The World Bank in Mali

A vast country in the Sahel, Mali is a low-income economy, with little diversification and exposed to fluctuations in commodity prices. Its rapid population growth (fertility rate of 5.88 children per woman in 2018¹) and climate change threaten agriculture and food security.

The extreme poverty rate increased due to the combined effects of security crises and the pandemic, reaching 15.9% in 2021. Extreme poverty worsened further to 19.1% in 2022, driven by the erosion of purchasing power among the most vulnerable, due to rising prices, consumption, and low economic growth. The densely populated rural areas in the south concentrate 90% of the country’s poverty.

Political situation

Mali has been experiencing a period of instability and conflict since the 2012 military coup and the occupation of the northern regions by armed groups.

Following the institutional breakdown on August 18, 2020, a government and a National Transition Council (CNT), acting as a National Assembly, were set up pending the organization of democratic elections. Colonel Assimi Goïta was proclaimed head of state on May 28, 2021, by the Constitutional Court.

The inter-Malian dialogue for peace and national reconciliation, organized by the transitional authorities from April 13 to May 10, 2024, was presented as an initiative aimed at restoring peace and social cohesion through “consensual solutions.” However, two recommendations garnered the most attention. One concerns the extension of the transition from three to five years before democratic elections. The other is the amendment of Article 9 of the Transition Charter to allow President Assimi Goïta to run in the next presidential election.

On July 11, the government lifted the suspension that had been imposed since April 10 on political parties. The authorities had suspended, "until further notice," the activities of political parties and associations with a political nature across the country, citing "political and security reasons."

The country's security situation significantly deteriorated on September 17, following terrorist attacks targeting the National Gendarmerie School and Bamako-Sénou Airport. A branch of Al-Qaeda’s local affiliate (JNIM) claimed responsibility for the attack. According to media reports, these attacks resulted in several deaths and injuries.

Economic situation

The economy proved resilient in 2022, with GDP growth estimated at 3.5%, despite the combined effects of ECOWAS sanctions and the consequences of the war in Ukraine, reflecting a rebound in cereal production and strong performance in the mining sector. GDP growth is expected to reach 3.7% in 2024 (0.6% per capita), supported by agriculture and services, while persistent electricity shortages are likely to hinder industrial production. The extreme poverty rate is expected to fall to 20.8%, due to lower inflation of 1.2%.

The sharp deterioration in terms of trade in 2022 eased in 2023, reflecting a drop in oil prices amidst rising gold prices. However, this was moderated by a decline in cotton exports following a weak campaign in 2022 and a recovery in import flows after the lifting of ECOWAS sanctions. These developments led to the stabilization of the current account deficit at 6.8% of GDP in 2023, while the decline in external financial flows intensified in 2023.

Budget expenditures, which had been accelerating since 2020 to address multiple shocks, continued to rise in 2023, driven by the wage bill and security spending. At the same time, tax revenues rebounded in 2023 with the resumption of trade flows after the lifting of ECOWAS sanctions and the reduction of inflationary pressures and fiscal spending needs, leading to a stabilization of the fiscal deficit at 4.8% of GDP.

Following the lifting of sanctions announced by ECOWAS, short-term priorities include preserving the benefits of regional integration through the establishment of bilateral agreements for the free movement of goods, services, people, and capital with ECOWAS countries that are not members of WAEMU, while continuing reforms aimed at improving public expenditure management and tax administration performance.

(1) Data from World Bank – World Development Indicators 2018

Last Updated: Oct 07, 2024

The World Bank’s action in Mali is guided by a partnership framework designed to address the challenges of the post-2012 and 2020 crises. A new partnership framework, covering the 2024-2026 period, is currently being developed.

The International Development Association (IDA), the World Bank Group’s institution that supports the world’s poorest countries, currently finances 10 national projects and 9 regional projects in Mali, for a total amount of just over 1.65 billion dollars (including grants and loans). These projects support development in sectors such as energy, agriculture, roads, social protection, water and sanitation, women’s empowerment, education, and health.

International Finance Corporation (IFC)

The IFC, the World Bank Group’s private sector development arm, is implementing projects at the heart of Mali’s development. In collaboration with the World Bank and the World Bank Group’s Sahel Regional Initiative, the IFC facilitates reforms to promote private sector growth. To attract investors and reduce risks associated with these projects, it provides funding and technical assistance.

In Mali, the IFC mobilizes the private sector to support the country’s economic recovery and resilience. For the 2021-2025 period, the strategy focuses on the following priorities:

• Supporting the response to COVID-19 by backing the banking sector and microfinance institutions;

• Restructuring and restoring the viability of the private sector to mitigate the crisis's impact on real sector businesses and financial institutions by focusing on investments in the energy sector and supporting reforms in telecommunications and digital finance;

• Supporting economic recovery and reconstruction by encouraging reforms to improve the business environment in order to stimulate investments in infrastructure, agriculture, and agro-industry, and to promote financial inclusion;

The IFC in Mali also works on technical assistance projects aimed at improving the operations of small and medium-sized enterprises and the business climate, in collaboration with the World Bank.

