Overview

Country Overview

Mali is a vast landlocked and geographically diverse country of 1,241,238 km². It is a predominantly desert country with a highly undiversified economy. As such, it is vulnerable to commodity price fluctuations and to the consequences of climate change. Mali has a population of more than 17 million, 10 percent of whom live in the northern regions. High population growth rates and drought have fueled food insecurity, poverty, and instability. The delivery of services in this large, sparsely populated territory is challenging, and affects geographic equity and social cohesion.

Political Context

The political and security situation has been particularly volatile in recent years. In early 2012, there was a military coup and an occupation of the northern regions by armed groups. These events were followed by the deployment of French-led military forces in January 2013; the French handed over to the United Nations Multidimensional Integrated Stabilization Mission in Mali (MINUSMA) in July 2013. In 2014, the French reorganized their anti-terrorist interventions in the Sahel, establishing their operational headquarters in N’Djamena (Chad).

Two rounds of presidential elections were held peacefully in Mali in July and August 2013. Local government elections took place in November 2016.

Peace negotiations between government and two rebel coalitions, known as the “Platform” and “Coordination” groups, concluded in the signing of an agreement on 15 May 2015 by both the government and the Platform group, and the government and the Coordination group on 20 June, 2015.  While the new agreement does not envision an autonomous status for the northern regions, it gives a stronger impetus to decentralization, creating a critical role for these regions and a development zone consisting of the northern regions with the implementation of a program of accelerated development (Programme de développement accéléré du Nord- PDAN).

Its implementation, however, remains challenging. Security, which is critical for ensuring economic recovery and poverty reduction, remains fragile, with continuing attacks on the UN force and the Malian army by terrorist groups, mainly again in northern regions of Mali.

Social Context

While Mali experienced an overall drop in national poverty from 55.6 percent in 2001 to 43.6 percent in 2010, regional differences persist and, in 2013, the poverty rate rebounded to 45 percent.

Mali ranked 176th out of 188 countries on the 2015 United Nations Human Development Index. Poverty is much lower in urban areas, with 90 per-cent of all poor living in rural areas in the south, where population density is highest. Drought and conflict have only increased the incidence of poverty. Given the lack of reliable estimates, there is a dire need to improve welfare measurements and data collection to better understand the livelihoods of poor households.

Economic Overview

Over the past few years, Mali’s economic growth has been influenced by several exogenous shocks. The country’s steady state growth rate has hovered around 4.5 percent over the last decade, driven by rapid growth in labor supply, urbanization (along with informal sector and tertiary sector development), extensive agriculture, public investment, and gold mining activities. The structure of its Gross Domestic Product (GDP) has remained relatively stable since 1990, with the primary (agriculture, gold) and tertiary sectors (trade, transport, and public administration) each contributing 35-40 per-cent to GDP, with the secondary sector making up the balance. Mali’s industrial sector is limited (4 per-cent of GDP) and consists largely of privately owned small enterprises and a few large enterprises (cotton milling, electricity, and mining).

With the progressive consolidation of political stability and improved security conditions, growth accelerated to 7.0 per-cent in 2014, its highest level since 2003, and remained robust in 2015 and 2016 at 6.0 percent and 5.4 percent, respectively. Mali’s economy is projected to grow by around 5 percent over the period 2017-2019, reflecting a return to normalcy and a gradual tapering of the recent surge in international aid.

All economic sectors are expected to contribute to growth, especially the tertiary sector, which is projected to grow faster, thanks to the continued dynamism of telecommunications and transport. Mali’s favorable economic outlook is subject to substantial and persistent downside risks, among which the most critical are the collapse of the peace agreement and the resurgence of insecurity throughout the country, recurrence of lapses in governance, climatic shocks, and any further decline in global prices of gold or cotton, the major two export products of Mali.

Last Updated: May 02, 2017

World Bank Group Engagement in Mali

The World Bank Group is currently implementing a program designed to respond to Mali’s post crisis challenges. A new Country Partnership Framework (CPF) under implementation has been approved by the Board on December 10, 2015, with close cooperation with the government and the others stake holders to address the obstacles to reducing poverty as identified in the Systematic Country Diagnostic (SCD) completed in June 2015. 

