Chinese Firm Halts Project in Niger Republic Amid ECOWAS, UN, World Bank Sanctions

Following Restrictions imposed on Niger by the Economic Community of West African States (ECOWAS), the European Union, and the World Bank, China Gezhouba Group Co. LTD has paused development of the Niger Republic Kandadji Dam project.

According to Gistlover, international organizations placed financial sanctions on the French-speaking country when the military overthrew democratically elected President Mohamed Bazoum.

The Republic of Niger’s political instability has drawn even more sanctions against the African country.

Zagazola Makama, a popular security analyst and counter-insurgency expert on Lake Chad in the West African region, cited a circular dated August 7, 2023, titled ‘Notice on the shutdown of the Kandadji Dam Project and the dismissal of workers,’ stating that Chinese Gezhouba Group has chosen to cancel the project due to its failure to resolve bills incurred during the dam’s construction.

The group also stated that they would cancel all existing contractual relationships with local staff in order to efficiently fire them.

The statement reads: “Due to the political turbulence that occurred on July 26, 2023 in Niger, the security situation is becoming increasingly worrying. The Economic Community of West African States (ECOWAS), the European Union and the World Bank have all imposed financial sanctions on the country, making it impossible for the Company to settle bills.

“Faced with this case of force majeure, we find ourselves forced to stop all construction activities for a week and to proceed with the gradual termination of the contracts of local workers. And it should be emphasized that the termination of the contract due to force majeure would not imply the compensation of the dismissed employees.

“However, we undertake to liquidate the wages due to, them and to guarantee their legitimate rights. We also promise to give priority to our laid-off workers when recruiting once construction of the Kandadji Dam resumes. And regarding the termination of the contract, we will need your assistance and support.”