Agriculture is a critical sector in Niger, with the vast majority of the population reliant on the agricultural sector for income. In spite of this, the adequate and timely supply of agricultural inputs, such as fertlisers and feed, as well as agricultural equipment and machinery, is a significant bottleneck, reducing productivity and hampering growth.

The German Federal Ministry of Economic Cooperation and Development (BMZ) reached an agreement with the government of Niger to establish a fund strengthening the agricultural sector, with a specific focus on the supply of inputs. The envisioned revolving fund, to be implemented by KfW, will support a local public institution in Niger responsible for issuing large international tenders for agricultural inputs and supplying the country with such inputs. KfW contracted IPC to analyse the feasibility of this project concept and supply information relevant for dialogue between KfW and counterparts in the government of Niger.

In order to support KfW, IPC experts:

• met with multiple stakeholders in Niger (government ministries, co-ops, trade organisations, financial institutions, private sector
• players) in order to gain a comprehensive perspective on the agricultural sector and policy — particularly with regards to the supply of agricultural inputs and machinery

• analysed the current institutional, organisational and legal framework related to the planning, implementation, and management of agricultural input and machinery purchases
• assessed potential synergies between technical and financial stakeholders in relation to the envisioned fund and discussed the project concept and co-operation opportunities during a workshop with KfW and other development organizations involved in the agricultural sector support
• formulated alternative development scenarios and recommended a preferred approach for BMZ, along with an estimation of a potential budget and economic impact
• analysed project risks and potential environmental and social impact