WEEKLY CAMEL MARKET DRIVES LIBYA-LAKE CHAD TRADE

UNCLAS NIAMEY 000135 DEPT FOR AF/W AND USAID ACCRA FOR FAS AND USAID PARIS FOR AF WATCHER SIPDIS E.O. 12958: N/A TAGS: ECON ETRD KCRM KMPI PINR PTER SENV SMIG NG SUBJECT: WEEKLY CAMEL MARKET DRIVES LIBYA-LAKE CHAD TRADE ¶1. In far eastern Niger, N'Guigmi's weekly camel market on Sundays and Mondays draws buyers from Libya, Chad, and Nigeria, and 500 - 1,000 head change hands each week. The sale and export of camels has emerged as the most important source of income for the community. At the same time, it has dramatically revived the Lake Chad region's trade with Libya, which had all but completely stopped during the postwar and early independence period. ¶2. Forty years ago, the shoreline of Lake Chad reached the outskirts of N'Guigmi, Niger, and fishing was an important element of the local economy. As the lake receded, livestock herders moved in to graze cattle and camels on the brushy vegetation that covers the former lake bed. Declining precipitation throughout the region reduced the quality and amount of available pasture, and many of the groups that historically had kept mixed herds of cattle and camels shifted largely to the more drought- resistant camels. ¶3. The community of N'Guigmi has organized the camel market in order to protect buyers and insure a steady stream of income to the community. Sellers pay a 250 CFA (USD 0.50) registration fee for each animal they offer for sale, and the animals are tied and hobbled in a vast market area south of the town. Buyers move freely to inspect the hundreds of waiting animals, but all sales are finalized through a third-party guarantor who is licensed by the city. Guarantors are locals with extensive knowledge of the market and the registered camel brands of individual sellers. To guard against fraud and camel theft, each transaction requires a guarantor who knows the seller personally and can vouch that the camel belongs to the seller. The guarantor of each sale receives 5,000 CFA (USD 10) for his role in the transaction. The buyer also pays 1,000 CFA (USD 2) to register his purchase and insure that it is properly identified with the new owner's brand. Once sold, the animal is moved to a different area where purchasers gather their camels and hold them until they depart. ¶4. Despite this highly structured system, the market is a dusty swirl of buyers and sellers representing nomads from Niger, Arabs from Libya and Chad, and meat buyers from Nigeria, wandering amidst hundreds of camels of all ages and sizes. Apart from the separate area for animals that have been sold, the camels are not arranged in any order. Some are standing on three legs, with the fourth leg folded up and tied tightly to keep them from moving; others are kept in a lying position by restraint of multiple legs; calmer animals are left with only leg hobble while nursing calves are left unrestrained at the side of their mothers. N'Guigmi officials expressed frustration that in all this chaos, lack of a boundary wall around the market area makes it impossible to insure that all transactions are properly registered and appropriate fees collected. ¶5. Camels are the most valuable livestock in Niger. Prices for camels sold through the N'Guigmi market on March 22 and 23, 2009, varied according to the age and general condition of the animal, with immature and untrained camels bringing 250,000 - 275,000 CFA (approximately USD 550) and the largest and best male camels selling for over 4,000,000 (USD 7,500+). All sales are in cash. The largest number and best camels are purchased for export to Libya, while Nigerian buyers seek young camels to be slaughtered for meat. Animals in poor condition due to heavy use in regions with poor forage may be purchased by locals, who fatten them up on the relatively lush forage available in the former lake bed before bringing them back to resell in N'Guigmi. ¶6. Newly purchased camels are not usually transported by truck. Instead, long caravans of camels, many loaded with goods, leave N'Guigmi each week, headed across the desert towards Libya and Chad. The camel caravans facilitate exchange of goods, both licit and illicit, and make it easier for restive ethnic groups like the Toubou to obtain arms and money. Minimize considered. ALLEN