Niger’s coup and its ramifications: China’s investment and the call for stability in West Africa

The recent military coup in Niger on 26 July has heightened regional tensions, potentially leading to armed intervention by the 15 member states of the Economic Community of West African States (ECOWAS).

This unrest has severe implications for foreign economic interests, particularly China’s, as Niger has closed its airspace, intensifying the uncertainties surrounding the crisis.

China is Niger’s second-largest investor, following France, and the upheaval has gravely concerned Beijing.

In light of the escalating situation, the Chinese government has urged its citizens to evacuate Niger.

The turmoil has directly impacted major Chinese ventures, such as the suspension of the US$808 million Kandadji hydroelectric dam project by the Wuhan-based construction giant, Chiuna Gezhouaba Group Co.

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This suspension is a result of dried-up funding due to international sanctions on the Nigerien junta after the coup.

Notably, development aid from the US and the European Union, which made up about 40% of Niger’s state budget, has been halted post-coup.

Moreover, the fate of a significant oil pipeline project by PetroChina in Niger hangs in the balance.

Initiated in 2011 through a joint venture with Niger’s local government, this project, approved in 2019, is nearly 75% complete.

When finished, it will stand as Africa’s longest transboundary pipeline, linking Agadem to the port of Cotonou in Benin.

The project holds vast economic significance, with Nigerien government estimates from 2019 suggesting that it could contribute to a quarter of the nation’s GDP and half of its tax revenue.

Furthermore, Sinopec, another Chinese oil giant, had recently forged an agreement with Niger’s government this past May, aiming to bolster the development of the country’s oil and gas sectors.

China’s engagements in Niger aren’t limited to fossil fuels alone; they span across renewable energy, agriculture, infrastructure, and construction sectors.

Given China’s vast stakes and influence in the region, neighboring countries are looking to Beijing, hopeful that it might mediate to bring about stability in this tumultuous period.