Washington: The World Bank announced on Wednesday that it had stopped funding all operations in the precarious West African country until further notice, a week after the military overthrew democratically elected President Mohamed Bazoum.
Private sector collaborations "will continue with caution," the bank stated in a statement, adding that it will "closely monitor the situation."
With a $4.5 billion portfolio covering the nation's priority sectors, Niger has one of the largest World Bank holdings in Africa. Between 2022 and 2023, the country also received $600 million in direct budget support from the bank.
According to the World Bank, establishing a world free of poverty on a planet where people can live is impossible without peace, stability, and the rule of law. In a statement, it said: "We are concerned by attempts to overthrow the democratically elected government in Niger.
"As a result, the World Bank has suspended payments for all operations until further notice, with the exception of private sector partnerships, which will proceed with caution," the statement reads.
The World Bank declared that it would keep an eye on the situation. It continued, "We are motivated by the desire to enhance the opportunities and standard of living for the people of Niger.
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Regional and international allies of Niger are scrambling to react to a military coup that political analysts warn could have serious repercussions for democratic advancement and the struggle against a jihadist militant insurgency in West Africa.
In the past three years, the private sector arm of the Bank, IFC, has attracted close to $50 million in investments to Niger, and projects worth $75 million are being considered for this year.
The Multilateral Investment Guarantee Agency, the World Bank's political risk division, has supported a $2.25 million financial technology project in Niger and is working to develop a pipeline of projects in the telecom and renewable energy industries.
Foreign nationals continued to leave Niamey, the capital of Niger, late on Wednesday after spending hours waiting at the airport as defence officials of a regional bloc met to discuss how to react to the military coup, despite the uncertainty.
Following worries that they might get trapped after soldiers kidnapped Bazoum and took control, France, Italy, and Spain have all announced evacuations of their citizens and other Europeans in the capital, Niamey.
However, at least three of the group's 15 members have sided with the coup leaders, and two of them have threatened to view any intervention in Niger as an act of war against them. The West African regional bloc ECOWAS has threatened to use force to restore Bazoum to power.
In order to discuss next steps, the defence chiefs of the bloc began a two-day meeting on Wednesday in the capital of Nigeria. The ECOWAS commissioner for political affairs, peace, and stability, Abdel-Fatau Musah, stated that the Abuja meeting would address how to "negotiate with the officers in the hostage situation that we find ourselves in the Republic of Niger."
On Sunday, ECOWAS also announced sanctions against the coup leaders, including a halt to energy deals with Niger, which, according to the International Renewable Energy Agency, receives up to 90% of its power from Nigeria, its neighbour.
According to a representative of one of Nigeria's major electricity companies who spoke on the condition of anonymity because they were not authorised to comment on the situation, power transmission from Nigeria to Niger was stopped as of Tuesday. The official did not specify how much of Niger's power was lost, but any loss would worsen living conditions for its more than 25 million citizens.
The US government has yet to make any decisions regarding the evacuation of US forces, diplomats, aid workers, and other US citizens from Niger, a crucial US base for counterterrorism operations in the Sahel. However, a few Americans have departed with the aid of the Europeans.
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According to the French Foreign Ministry, France evacuated 736 people on three flights beginning on Tuesday, including 498 of its own citizens as well as citizens of Niger and at least ten other nations. According to a passenger on board who spoke to The Associated Press under the condition of anonymity due to the sensitivity of the situation, the fourth and final scheduled flight took off late Wednesday.
On Wednesday, a 99-passenger Italian military plane touched down in Rome with 21 Americans and other civilians among them, according to the Italian defence ministry. The flights were conducted, according to Italian Foreign Minister Antonio Tajani, with the new administration's approval.
