Niger Irrigation

completed

Niger is one of three African countries selected to participate in the World Bank managed Pilot Program for Climate Resilience (PPCR). Under the PPCR, US$50 million in grant finance and US$60 million in concessional loan finance is available to fund the interventions detailed in Niger's Strategic Program for Climate Resilience (SPCR). The IFC and the private sector arm of the African Development Bank are responsible for the private sector interventions within Niger's SPCR. Niger is a dry country that is predicted to get drier with climate change. Increased access to improved irrigation will make Niger's agricultural sector more resilient to climate change and enhance food security for the country. Hence it is critically important that the agricultural sector in Niger adopts improved irrigation techniques. Improved irrigation technologies will improve productivity and lead to the efficient use of the country's scarce water resources. It will also enable farmers in Niger to protect their crops and livelihoods despite longer dry seasons and unexpected weather events (such as heat waves). In 2012, the IFC conducted an in-depth market study with PPCR grant finance to investigate opportunities for private sector investment in improved irrigation systems. The proposed Niger Irrigation Project will test and implement the recommendations from the IFC study in a two-phased approach. Phase I comprises an Advisory Services (AS) program to test the financial viability of commercializing improved irrigation systems by the private sector to farmers in Niger. The program will facilitate access and adoption of these systems by farmers in Niger and aims to increase agricultural productivity of farmers and strengthen farmers resilience to climate change. Pending the success of Phase I, a second phase will comprise investments and associated AS programs to scale up private sector investments in improved irrigation systems in Niger. The results of Phase I will inform the investment structures that will be used in Phase II. The rationale for the two-phased approach is that market conditions do not currently exist to provide irrigation equipment on a fully commercial basis. The specific components of the program are: 1. Competitive selection of a lead agricultural input firm to provide irrigation equipment to small and medium sized farmers in Niger, and provision of support to the firm in the expansion of its irrigation business in the country to reach farmers. 2. Providing of training to farmers on financial management as well as on the installation and use of improved irrigation systems and associated inputs (e.g. greenhouses, hybrid seeds, fertilizers and pesticides). 3. Facilitate increased access to markets for farmers participating in the program.