International Finance Corporation (IFC)

As of December 2016, the International Finance Corporation (IFC) has aggregated commitments of $33.6 million comprising height projects (two in infrastructure, two supporting financial institutions, and four investments in manufacturing companies).

The main achievements of IFC MSME’s Access to Finance program were (i) the investment of a USD2.5M Risk Sharing Facility with Ecobank Mali and a USD4M investment (loan, equity) in a microfinance company (Microcred Mali), (ii) the creation of the Business Edge platform to train SMEs in management and business plans and hence increase their bankability and (iii) the development of the Africa Leasing Program to develop the legal and regulatory framework for the leasing sector so as to facilitate SME’s access to equipment.

IFC plays a key role in the infrastructure area with the development of two major Independent Power Producer (IPP) renewable energy projects, which will increase the country’s energy capacity by 75MW.

The development of agriculture is a top priority of IFC in Mali, given the high potential of the country and the role of agriculture to foster poverty reduction. IFC’s portfolio comprises 2 projects in agro-industries (milling and beverage subsector) and IFC is working to support other agro-industry projects in sectors where Mali has a competitive advantage.

The World Bank Group has contributed to Mali’s development performance in the following sectors:

Agriculture and Livestock

Thanks to World Bank Group projects such as the Agriculture Competitiveness and Diversification Project (ACDP), Mali has improved productivity of targeted horticultural/livestock products. Below are some project results:

  • The volume and value of the products marketed for the three main value chains (mango, shallot/onion and potato) have almost achieved the project’s expected results (respectively 107 percent, 115 percent, 117 percent; and 107 percent, 121 percent and 128 percent); The exported mango increased from 3,447 tons in 2006 to 37,572 in 2014 (668 percent).
  • Access to financing for farmers and other private economic operators in the selected supply chains increased to  836 million francs CFA out of 880 million planned (32 credits files);
  • Some 612 medium-sized agribusiness investors have benefitted from credit facilitation to acquire innovative technologies in micro-irrigation, storage, or post-harvest processing. These Small and medium-sized enterprises (SMEs) revealed profitable; many of them could be visited as today.
  • This project closed on June 30, 2015 with the Independent Evaluation Group (IEG) rating satisfactory.

Furthermore, the West Africa Agriculture Productivity Program seeks to scale-up the generation, dissemination and adoption of improved technologies in priority agricultural commodity areas. The project has reached 685,000 beneficiaries (34 percent are women) 447,800 ha are covered by new technologies against 240,000 planned by year; the distribution of certified seed reached 325,000 producers. The implementation of the E-voucher transaction is progressing satisfactorily and has already distributed inputs kits to nearly 40,000 vulnerable producers in northern Mali. Agreement has been reached to relay the inputs distributed by the Government through the same mechanism (step by step using the same data base). The Government Execution Manual has been updated. Nevertheless the weakness of the network needs to be solved in order to reach the performance of the system.

Transportation

Mali Second Transport Sector Project has 2.7 million beneficiaries and have increased the percentage of rural population with access to an all-season road in the project area from 26% to 33%. The project also improved urban mobility in downtown Bamako. World Bank efforts have resulted in the following:

  • 2,192 km of rural roads improved into all-weather roads in the regions of Kayes, Koulikoro, Sikasso, Segou and Mopti.
  • 295 km of key regional roads in Badiangara-Douentza (142 km) in Mopti aregion nd Badougou-Bafoulabe (150 km) in Kayes region were rehabilitated. Traffic grew from 10 vehicle per day to 323 vehicle per day for Badougou-Bafoulabe (150 km) and from 35 vehicle per day to 373 vehicle per day.
  • 4 river jetties constructed in the interior delta of Niger River in Diafarabe, Konna and Tenenkou (Mopti region) and Dioro (Segou region).
  • 292 local infrastructures constructed/rehabilitated involving drilling well for access to potable water, medical centers, solar energy, schools, multifunctional agricultural platform.

