WASHINGTON, June 25, 2019 – The World Bank’s Board of Executive Directors approved on June 21, a $40 million credit from the International Development Association (IDA)* to strengthen the capacity and governance of the mining sector in Mali. This financing, together with other World Bank initiatives and donor-funded programs will support the Malian Government to leverage the mining sector to stimulate local economic and social development.
“The mining sector is a significant segment of Mali’s economy, contributing about 7% to the overall GDP, 30% to tax revenues, and 70% of export earnings – but it is not fulfilling its potential. Through the Governance of the Mining Sector Project, the World Bank will support the Government to address institutional and governance challenges, improve the investment and business climate, and encourage inclusive local development,” said Soukeyna Kane, World Bank Country Director for Mali.
Mining-led growth is a key part of the Strategic Framework for Economic Recovery and Sustainable Development (2019-2023). A robust and sustainable mining sector would contribute to government revenues, create economic links with other sectors, reduce economic volatility and create jobs, especially for young people and women.
“Mining has the potential to lift people out of poverty and boost human capital –particularly for the poorest and most vulnerable, working as artisanal and small-scale miners in the informal sector. This project intends to strengthen the mining sector in Mali by building institutional and technical capacity, promoting local economic development and formalizing small-scale mining,” said Christopher Sheldon, World Bank Practice Manager, Energy and Extractives Global Practice.
The Governance of the Mining Sector Project will create growth and diversification of the mineral sector, strengthen revenue transparency and governance and maximize the local development impact of mining.
The International Development Association (IDA), established in 1960, helps the world’s poorest countries by providing loans (known as “credits”) and grants for projects and programs that boost inclusive economic growth and reduce poverty. IDA is one of the largest sources of assistance for the world’s 81 poorest countries, 39 of which are in Africa. Resources from IDA bring positive change for 2.5 billion people living on less than $2 a day. Since 1960, IDA has supported development work in 108 countries. Annual commitments have increased steadily and averaged about $15 billion over the last three years, with about 50% of commitments going to Africa.