COUNTRY PRIVATE SECTOR DIAGNOSTIC - Creating Markets in Mali - Mobilizing the Private Sector for Economic Resilience and Recovery - Executive Summary - April 2022

Jul 19, 2026

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Between 2014 and 2019, Mali’s economic growth averaged about 5% but reversed in 2020 as COVID-19 and political instability tightened fiscal space and disrupted private-sector activity. Fragility has reduced market access, threatened food security, and weakened human capital, compounded by sanctions and repeated military coups. With rising debt and persistent security risks, the government refocuses on unleashing private-sector potential through improved business conditions, competitive neutrality, expanded public-private partnerships, and digital solutions. These actions align with the 2018 CREDD policy framework to support a resilient, inclusive recovery.

LanguageEnglish

CategoryResearch & Report

FormatPDF

Pages18

Reading Time45 min

Executive Summary

Mali’s growth reversal and constraints

Fragility and impacts on markets and welfare

Policy shift to energize investment and markets

Priority reforms: business environment, PPPs, neutrality, digital solutions

Link to CREDD framework

Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public COUNTRY PRIVATE SECTOR DIAGNOSTIC CREATING MARKETS IN MALI Mobilizing the Private Sector for Economic Resilience and Recovery Executive Summary April 2022 About IFC IFC—a member of the World Bank and member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create marketsand opportunities in developing countries. In fiscal year 2021, IFC committed a record $31.5 billion to private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity as economies grapple with the impacts of the COVID-19 pandemic. For more information, [visit www.ifc.org](visit www.ifc.org). © International Finance Corporation 2022. All rights reserved. 2121 Pennsylvania Avenue, N.W. Washington, D.C. 20433 [www.ifc.org](www.ifc.org) The material in this work is copyrighted. Copying and/or transmitting portions or all of this work without permission may be a violation of applicable law. IFC does not guarantee the accuracy, reliability or completeness of the content included in this work, or for the conclusions or judgments described herein, and accepts no responsibility or liability for any omissions or errors (including, without limitation, typographical errors and technical errors) in the content whatsoever or for reliance thereon. The findings, interpretations, views, and conclusions expressed herein are those of the authors and do not necessarily reflect the views of the Executive Directors of the International Finance Corporation or of the International Bank for Reconstruction and Development (the World Bank) or the governments they represent. Cover Photo: World Bank EXECUTIVE SUMMARY Between 2014 and 2019, Mali experienced positive economic growth, which was reversed in 2020 by the COVID-19 pandemic and political instability, resulting in more constrained fiscal space. Until the onset of the COVID-19 pandemic and despite the deteriorating security situation, Mali’s economic growth averaged five percent since 2014, on par with its long-term potential.1 This growth has been largely driven by commodities (gold exports) and agriculture, and was buoyed by high levels of remittances, foreign aid, and external borrowing. Resilient gross domestic product (GDP) growth and sound macroeconomic performance have, however, been reversed by the COVID-19 pandemic and the multiple sanctions imposed by the Economic Community of West African States (ECOWAS) since the first coup on August 18, 2020. Despite efforts by the government of Mali to contain the economic fallout of the COVID-19 pandemic and political turbulence, these factors are taking a heavy toll on Mali’s private sector and economic outlook, with GDP contracting by 1.2 percent in 2020 from 4.8 percent real GDP growth in 2019—as a result of subdued global demand and the impact of restrictive measures adopted to contain the spread of the virus.2 Mali’s fragile state status has also taken a toll on economic activity and social welfare by reducing access to markets, threatening food security, and degrading human capital indicators. The low-income country is one of the least developed in the world, ranking 184th of 189 countries, according to the 2020 Human Development Index, and faces severe challenges related to a nondiversified economy, high poverty rates, regionalized internal conflicts, political instability, and violence, hallmarks of the fragility that undermines economic resilience. Fragility has deep-seated roots in Mali, starting from weak political and economic governance and a lack of social accountability, among other underlying causes. Recent years have proved especially difficult, with a succession of military coups in 2012, August

FAQs

What key events reversed Mali’s economic growth in 2020?

COVID-19 and political instability reduced fiscal space and constrained activity. Sanctions and restrictive measures also contributed to GDP contraction in 2020.

How has fragility affected Mali’s private sector and broader economic conditions?

It has reduced access to markets, threatened food security, and degraded human capital indicators. Repeated coups and insecurity across regions further undermined resilience.

What strategy is proposed to mobilize Mali’s private sector for recovery?

Improve the business environment, crowd in private participation in infrastructure and services, ensure competitive neutrality, expand transparent and competitive PPPs, and leverage digital solutions and e-government.

Jul 19, 2026

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