Education

Mali Emergency Education for all Project: The objective is to increase access and improve the learning environment for affected students in targeted areas. It is a Global Partnership for Education (GPE) Grant of US$41.7 million.

The project has already delivered 789 equipped classrooms out of the 1,050 planned under the project, which has allowed 40,050 new students to attend school in targeted areas. In addition, 133,516 students benefited from 21 million meals out of the 27 million meals planned for the duration of the project. It is expected that all 27 million meals be delivered by the end of this school year (2016-2017).  In addition, the project has supported the training and set-up of 1,300 parents’ committees to support school based management, including management of the delivery of remedial classes to more than 30,000 students affected by the crisis, as well as the management of school canteens, and students’ attendance. As many as 10,000 students’ desks and 30,000 kits were delivered to students in affected areas. Delays in contracts management and transfer of funds to schools have impacted the pace of activities implementation, in particular in northern regions, where the project has planned to undertake school rehabilitation and the second phase of school construction. It is expected that the project would complete all remaining activities planned under the project by the new closing date-end of December 2017.

Last Updated: May 02, 2017

The World Bank Group has contributed to Mali’s development performance in the following sectors:

Agriculture and Livestock

Thanks to World Bank Group projects such as the Agriculture Competitiveness and Diversification Project (ACDP), Mali has improved productivity of targeted horticultural/livestock products. Below are some project results:

  • The volume and value of the products marketed for the three main value chains (mango, shallot/onion and potato) have almost achieved the project’s expected results (respectively 104%, 93%, 95%; and 107, 90%, 96%)
  • Access to financing for farmers and other private economic operators in the selected supply chains increased to 782 million francs CFAF out of 880 million planned
  • Some 125 medium-sized agribusiness investors have benefitted from credit facilitation to acquire innovative technologies in micro-irrigation, storage, or post-harvest processing

Furthermore, the West Africa Agriculture Productivity Program seeks to scale-up the generation, dissemination and adoption of improved technologies in priority agricultural commodity areas. The implementation of the E-voucher transaction is progressing satisfactorily and has already distributed inputs kits to nearly 40,000 vulnerable producers in north Mali.

Transportation

World Bank efforts have resulted in the following:

  • 2,192 km of rural roads improved into all-weather roads.
  • 295 km of key regional roads in Mopti and in Kayes rehabilitated
  • 4 river jetties constructed in the interior delta of Niger River
  • Many local infrastructures constructed/rehabilitated involving drilling well for access to potable water, medical centers, solar energy, schools
  •  Construction of 1.3 km bus-only lane on the boulevard du people
  • Construction of a partially dedicated 4.8 km ring road for mini-buses (SOTRAMA ring road) in downtown Bamako to segregate and facilitate minibus traffic
  • Construction of pedestrian walkways and 2 pedestrian overpasses.

Mali Second Transport Sector Project has 2.7 million beneficiaries and have increased the percentage of rural population with access to an all-season road in the project area from 32% to 45%. The project also improved urban mobility in downtown Bamako.

Last Updated: May 02, 2017

Les  partenaires techniques et financiers (donateurs bilatéraux et multilatéraux et système de l’ONU au Mali) sont organisés en Groupe exécutif de coopération (GEC) piloté par trois bailleurs ; et en 10 groupes thématiques sectoriels, pour coordonner leur action.

Le GEC réunit les chefs de mission une fois par mois. En consultation avec le gouvernement, ils ont ainsi élaboré une Stratégie commune d’assistance pays (SCAP) permettant de définir les domaines prioritaires de coopération et de coordonner l’aide.

Un groupe technique appuie ce mécanisme dont la Banque mondiale est un acteur clé. En 2016, la Banque a animé le groupe thématique économie agricole et rurale et énergie. En 2017 elle prend en charge le groupe thématique économie, finances et secteur privé.

Par ailleurs, le Groupe de la Banque mondiale  travaille étroitement avec le secteur privé, la société civile, les municipalités, les universités.   

Last Updated: May 02, 2017


LENDING

Mali: Commitments by Fiscal Year (in millions of dollars)*

*Amounts include IBRD and IDA commitments

Welcome