WASHINGTON, March 12, 2026 - The World Bank today approved a $250 million grant from the International Development Association (IDA) to help Niger strengthen its financial sector and expand access to finance for micro, small, and medium-sized enterprises (MSMEs). The operation aims to help restore liquidity in the banking system, encourage renewed lending to viable businesses, and support job creation and income generation across the country.
The Support to the Financial Sector and Access to MSME Finance in Niger Project will support the Government of Niger in addressing liquidity challenges faced by financial institutions and MSMEs. It will deploy a package of complementary instruments designed to improve liquidity and strengthen financial intermediation, while widening access to finance for MSMEs. The project is expected to benefit 7,500 MSMEs, including through targeted support to women-led businesses and climate-resilient investments-and is expected to help create and maintain an estimated 58,000 jobs.
Niger's private sector and MSMEs have faced growing constraints due to prevailing macroeconomic conditions and recent financial disruptions. The financial sector is challenged by liquidity shortages in several banks and microfinance institutions, weaknesses in public sector banks, and limited credit availability for MSMEs. These constraints have reduced lenders' ability to meet customer needs and curtailed financing to the private sector, particularly to MSMEs that depend on working capital and investment finance to operate, sustain jobs, and grow.
"This project is about restoring confidence and unlocking opportunity for Nigerien entrepreneurs," said Johan A. Mistiaen, World Bank Group Country Manager for Niger. "By combining liquidity support, risk-sharing tools, and hands-on technical assistance, the operation will help viable MSMEs access financing to invest, protect jobs, and expand-while strengthening the capacity of financial institutions to lend sustainably, including to women-led businesses."
The project will also help expand MSME lending through a mix of liquidity support and risk-sharing mechanisms, alongside targeted support to strengthen the capacity of participating financial institutions and improve MSME access to financial and non-financial services. It also includes a Contingent Emergency Response Component (CERC) to provide flexibility for a rapid response in the event of a crisis, as well as implementation support, monitoring and evaluation to ensure effective execution.
This operation supports Niger's efforts to stabilize and modernize its financial sector, stimulate private sector activity, and create better conditions for entrepreneurship, investment, and jobs.