As of August 31, 2024, IFC commitments in Mali totaled 107.56 million dollars and included investments in the finance, infrastructure, services, and agro-industry sectors.

Last Updated: Oct 07, 2024

The Accelerating Progress Toward Universal Health Coverage Project (PACSU)

PACSU, which closed in June 2024, aimed to improve the use and quality of reproductive, maternal, neonatal, child, adolescent, and nutrition health services, particularly among the poorest households in targeted areas. It benefited more than 4 million individuals, including women of childbearing age, adolescents, and children in the Koulikoro, Mopti, Ségou, and Gao regions. Under results-based financing, PACSU recorded the following key outcomes:

• 2,265 health facilities were contracted out of 2,328 planned enrollments in the 4 covered regions, representing an enrollment rate of 97.3%;
• 697 new buildings were constructed;
• 385 buildings were renovated or rehabilitated;
• 104 community health centers were built and equipped with laboratories;
• 329 motorcycles were purchased for advanced strategy activities;
• 17 water supply systems were installed in health facilities;
• 337 qualified professionals (doctors, midwives, obstetric nurses, laboratory technicians, etc.) were recruited;
• 459,855 indigents were supported by healthcare facilities;
• The beneficiary satisfaction rate regarding the quality of care in health facilities reached 91%;
• 980,598 households received home visits from community health workers;
• 92% of children were screened for acute malnutrition.

The Rural Accessibility Improvement Project (PAAR)

PAAR seeks to facilitate rural communities' access to markets and basic services through the development of rural roads, by addressing critical points and establishing a routine maintenance mechanism to sustain investments. During its first two phases, the project resulted in the development of 1,016.46 km of rural roads, or 62.73% of the target. Another 604.027 km is currently under development (37.27%). The completed developments have led to:

• Opening up a total estimated population of 625,785 people in 13 districts, 48 rural communes, and 163 nearby villages;
• Improving access to more than 300 schools and health centers;
• Providing the covered villages with 132 socio-economic infrastructures based on their requests, including: 43 blocks of 3 classrooms (129 rooms, each equipped with 24 desks or 3,096 desks and 6,192 new student capacities in the beneficiary schools); 24 schools that received fences, thus providing physical and psychological protection for students and teachers; 22 health centers were rehabilitated, providing a better care environment for patients and a better work environment for medical staff; 27 boreholes equipped with human-powered pumps to provide good-quality water to the beneficiary populations.

Urban Water Supply Project

In 2019, 65% of Bamako’s residents had access to drinking water, and subscribers faced significant shortages. To address this issue, the government developed a multi-donor program, called the Bamako Water Supply Project from the Kabala locality, which aims to provide quality drinking water services to 95% of the population by 2025:

• New production and storage facilities have significantly reduced shortages for more than 600,000 people;
• Launched in June 2019, the 110,000 social connections program, including 59,000 funded by the World Bank, has provided access to domestic drinking water for more than 2,117,100 people, including 1,258,310 funded by IDA, or 61.1%;
• Approximately 400,000 people will be able to access drinking water through the construction of more than 1,200 standpipes, 300 of which are funded by IDA, or 25%.

IDA funding has also strengthened water supply systems in Gao (Gao region), Bougouni and Sélingué (Bougouni region), Markala (Ségou region), Kita (Kita region), and Nioro du Sahel (Nioro region). It has provided an additional 356,000 people with access to quality water services in the six secondary centers of the aforementioned cities.

Mali Electricity Sector Improvement Project (PASEM)

Approved in June 2019, the PASEM aims to improve i) the reliability and efficiency of electricity supply in Bamako, and ii) the technical and commercial performance of the electricity company EDM. As of the end of August 2024, the project has:

• Expanded and modernized two high-voltage substations, provided, and installed 43 low-voltage electrical substations;
• Built 210 km of medium and low-voltage power grids, connecting 70,668 people to electricity;
• Provided technical assistance services and capacity building to various actors in the electricity sector to improve the operation of electrical infrastructure and electricity service delivery, and prepared and implemented projects.

Last Updated: Oct 07, 2024

The World Bank collaborates with other technical and financial partners in Mali (bilateral and multilateral donors as well as the United Nations System on site). It works closely with the private sector, civil society, municipalities, and universities.

In July 2017, Germany, the African Development Bank, the World Bank, France, the European Union, and the United Nations Development Programme launched the Sahel Alliance to provide a coordinated and tailored response to the challenges faced by Sahel countries (Burkina Faso, Mali, Mauritania, Niger, and Chad). Since then, Denmark, Spain, Italy, Luxembourg, the United Kingdom, and the Netherlands have joined the Alliance.

Last Updated: Oct 07, 2024