The World Bank has approved a $250 million grant from the International Development Association (IDA) to help Niger strengthen its financial sector and expand access to finance for micro, small, and medium-sized enterprises (MSMEs). The project is designed to restore liquidity in the banking system, encourage lending to viable businesses, and support job creation and income generation across the country.
The new Support to the Financial Sector and Access to MSME Finance in Niger Project will help the government address liquidity constraints affecting both financial institutions and MSMEs. It will use a package of complementary financial tools to improve liquidity, strengthen financial intermediation, and widen access to financing for smaller businesses. The project is expected to benefit around 7,500 MSMEs, including women-led enterprises and climate-resilient investments, and is projected to help create and sustain approximately 58,000 jobs.
Niger’s private sector has been facing increasing pressure due to difficult macroeconomic conditions and recent financial disruptions. According to the World Bank, several banks and microfinance institutions are struggling with liquidity shortages, while public sector banks face structural weaknesses and credit access remains limited for MSMEs. These challenges have reduced the ability of lenders to meet demand and restricted financing for businesses that rely on working capital and investment funds to continue operating, preserve jobs, and grow.
The World Bank said the operation is intended to restore confidence in the financial system while creating new opportunities for Nigerien entrepreneurs. By combining liquidity support, risk-sharing instruments, and technical assistance, the project aims to help viable MSMEs secure financing to invest, protect employment, and expand their activities. At the same time, it will strengthen the capacity of financial institutions to lend more sustainably, including to women-led businesses.
In addition to boosting lending, the project will support financial institutions through targeted capacity-building and improve MSMEs’ access to both financial and non-financial services. It also includes a Contingent Emergency Response Component, which will allow for a rapid response if a future crisis occurs, along with implementation support, monitoring, and evaluation measures to ensure the project is carried out effectively.
Overall, the operation is part of Niger’s broader efforts to stabilize and modernize its financial sector while stimulating private sector activity. By improving access to finance and strengthening financial institutions, the project is expected to create better conditions for entrepreneurship, investment, and job creation in the country.
