NIGER COMMENTS ON PROPOSED OPIC SUPPORT TO ECP AFRICA FUND

UNCLAS NIAMEY 000029 SIPDIS E.O. 12958: N/A TAGS: EINV EFIN ETRD OPIC USTR NG SUBJECT: NIGER COMMENTS ON PROPOSED OPIC SUPPORT TO ECP AFRICA FUND III PCC REF: STATE 05207 ¶1. Post views proposed OPIC support to the Emerging Capital Partners (ECP) Africa Fund III PCC as supportive of economic development in the ECOWAS region. ¶2. With the exception of the mining sector, companies based in Niger are unlikely to benefit directly from this type of private equity funding due to their small size and lack of transparency. However, previous ECP Africa Fund investments include several regional companies with operations in Niger. These companies, Cote d'Ivoire Air, BIA, Celtel, and Ecobank, facilitate commercial activity in the region and sustain economic growth in Niger. ¶3. There is a critical need for private sector capital in regional markets due to the absence of other types of funding. Additionally, the potential for private capital funding and the careful review of corporate management that accompanies such funding serve as a valuable incentive to raise standards of management in the private sector. ¶4. Post has no information about the local reputation of Emerging Capital Partners. ALLEN