NIF PIF–Trying to do business in Niger

One begins to understand why businesses do not invest in many developing countries.  Corruption is a killer, but even if corruption weren’t involved, government policies really restrict any kind of economic development especially if it involves materials shipped in.  We had sent our solar materials before I left in September.  After a two week delay with one of the companies all the packages finally arrived in Niamey.  We thought we were home free since we were accorded (after months of applications and strife) our exoneration status which allows us to pay customs at a rate of 3%.  So this is what I had in our budget.  When we sent a clearing agent recommended by the US Embassy to pick up the packages they told us we needed a NIF.  or fiscal identification number.  In the past NGOs were not required this–it is purely a commercial requirement, but now there is a new law…so new that the Agadez customs office was not even aware of it when we went to get our NIF.  They told us to get it in Niamey–the capital and seat of all government transactions.  So we tried in Niamey and they told us to go to Agadez.  Meanwhile the solar program is waiting for materials to make panels –thank goodness for Dr. Komps’ flexibility as he has focused on the solar ovens which will allow us to fabricate panels totally with materials that can be carried in a suitcase. (In the long run, when they are totally on their own shipping will be an issue, but at least we will have been through it by then–I tend to think it changes every time, though.)   So I asked the clearing agent to ask what the customs charge would be without the exoneration.   On a shipment valued at $4000, the duty would be $2200.  When I asked why more than 50% he said they charge duty on the shipping charges too.  So I said if it goes through with our exoneration what would the cost be.  He said $600.  Ok do the math.  If the value including shipping is close to $5000 I would have thought 3% would be $150.  I guess they use different calculators here.

So basically with import duties of over 50% everyone retreats to the less expensive route of bribing someone.  This is why customs agents who make less than $200 per month have million dollar villas.

Now we have worked out a compromise.  By paying a deposit of $500 they will clear our packages today, and when our proper papers come through we will be reimbursed–less normal fees.  I will not hold my breath on this one, but at least the US Embassy is following it so maybe…

I think I need to add a new category to our blog list entitled–FRUSTRATIONS.  I think it might be the most active.

stay tuned…