Financial Crime World

Compliance with Financial Regulations Remains a Challenge in Mali

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Introduction

Financial regulations in Mali remain a major concern for investors and businesses due to corruption, poor infrastructure, and ongoing insecurity. Despite efforts by the transition government to undertake reform, corruption persists in procurement, customs procedures, tax payment, and land administration.

Economic Challenges

Mali’s economy is heavily reliant on bilateral donors and multilateral financial institutions, including the World Bank and International Monetary Fund (IMF). The country received significant financial support in 2020 to address the COVID-19 pandemic and post-pandemic economic recovery. However, donors have partially or fully interrupted development support since then.

Key Economic Indicators

  • Mali’s GDP growth decreased to 0.7 percent in 2020 against an initial projection of five percent.
  • The transition government took measures to support households and businesses amid the economic slowdown, further increasing its fiscal deficit.
  • The IMF estimates that GDP growth decelerated to 3.1 percent in 2021 and could decelerate to 2.5 percent in 2022.

Corruption Remains a Persistent Issue

Business contacts report that both Malian and foreign businesses face corruption in various areas, including:

  • Procurement
  • Customs procedures
  • Tax payment
  • Land administration

Efforts to strengthen revenue collection agencies are ongoing following significant revenue shortfalls in 2018 attributed to corruption, weak taxpayer compliance, and fraud.

Investment Climate

The U.S. Department of State maintains a “Level 4: Do Not Travel” travel advisory for Mali due to crime, terrorism, and kidnapping. Investors may consult the website of Mali’s Investment Promotion Agency (API-Mali) at https://apimali.gov.ml/wordpress/ for more information on investing in Mali.

Conclusion

Investors are advised to exercise caution when considering investment opportunities in Mali and to carefully review the risks associated with doing business in the country. The U.S. Department of State Investment Climate Statements website provides more information on investing in Mali and other countries around the world.