The World Bank announced on Friday, May 17th, that it will resume disbursements to Niger, reigniting crucial projects that were halted. The organization had suspended its disbursements on August 2, following a coup d’état. According to a source contacted by AFP, this resumption is due to Niger clearing its debts.
Debt clearance was a prerequisite for resuming disbursements. With this condition now met, “disbursements for all active World Bank projects are expected to resume in the coming days,” stated the institution’s press office in Niamey, as reported by AFP.
The suspension of disbursements in August was a direct response to the coup. At the time, the World Bank expressed alarm over the efforts to overthrow the democratically elected government.
The resumed disbursements will reactivate significant projects, such as the Kandadji hydroelectric dam west of Niamey, which had been stalled for months due to lack of funding. The World Bank noted that the “interruption of funding particularly affected large infrastructure projects.” However, it acknowledged that “for the majority of projects, the authorities have continued implementation in one way or another.”
This resumption of funding is welcome news for Niamey. In 2022, the institution spent up to $1.5 billion in Niger through various aid programs.
Economist Ibrahim Adamou Louché commented that this is indeed “good news” as “the suspension of international aid represented a significant loss for public finances,” which had become severely strained. He added that “it seems likely” that future disbursements will be contingent on “attention to a return to constitutional order.”