The World Bank said on Wednesday that it has halted disbursements in the African nation of Niger until further notice, with the exception of private-sector partnerships, because it was "alarmed" by attempts to remove the democratically elected government there.
With a $4.5 billion portfolio encompassing the nation's core sectors, Niger has one of the largest World Bank holdings in Africa. Between 2022 and 2023, the government also got $600 million in direct budget support from the bank.
"The World Bank believes that peace, stability, and rule of law are fundamental for creating a world free of poverty on a livable planet. We are alarmed by efforts to overthrow the democratically elected government in Niger," the bank relayed via a statement.
"As a result, the World Bank has paused disbursements for all operations until further notice other than private sector partnerships which will continue with caution." The global lender said, noting that it would continue monitoring the situation. "We are driven by the ambition to improve the quality of life and opportunities for the people of Niger," it added.
Regional and international allies of Niger are hurrying to react to a military coup that political scholars warn might have serious repercussions for democratic advancement and the struggle against a jihadist terrorist insurgency in West Africa.
The democratically elected government of Niger was overthrown by a military junta on July 26. This was the fourth military coup in West and Central Africa in less than three years.
In an effort to find a diplomatic resolution before they must decide whether to interfere, the West African regional group ECOWAS dispatched a mission to Niger on Wednesday to speak with the military officials who took control of the country.
In the past three years, the private sector arm of the Bank, IFC, has attracted close to $50 million in investments in Niger, and projects worth $75 million are being considered for this year.
The Multilateral Investment Guarantee Agency, the World Bank's political risk division, has funded a $2.25 million financial technology project in Niger and is working to establish a pipeline of projects in the telecom and renewable energy industries.