VZCZCXRO1799
RR RUEHLMC
DE RUEHNM #0336/01 1320733
ZNR UUUUU ZZH
R 120733Z MAY 09
FM AMEMBASSY NIAMEY
TO RUEHC/SECSTATE WASHDC 5016
INFO RUEATRS/DEPT OF TREASURY WASHINGTON DC
RUEHLMC/MCC WASHDC
RUEHFR/AMEMBASSY PARIS 0822

UNCLAS SECTION 01 OF 02 NIAMEY 000336 
 
DEPT FOR AF/EPS, AF/W and USAID/AFR 
 
PARIS FOR AFRICA WATCHER 
 
SIPDIS 
 
SENSITIVE BUT UNCLASSIFIED 
 
E.O. 12958: N/A 
TAGS: ECON EIND PGOV KMCA EAID NG
SUBJECT: NIAMEY: AMBASSADOR MEETS WITH FINANCE MINISTER 
 
¶1. (SBU) SUMMARY:  Ambassador Allen, accompanied by Embassy 
Econ/ConsOff (notetaker), met with Ali Mahamane Lamine Zeine, 
Minister of Economy and Finance on May 8, 2009, at Zeine's request. 
He called attention to Niger's high growth rate in 2008 and 
expressed the Government of Niger's (GON) interest in attracting 
private sector investment from the U.S.  In the context of the 
Ambassador's comments about U.S. plans to support coming Nigerien 
elections and public debate over constitutional provisions that 
limit the President to two terms, the Minister opined that the 
matter of mandates would have to be revisited at some point because 
the people of Niger had been forced to accept the current 
constitution "as is" when presented for consideration under the 
former military government. 
 
--------------------------------------------- ------ 
BILATERAL COOPERATION 
--------------------------------------------- ------ 
¶2. (SBU) The Minister lauded the good bilateral relations between 
Niger and the U.S., including support in development and security 
issues.  He said he follows press coverage of the Ambassador's 
travel throughout the country and her involvement with the people of 
Niger in activities ranging from schools to food security to sports 
events.  He mentioned the U.S. Government "very efficient but 
discrete" assistance in the 2000 elections in warning governments of 
certain neighboring countries against interference. 
 
¶3. (U) The Ambassador noted that the Embassy has been working to 
identify funding for assistance related to the elections due later 
this year.  With regard to the ongoing assistance provided by the 
U.S. Department of Treasury Office of Technical Assistance (OTA), 
the Ambassador noted that GON had not yet signed the Terms of 
Reference (TOR), putting the project at risk in potential budget 
cuts.  The Minister responded by signing the TOR on the spot and 
returned both the French and English copies during the meeting. 
 
--------------------------------------------- --- 
ECONOMIC CONDITIONS IN NIGER 
--------------------------------------------- ---- 
¶4. (U) The Minister welcomed the opportunity to provide an overview 
of the economic situation in Niger, and stated that Niger's 2008 
economic growth of 9.5 percent was the highest in Africa.  He 
attributed this to three major factors:  an exceptional harvest due 
to prolonged good rains; strong public and private investment, 
including foreign investment in telecoms, energy and mining; and the 
good state of public finances.   He described several cases in which 
he had acted to reduce corruption in government procurement, and 
attributed fiscal health to better control of public spending 
coupled with increased revenues.   Thanks in part to the success of 
the OTA project, tax receipts were 113 percent of anticipated 
amounts, and customs revenue was also above budget.  Still, there 
are large challenges ahead: to continue progress on investment, 
especially industrial investment; and to address societal demands 
for higher income. 
 
¶5. (U) The Minister noted public debate and questions about the 
exceptional income from the petroleum contract signed with the 
Chinese, confirming that over CFA 204 billion had been deposited in 
the treasury general fund as a result of the Chinese "signing 
bonus."  He attributed the difference between the original amount 
anticipated and the actual amount deposited to exchange rate 
fluctuations between the announcement of the bonus and the day it 
was actually received, but insisted all the funds were used to fund 
increases across the budget.  Similarly, he stated that revenue from 
the mining sector, totaling CFA 50 billion, has been deposited in 
the general fund and applied to regular spending.  The Minister 
noted three ongoing projects that are critical to maintaining 
economic growth: the auxiliary development plan financed by the EU; 
US financial support through the Millennium Challenge Account (MCA) 
mechanism, and the dam at Kandadji under construction with funding 
from Saudi Arabia and the United Arab Emirates.  He stated that the 
potential contribution of these three activities is more certain 
than that of uranium or oil. 
 
--------------------------------------------- --- 
QUEST FOR U.S. INVESTMENT 
--------------------------------------------- --- 
¶6.  (SBU) The Minister asked for assistance in attracting private 
sector investment from the U.S., noting that promising areas include 
agriculture, small engineering, livestock, tourism and handicrafts, 
and mining. He added that the government sees France and China as 
long term partners, but it is essential to balance them with 
investment from other sources. 
The Ambassador mentioned that the Embassy of Niger in Washington DC 
should work on more visibility for Niger in the U.S., do more to 
sell Niger to attract potential American investors.  She commented 
 
NIAMEY 00000336  002 OF 002 
 
 
on the importance of security for investors, including economic 
stability, an impartial legal system, and transparency.  She added 
it would be helpful for the government to maintain an active website 
to help inform potential investors of Niger's potential.  The 
Minister agreed on that point and responded that his Ministry is 
working on such a website.  On the issue of press freedom, the 
Minister responded that GON actions were directed only at those who 
made false and misleading allegations. 
 
¶7. (U) The Minister concluded the meeting by noting the government's 
struggle to identify new sources of income, such a US$ 10 million 
grant from the EU for capacity building, in order to provide the 
government with badly needed skills in all areas of administration. 
He expressed his confidence that the people of Niger will prevail 
over the economic challenges they face. 
 
ALLEN