HomeEconomic IndicatorNiger's 2023 Budget Slashed by 40% Amidst Sanctions Following Coup

Niger’s 2023 Budget Slashed by 40% Amidst Sanctions Following Coup

Niger Cuts 2023 Budget by 40% as Post-Coup Sanctions Bite

Niger has made the difficult decision to reduce its planned spending for 2023 by 40% due to international sanctions imposed following a military coup in July. This move is expected to further cripple the economy of one of the world’s poorest countries. The junta revealed this development in a televised statement on Saturday.

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Economic Setback

The initial budget for this year, which was estimated at 3.29 trillion CFA francs ($5.3 billion), has now been slashed to 1.98 trillion. Unfortunately, the statement did not provide specifics regarding the areas where the cuts will be implemented.

Political Turmoil

President Mohamed Bazoum was detained by soldiers from the presidential guard on July 26, leading to the establishment of a transitional government. This coup is one of several that have recently occurred in the Sahel region of West Africa.

International Response

The takeover prompted condemnation from various entities, including the regional bloc ECOWAS, the European Union, and the United States. As a result, sanctions were imposed, assets were frozen, and aid was halted.

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Impact on Daily Life

The trade blockade has caused food prices to soar and has resulted in a shortage of essential goods, including life-saving medicines. However, despite these hardships, the junta continues to enjoy support from the local population, who were weary of the difficulties and perceived corruption under the Bazoum regime.

Challenges Faced by Niger

Niger, situated in the arid southern fringe of the Sahara Desert, is the world’s seventh-largest producer of uranium, a radioactive metal widely used in nuclear energy and cancer treatment. However, the country grapples with poverty and persistent insecurity caused by violent Islamist groups. Additionally, Niger heavily relies on aid, with external partners projected to contribute approximately 40% of this year’s budget.

($1 = 618.2500 CFA francs)

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