After decades of French colonial rule and a brief federation with Senegal, the Republic of Mali was established in 1960.
Landlocked Mali’s economy is mostly confined to the area irrigated by the Niger River, but the government is encouraging diversification. Tax administration has been improved, and the cotton markets are moving toward privatization. Restrained public spending and stable monetary policy have stimulated a growing entrepreneurial sector.
Trade is moderately important to Mali’s economy; the combined value of exports and imports equals 47 percent of GDP. The average applied tariff rate is 10.6 percent. Nontariff barriers impede some trade. Government openness to foreign investment is above average.
Real GDP growth averaged 6.5% between 2014 and 2015 before slowing to 5.8% in 2016. The decline continued in 2017, to an estimated 5.5%, likely because of the primary sector’s underperformance (38% of GDP) due to a poor agricultural season. In the medium term, the economic outlook remains positive; real GDP growth is projected to be 5% in 2018 and 4.9% in 2019
Mali is a leading producer of gold (the world’s tenth largest and Africa’s third), although prospecting for other minerals is on-going. Artisanal mining, which accounts for about ten percent of production has picked up in the last two years. Recent discoveries have tripled the country’s bauxite reserves. Mali has rich deposits of gold, bauxite, manganese, iron ore, limestone, phosphates and uranium. Oil and gas exploration has slowed down since 2012, although Mali has proven reserves of oil shale. Mineral deposits are primarily located around Kayes, Ansongo, Bafoulamé, Hombori, Tilemsi and western Mali. Gold production dominates Mali’s natural resource sector, with Mali being the third largest gold exporter in Africa. Gold is by far Mali’s most important export, comprising nearly 70% of total exports in 2016. The price of gold fluctuates with the world market price. The sector has experienced some difficulties as unproductive mines have been closed, and others face imminent closure. However, three new mines are expected to open this year with a capacity of 20 tons a year. Two smaller mines opened in 2015. Gold panning contributes approximately 10% of gold exports. Over two million people, representing more than 10% of the population, depend on the mining sector for income. Total Local Production: 2014(49.8 Tons) 2015 (50 Tons) 2016 (50 Tons) Mali also has other mineral prospects as the majority of the territory remains largely unexplored and unmapped. The Ministry of Mines estimates 800 tons of gold deposits, 2 million tons of iron-ore, 5,000 tons of uranium, 20 million tons of manganese, 4 million tons of lithium, and 10 million tons of limestone. As the government seeks to reduce dependency on gold and diversify the mining sector, foreign firms have a unique opportunity to support this expansion. Mali has also formalized and reformed the process of registering and delivering research and exploitation permits to mining companies.
Different climate zones There are three climate zones across Mali: i) the arid desert zone in the north, where daytime temperatures reach 50°C but can drop down to 5°C at night, ii) the Sahel zone in the middle, which receives less than 500mm of rain each year and has daytime temperatures between 23°C and 36°C, and iii) the Sudanic zone in the southern third of the country, where there is up to 1,400mm of rainfall annually and daytime temperatures vary between 24°C and 30°C. The more southerly regions of Mali have a rainy season from June to October. During the dry season (November to June), the alize wind brings cooler weather from the northeast, dropping temperatures to a pleasant 25°C. But temperatures begin to rise again from February when the hot harmattan winds blow east from the Sahara. ‘River of rivers’ Although large areas of Mali are barren, the country is self-sufficient in food, largely thanks to the River Niger. The river crosses the dry savannah from the southwest and brings life to the country, providing irrigation for agriculture and plenty of fish. No wonder the name ‘Niger’ stems from the Berber ‘gber-n-igheren’, which means ‘river of rivers’. The River Niger is the third-longest river in Africa. It rises in the rainforests of Guinea and flows eastwards, making a horseshoe bend through the Saharan region of Mali, before turning south and heading for its exit to the sea on the coast of Nigeria. The central inland delta of the Niger (between Tombouctou/Timbuktu and Segou) is a key agricultural region, because of the rich alluvial soils here. The river also allows for irrigation areas, for example near the towns of Segou and Mopti. Cotton is the main cash crop Crops grown for domestic consumption include rice, millet, sorghum and maize. Livestock farming (cattle, sheep and goats) is practised across the Sahel region. Cash crops include fruits such as mangoes and guavas, wheat and groundnuts/peanuts. Mali exports both peanut oil and shelled peanuts. But far and away the most important export cash crop is cotton. What happens to a farmer’s cotton? After harvesting, the cotton is taken to a factory. Here, it is cleaned of any twigs or stones and passed through a carding machine, which has fine blades. These separate the fibres and remove any seeds or smaller particles of dirt. The fluffy cotton is then dried and pressed into bales, ready for selling. Mali is also one of the largest producers of fish in western African. The inland Niger delta is an important fishing ground, though stocks are threatened by pollution and dam construction.
Laws and Regulations
The three main taxes and fees imposed on companies operating in the mining sector include customs duties, corporate income tax, and the special tax on certain products (ISCP). The tax office’s Office of Large Companies is the main body responsible for collecting and managing taxes paid to the central government. The National Geology and Mines Office and the National Lands and Survey Office levy sector-specific fees. Contracts Some mining, oil and gas contracts are published. Licenses Mining licenses are awarded on a ‘first come first served’ basis. Production sharing contracts in oil and gas are concluded on the same basis, although only exploration licenses have been awarded to date.
No information has been provided.