Mali Economic Areas

Mali is highly dependent on foreign aid from many sources, most significantly from the World Bank, African Development Bank, and USAID. As of February 2011, Mali depended on foreign aid for almost 50 percent of its government expenditures. If foreign aid had increased as expected, this figure would have reached about 60 percent by 2015. However, many sources of foreign aid were cut following the recent coup in Mali and rebel activity in northern Mali. The United States is the leading provider of emergency humanitarian aid in Mali and the region, having allocated over USD 445.9 million in humanitarian assistance to the Sahel region in FY2012 and FY2013 to date. Of this, USD 119.3 million has been provided for drought- and conflict-affected Malians. About USD 70.4 million in bilateral foreign assistance, in addition to the emergency humanitarian aid cited above, has either continued under existing legal authorities, or has been approved to resume. The U.S. Peace Corps program and all U.S. security assistance programs have been suspended in the country. Mali’s USD 461 million Millennium Challenge Corporation (MCC) compact, which focused on improving agricultural development along the Niger River and constructing a new international airport in Bamako, was terminated months before its stated completion. The main sector for foreign direct investment (FDI) is in mining, with the largest investments coming from Australia, Canada, Great Britain, India, Japan, and South Africa. France, Germany, and China have made significant investments in the manufacturing and food processing sectors. In its 2011 World Investment Report, the United Nations Conference on Trade and Development (UNCTAD) reported that Mali received foreign direct investment (FDI) of USD 148 million in 2010, while total FDI stock for 2010 was USD 1.2 billion. FDI inflows to West Africa decreased in 2010 to USD 11.3 million from USD 12.6 million in 2009. Mali is a member of the Economic and Monetary Union of West African States (UEMOA) which aims to introduce a common market and free trade in goods, labor, capital and services. Mali is also a member of the larger grouping of ECOWAS—the Economic Community of West African States—which aims to promote economic integration between member states such as by eliminating trade barriers. There is no free-trade zone in Mali, however there are bonded warehouses for goods in transit and export-zone status is granted to companies if all products are to be exported, which also qualifies them for tax-free status. Mali is a member of the Organization for the Harmonization of Business Law in Africa (OHADA), which comprises 15 francophone African countries who have agreed to harmonize their business practices and laws, guaranteeing international arbitration in disputes.