Economy of Mali

INTRODUCTION

Economy is based on agriculture

Among the poorest countries of the world. The per capita income was $820 in 1999

The potential wealth lies in mining, production of agricultural commodities, adding value to agricultural commodities, livestock, and fish.

AGRICULTURE

70% of Mali's labor force provides 42% of the GDP

Cotton and livestock make up 75%-80% of Mali's annual exports

Small-scale traditional farming dominates the agricultural sector

AGRICULTURE

Most productive agricultural area lies along the banks of the Niger river and extends south to the borders of Guinea, I.C. and B.F.

Average rainfall varies in this region from 0.5 m per year (20 in) around Mopti to 1.4 m (55 in) in the south near Sikasso

Rice

AGRICULTURE

Grown extensively along banks of the Niger River between Segou and Mopti (600 km)

About one-third of Mali's paddy rice is produced along the Niger River

Less than 10% of the land along the Niger River is under irrigation

AGRICULTURE

Dry cereals, legumes, fruits, and vegetables are planted extensively in most parts of the country

Cotton

Mainstay of the economy, cotton is produced in the southern and western parts of Mali

AGRICULTURE

Cotton is not anymore the wealth and happiness of Malian farmers

Why?

US, China, and UE farmers’ subsidies

AGRICULTURE

Stopping subsidies will generate more than $55 million per year to Mali, higher than the total value of the United States’ assistance to Mali

Livestock

Approximately 40% of Mali's herds were lost during the great drought in 1972-74

The level is gradually being restored

Overall size of Mali's herd is not expected to reach pre-drought levels

Consists of millions of cattle, sheep, and goats

AGRICULTURE

Due to drought and diversion of river water for agriculture, fish production has suffered since the early 1980’s

Lack equipment is another major constraint Since economic restructuring with the World Bank and the International Monetary Fund, fertilizer and equipment are not available to farmers from the Central Government

FISHING

The Niger River is an important source of fish, providing food for riverside communities

Surplus smoked, salted, and dried-fish are exported

MINING

Gold accounts for some 80% of mining activity. Gold has become Mali's third-largest export, after cotton and livestock

Considerable proven reserves of other minerals are not currently being exploited

MANUFACTURING

Consists principally of processed agricultural products

FOREIGN AID

Mali is one of the major recipients of foreign aid

Potentialities of the Malian economy

Arable land: 437,000 km2 (of which only 28,000 km2 are presently cultivated)

Niger River (4,200 km long of which 1,780 km flow in Mali)

Irrigable agricultural land: 2,200,000 hectares (only 242,298 hectares are irrigated)

Senegal River (1,790 km of which 700 km flow in Mali).

Livestock: largest producer in the sub-Saharan region

Cotton: largest producer and exporter in west Africa

Fruits and vegetables: mangos, beans, onions, potatoes, tomatoes, shallots

Potentialities

Gold and other mining/extraction

Renewable energies: solar, wind, hydroelectric

Petroleum (crude oil): presently in intense exploration in the north of the country

Potentialities

Existence of a free market

CONCLUSION

Develop renewable energy sources

Set highest priority for agriculture and provide more investment and more diversity

Increase added value of agricultural products to earn more foreign exchange

Improve the literacy level of mal and female farmers and women everywhere

Any Questions?

THANK YOU FOR YOUR TIME!

Kambufu, Keriba Coulibaly