Cement
There is only one cement plant (recently privatized), Societe Nigerienne de Cimentrie (SNC) in Niger. Some information about the plant is as follows:
Societe Nigerienne de Cimentrie SNC (Nigerien Society of Cement).
Established in 1963 with a capital of 900 million FCFA
Shares: (Now 100 % private) Previously state had 84% shares
Capacity: 40,000 tons/year.
Location: Malbaza in Department of Tahoua, the area is very rich in raw material used for cement production.
Employees: 164
Turn over: 1994 ( 1,557 million FCFA), 1995 (2,073 million FCFA)
SNC is presently working below capacity due to various problems and is producing only 30,000 tons/year. Niger’s annual demand of cement is about 150,000 tons/year. Presently cement is being imported from Nigeria, Benin and Togo. However cement produced by SNC is of superior quality (because of better raw material available in Niger) as compared to the imported cement. Factory price of SNC’s cement is 85,000 FCFA/ton whereas it is being retailed at 105,000 FCFA/ton. Price of imported cement also ranges between 105 and 110,000 FCFA/ton.
( FRENCH FRANC FF 1 = 100 FCFA)
Prospects
The supply-demand situation indicates bright prospects for investment in cement industry. Excellent quality raw material (Lime stone and Gypsum) is found over a large area extending from Tahoua towards Malbaza (site of SNC) in the south near the border with Nigeria. Besides meeting local demand, there is good opportunity of export to neighbouring countries.
Actual Situation / Raw Material / Infrastructure
Two ministries are directly related to a cement project in Niger. Ministry of Commerce and Industry is the main body concerning industry and investment. Concession/Lease for exploitation of raw material (Lime stone, Gypsum) is the domain of Ministry of Mines and Energy. Supply of electricity from the main transmission line is not available in the area where most of the raw material is found. Moreover this line is already saturated. There is, however, a possibility of supply in future. Local electric generation will therefore be required for any industrial project in the region. The cement plant SNC in Malbaza, though very close to the transmission line has its own electricity generation.
Modern Tannery
There is no modern tannery in Niger. The only tannery situated in Maradi was closed down in 1991. Livestock being an important sector of its economy, Niger is quite affluent in hides and skins, most of which are exported due to absence of tanneries in Niger. Nigeria with a large number of tanneries is a major destination for Niger’s raw skins at present. Niamey and Maradi are two ideal locations for installing a leather tannery.
Mining
Niger is rich in mineral resources. Deposits of Uranium, tin, coal, iron phosphates, salt, limestone and gypsum have been discovered. Important traces of gold, copper, zinc, manganese, nickel, cobalt and silver have been identified in the region of Liptako. About 14 foreign companies are presently engaged in gold exploration projects in this region. Oil exploration is also underway in three different locations in Niger. A brief on mining investment opportunities and mining licencing procedure can be obtained from concerned ministries upon request.
Foreign Investment
Under the Nigerien government’s policy of privatization and economic liberalization, the state has now a limited role in industrial development. This is also a requirement of the reforms process the government is carrying out with the assistance of the World Bank and IMF. The emphasis is now primarily on industrial development through promotion of private sector and foreign investment.
For a cement/sugar project in Niger, a prospective foreign investor would have to bring in a major part of total investment through his own resources, or arrange finances from other resources / international financial institutions. Partnership with Nigerien nationals can also be explored. Nigerien investment policy allows 100% foreign equity without any discrimination or loss of advantages/incentives of the investment regime.
Interest Shown by Pakistani Businessmen in the Past
Name : NEUTECH group (Rawalpindi, Pakistan) 1995
Field : Cement and sugar, tanneryName : Mian Habibullah (ex Chairman of EPB), Rawalpindi
Mr. Fazlur Rehman Fazli, Latif Shakir Textile Mills, Karachi
Field : Cement, sugar, tannery, power generationName : Bhoja Air Pvt Ltd.
Field : Civil Aviation
Code of Investment
Salient features of the Code of investment of Nigerien government are as follows :
a. Provision of general guarantees and preferential regimes for investment.
b. Non discrimination between national and foreign investors.
c. The right to acquire and exercise all kinds of rights concerning proprietorship, concession and administrative authorizations under the laws in force.
d. Protection against expropriation and nationalization except in case of public benefit under law
e. Tax free import of equipment, machinery
f. All construction activities and material to be exonerated from VAT.
g. Patent exoneration for five years.
h. Exoneration of taxes on profits for a period of five years.
i. Land development, tax on buildings to be exonerated for a period of five years.
j. Any kind of material, chemicals, fertilizers, etc. to be imported tax free for the first five years.
k. Repatriation of capital/profits to the country of origin.
Three different regimes are in force for investment
i). Regime A or Promotional regime, is applicable to all enterprises with investment capital between 25 and 50 million FCFA. Duration is five (5) years and the regime offers all fiscal advantages in realization and exploitation phases of the project.
ii). Regime B or Priority regime, is applicable to investments in range of 50 million to 2 billion FCFA ( excluding running capital). Duration is five years.
iii). Regime C or Conventional regime, is accorded to big enterprises having invested capital above 2 billion FCFA (excluding taxes and running capital). Duration is five years.
