Mali

Investment & 
Operational
Climate

Continued instability in northern and central Mali and the minimal presence of the Malian government in many areas have permitted terrorist groups to conduct attacks against Western targets and Malian security forces. Intercommunal violence stemming from conflict between livestock herders and crop farmers in central Mali further contributes to instability. Mali has experienced strong annual economic growth (near or exceeding five%) since 2014 despite ongoing insecurity. The Malian government projected in an April 2020 report, however, that the COVID-19 pandemic would have significant negative effects on the country’s economic situation. While the Government of Mali had projected a five% economic growth rate for 2020, it revised projected economic growth to 0.9% due to the economic impact of COVID-19. The Government of Mali also projected that inflation could reach 4.9% in 2020 in response to challenges importing goods due to COVID-19-related restrictions. Mali continues to depend on bilateral donors and multilateral financial institutions, including the World Bank, International Monetary Fund (IMF), and African Development Bank, to fund major development projects, particularly in health, infrastructure, education, and agriculture. The investment climate benefits from the financial and economic reform processes, such as efforts to improve fiscal transparency and address corruption, that accompany this institutional lending.