PRIVATIZATION PROGRAM REVITALIZES A CRUCIAL INDUSTRY

MALI >Energy sector

In a country as arid as Mali, nothing is more important than water. The main source of the country’s water is the Niger River, which is being tapped for irrigation in order to make more lands available for agricultural development.
The Office du Niger, under the Ministry of Rural Development, administers a massive irrigation project–one of the largest in West Africa–whose full potential is still far from being realized. The office’s main asset is the Markala Dam, which can raise the level of the Niger river by the 4 to 4.5 meters necessary to make it possible to irrigate highlands in the delta area.

A 60% stake of Energie du Mali is due to be sold to the private sector

ISSOUFFON  KEITA
ISSOUFFON KEITA
President and General Manager of Office du Niger

At present, however, only 3% of water from the reservoir behind the dam is used during the dry season, and a mere 1% during the rainy season. The possibilities are enormous, as the president and general manager of the Office du Niger, Issoufon Keita, points out.
“The main problem is attracting investors to the sector,” he says. “The government has no means to carry out its investment policies and that’s why the state is seeking partnerships with the private sector, and with the local population.” The priority at the moment is achieving food security by boosting production through an expansion of the area under cultivation.

The agriculture sector has been further hindered by a lack of available energy. All that is expected to change, however, with the partial privatization of the state-owned water and electric power utility Energie du Mali (EDM).

AMADOU TANDIA
AMADOU TANDIA
General Manager of Energie du Mali (EDM)

Its general manager, Amadou Tandia, says the privatization, in which a 60% stake will be sold to a strategic partner, is needed to finance major expansion in the capacity and distribution networks of both power and water. The remaining 40% will be held by the state, the company’s employees, and by private Malian and other West African investors.
Over the past decade, Mali has been working closely with international lending institutions, including the World Bank, which has been acting as a consultant for the privatization of EDM. Mr. Tandia sees good prospects for EDM and points out that “the rates are very attractive for private companies.”

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