NIGER: Supporting the Restructuring of Niger Telecoms

Niger Telecoms, the historic public telecommunications company, previously held a monopoly prior to the sector's liberalization in 2004. The company, as it exists today, resulted from a 2016 merger of SahelCom (mobile services) and SoniTel (fixed services). Despite owning and operating the backbone fiber-optic network—a critical asset and its primary revenue source—Niger Telecoms has struggled to maintain competitiveness. With a mobile market share of only 4 percent and limited investment in network upgrades, the company has been unable to support the digitalization of the economy or expand service coverage. This stagnation, combined with financial difficulties, has placed a significant burden on the state budget and hindered the sector's development.

In response to these challenges and to advance its economic reform agenda, the Government of Niger initiated efforts to address inefficiencies in the telecom sector and support the digital transformation of the economy. To this end, the government sought assistance from the World Bank Group to conduct a comprehensive diagnostic, identify viable reform approaches, and implement necessary changes.

PPIAF supported the initiative by conducting a detailed diagnostic of Niger Telecoms, including financial, technical, economic, and legal assessments. This analysis identified the company’s strengths and potential value-generating activities that could attract private sector interest. The findings were presented to the prime minister and key line ministries in February 2023.

Subsequently, the International Finance Corporation, the World Bank’s private sector arm, developed various structuring options for the privatization of Niger Telecoms. These options were tested with potential investors through a market sounding exercise to gauge interest and assess the viability of proposed reforms.

With this groundwork in place, Niger is poised to advance reforms that will modernize its telecommunications sector, promote private sector investment, and support the country’s broader digital transformation objectives.