regional Compact (“donation agreement”) for Niger and Benin. In the amount of 504 million dollars, this donation aimed to “reduce transport costs in the corridor from the port of Cotonou, in Benin, to Niamey, the capital of Niger”.
“A lost financial windfall”
In the frame of this regional pact, Niger was to benefit from 302 million dollars, against 202 million dollars for Benin. The two countries had also committed to mobilizing $15 million each to strengthen regional trade and thus accelerate “inclusive economic growth in the region through the Niamey-Cotonou road corridor”.
Devoted to the fight against poverty in developing countries, the American agency does not recognize the legitimacy of the new authorities in Niger. “The Millennium Challenge Corporation continues to be seriously concerned about the actions of the Niger military against the democratically elected government of Niger,” the agency said in a statement. These actions contradict MCC’s commitment to democratic governance and respect for the rule of law, principles that underpin the agency’s rigorous selection criteria. »
Since 2006, MCC has signed grant programs with the Government of Niger totaling more than $750 million. These programs have sought to improve women’s literacy, expand irrigation, rehabilitate roads, and increase agricultural productivity. “A real financial windfall was to arrive in the country – because the West was betting big on Niamey”, analyzes a West African economist who prefers to remain anonymous.
The construction of the Kandadji dam suspended
The day after the coup force in Niger, bilateral donors, such as France and the United States, and multilateral donors, such as the World Bank and the European Union, have announced the suspension of their financial support to Niamey. “Niger is currently in a very bad position because strategic projects, public and private, will quickly come to a halt”, continues our interlocutor.
Weakened by the economic and financial blockade imposed by the Economic Community of West African States (ECOWAS), General Tiani’s junta saw the strategic Kandadji hydroelectric dam project suspended. The Chinese construction group Gezhouba said in mid-August that it was forced to stop all of its construction activities for “force majeure”.
Located in the “three borders” area, the Kandadji hydroelectric dam, whose construction costs amount to more than one billion euros, would have changed the situation in terms of food and energy security in the country. In addition, the military putsch also compromises the entry into service – scheduled for next October – of the pipeline between Niger and Benin. Operated by the China National Petroleum Company (CNPC), it is supposed to multiply by six Niamey’s black gold export capacity – which is currently 20,000 barrels per day – via the port of Seme, au Benign.
1693741837
#buried #NiameyCotonou #corridor #Young #Africa