Research and consulting in Mali

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Research and consulting in Mali

Country overview:

Mali has been the focus of in-depth research and consulting projects by IOA. Our analysts have noted the dichotomy of Malian geography and society: the arid north, where nomadic livelihoods based on livestock are disrupted by perennial conflict and a lack of security; and the arable southern lands, where much of the population is engaged in subsistence farming. A military coup d’état in 2023 further undermined political stability and resulted in Mali’s diplomatic isolation when the ruling junta withdrew from the Economic Community of West African States (ECOWAS). The country has a low ranking for economic freedom. Unsustainable population growth and the effects of global warming on the large, hot country are significant challenges.

Once militant groups are suppressed and national security is secured, IOA economists forecast that investors will be incentivised to establish industrial agriculture in the south. The country has some gold deposits and underdeveloped mineral resources worth noting.

Key opportunities in Mali:

  • A wide array of mineral resources include gold, uranium, diamonds, copper, iron ore, zinc, manganese, bauxite, lead, lithium, marble, gypsum, phosphate and rock salt
  • Arable land can be utilised for commercial agriculture
  • Kola nuts and salt once made Mali rich, and their export levels today can be significantly increased

Key concerns/risks in Mali:

  • Food security is a threat to more than half the population, poverty levels having risen since 2020
  • Islamic militant groups and a military junta have destabilised national security
  • A poor education system does not produce a skilled and knowledgeable population needed for national growth
Mali

Tips on doing business in Mali:

Starting a business:

  • Foreigners are generally allowed full investment and business ownership rights within Mali. The exceptions to this rule are in the mining and media industries, where foreigners are allowed to own up to 90% and 50% of the business respectively. Acquiring property through leasehold is possible but can be challenging

Doing business:

  • Mali is presently experiencing an internal conflict between government forces, local jihadist elements, and other splinter groups. Ensuring the protection of company assets in such a hostile security environment can be challenging and poses the biggest risk in this space. Other challenges include opaque regulations and political hostility toward western businesses
  • Foreign-owned businesses have been known to complain of unfair tax collection regulations applied to them specifically. Furthermore, the currently hostile relations between Mali and western countries offer companies limited options for redress or assistance during crises
    (Read more at: https://apimali.gov.ml/wordpress/)

Culture and society:

  • Violent crime, banditry, kidnapping, terror attacks and armed clashes are all serious risks, and visitors should ideally take precautions, including the use of armed escorts, especially in rural areas
  • Mali is a primarily Islamic society, and as such, foreigners should take care not to cause religious offense. French is widely spoken in both administrative and commercial contexts

A sample IOA research report on Mali: