MALI: US Firms Urged to Conduct Due Diligence Amidst Corruption Concerns
The United States Embassy in Mali has issued a stark warning to American businesses operating or planning to operate in the West African nation, emphasizing the importance of conducting thorough due diligence before investing.
Corrupt Judicial System
Mali’s judicial system is notorious for being plagued by corruption, political influence, and bribery. This can lead to lengthy and costly disputes that foreign investors may find themselves entangled in. The dispute resolution process often takes years to resolve, with foreign investors frequently falling prey to corrupt practices.
Recommendations for US Firms
To mitigate these risks, the US Embassy recommends partnering with local attorneys who possess in-depth knowledge of Malian laws and regulations. Additionally, exercising extreme caution when dealing with Malian distributors or partners is crucial in protecting interests.
Gold Importation Risks
Importing gold from Mali is considered a “high-risk activity” due to several cases where gold was switched or stolen just before being transported to the United States, leaving investors without recourse. Moreover, artisanal gold has been linked to money laundering, child labor, and human trafficking.
Resources for US Firms
To assist US companies in navigating these challenges, the U.S. Commercial Service offers:
- International Company Profile (ICP) services, which provide valuable insights into potential business partners
- Gold Key Services (GKS), which offer expert guidance on local market conditions and business practices
- Export Assistance Centers across the United States
Best Practices for US Firms in Mali
To minimize risks associated with doing business in Mali:
- Conduct thorough due diligence before investing or partnering with local businesses
- Partner with local attorneys who possess in-depth knowledge of Malian laws and regulations
- Exercise extreme caution when dealing with Malian distributors or partners
- Leverage the expertise of organizations like the US Commercial Service
By following these best practices, US firms can protect their interests and minimize the risks associated with doing business in Mali.