Mali is at a crossroad of civilizations — a country rich in history and home to diverse cultures. Most often known for its legendary city, Tombouctou, Mali is a country of commerce and was, for a long time, at the heart of major trans-Saharan trade.
Mali occupies a strategic geographical position in the heart of West Africa, with robust infrastructure, including 12,860 kilometres of roads connecting Nouakchott, Dakar, Conakry, Abidjan, Ouagadougou and Niamey to Bamako, its capital.
The country’s economy is based on agriculture, which accounts for 39.5 per cent of GDP. It is the second-largest producer of cotton in Africa, producing more than 500,000 tons per year. In addition, it is the third-largest producer of gold in Africa, with production of 50 tons per year. Mali also has significant reserves of iron (two million tons), bauxite (1.2 million tons), uranium (5,000 tons) and other resources, such as phosphate, copper, lead, zinc, lithium and limestone.
Despite a security crisis, Mali has one of the fastest and most resilient economic growth rates in West Africa. Annual GDP growth hovers around 5 per cent. Inflation is controlled at -1.7 in 2019, according to the World Bank.
Mali has maintained a sustained pace of reforms aimed at improving the investment climate. It has repeatedly distinguished itself as one of the most dynamic countries in the region in terms of reforms over the past decade, according to the World Bank’s Doing Business report.
Canada and Mali have a well-established trading relationship, with significant growth potential. The two countries signed an investment promotion and protection agreement that came into force in June 2016. This agreement further promotes and guarantees investments between the two countries.
In addition, Mali has put in place a number of incentive and advantageous tax provisions and regulations favourable to investment. The country has implemented several bold sectoral policies to facilitate mining, petroleum, agricultural and energy investments.
In 2018, bilateral merchandise trade between Mali and Canada reached $23.1 million — including $20.9 million from Canada to Mali, largely in machinery, vehicles and parts, among others, and $2.2 million from Mali to Canada, including canned food and mango juice.
Two Canadian companies, B2Gold and Robex Resources Inc., opened gold mines in Mali in the past three years. The B2Gold mine is one of the largest and represents an investment of more than $600 million. Other Canadian mining companies in Mali are Iamgold and Endeavour Mining Corporation. Canadian mining assets in Mali are worth $1.8 billion and Canadian investment tops $118 million.
Mali is a country that provides opportunities for Canadian companies in various sectors, including mining, energy, agriculture, infrastructure, clean technology and education.
Indeed, a total energy efficiency deficit of 22,600 gigawatt hours is expected by 2030. Demand is at all levels — government, industrial and residential. The hydroelectric potential is estimated at 1,150 megawatts and 5,600 gigawatt hours per year, of which only 300 megawatts are currently exploited. The duration of sunshine varies between 8 and 10 hours per day, producing between 5 and 7 kilowatt hours per square metre of surface per day. Mali boasts more than 300 days of sunshine and more than 600 millimetres of precipitation per year.
The land for solar energy production sites is ceded free of charge by the state. Initial research reveals five basins with high potential for oil and gas. New legislation encourages their exploration.
The southern part of Mali presents ideal conditions for growing a range of oil seeds, including rice and corn. Less than 10 per cent of the estimated 40 million hectares of arable land is cultivated. Mali is the largest producer of livestock in West Africa, with 30 per cent of the total livestock. It is also a large producer of cereals used in the production of livestock feed.
My embassy has implemented an economic diplomacy strategy with Canada and the first step was to create the Canada-Mali Chamber of Commerce in June 2020. This Canadian organization will allow us, in a global, integrated, coherent and dynamic manner, to strengthen economic relations and develop trade between Canada and Mali. It will bring together and mobilize business people from both countries and the diaspora to contribute to the development and economic prosperity of Canada, as well as to the dynamism of the economy of Mali.
Fatima Braoulé Méïté is the ambassador of Mali. Reach her at ambassade@ambamali.ca or (613) 232-1501.
