Mali Country Profile

Snapshot of the Mali Country Profile

Since the early 1990s, the Malian business environment has been characterised by increasing market liberalisation, openness to foreign trade and investments, and GDP growth rates superior to the overall Sub-Saharan regional average. Nevertheless, the level of foreign investment outside extractive industries, such as the mining sector, remains low. One of the main reasons for the lack of significant foreign investment is the high level of corruption.

Positive developments in relation to corruption and investment:

• The institutional setup to combat corruption in Mali, including laws and agencies, is evidence of a strong political commitment to fight corruption.
• The Investment Code 2005 has reduced the application process to start a business and emphasised investments that promote handcrafts, exports, and labour-intensive companies.

Risks of corruption:

• Enforcing commercial contracts is very cumbersome and it is not uncommon that the settlement of commercial disputes involves bribes.
• Obtaining public utility services, such as telephone and water connections, frequently involves demands for facilitation payments.
• A number of companies have reported that they were expected to pay sizeable bribes in order to obtain import licences. Moreover, government officials often demand facilitation payments from companies transporting goods across Mali's borders and through several control posts within Mali.
• Companies investing in Mali should be aware that public procurement is identified as one of the most corrupt sectors in Mali. A large number of companies report that they have paid bribes to obtain government contracts.