Since 1999, the Nigerien authoritieshave embarked on a program of reform to develop thefinancial system and ensure its stability in the wake of aregional banking crisis. Despite this progress, much remainsto be done to bring the financial sector up to sub-regionalstandards. The first step is to formulate a financial sectordevelopment strategy that will serve as a roadmap for futurereforms. Issues of access to financial services are crucialin Niger, in view of indicators that place Niger at thelowest level in the Union (except for Guinea-Bissau). Thestability of the financial sector has improved, but stillrequires vigilance on the part of national and monetaryauthorities. The country's economic activity is basedon agriculture and services, but uranium is Niger'smain export. The primary and tertiary sectors account for 42and 38 percent of Gross Domestic Product (GDP) respectively.Agriculture sustains roughly 80 percent of the population.Industrial activities are extremely limited apart fromuranium mining in the north, which accounts for 60 percentof the country's exports on average. The medium-termmacroeconomic outlook in Niger appears favorable due to thegreater margin for budget maneuvering attributable to debtreduction initiatives and the increased investments in themining, infrastructure, and agriculture sectors. Niger has asmall banking sector with a moderate degree ofconcentration. The banking sector is not highly concentratedand the customer base is relatively diversified. Four of the10 banks account for 80 percent of total assets but inrelatively equal proportions, which could help competition.The remaining banks are small with limited activity. The twospecialized financial institutions that are eitherstate-controlled or controlled by local governments are inthe process of privatization or liquidation.
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