THE REPUBLIC OF MALI IS BETTING ON IMPROVED INFRASTRUCTURE, REGIONAL INTEGRATION AND LIBERAL ECONOMIC REFORMS TO ATTRACT THE INVESTMENT NEEDED TO STIMULATE GROWTH

ALPHA OUMAR KONARE President of Mali

Mali has in many ways become a model for the developing world. It has achieved political stability following a successful transition to democracy some 12 years ago. It is carrying out a sweeping liberalization of the economy, has a healthy growth rate and has won respect in international affairs.
The government, led by President Alpha Oumar Konare, is building up the momentum of economic growth by pushing hard for regional integration and attracting further foreign investment. Mali’s economic reforms have won the praise of both the International Monetary Fund and the World Bank, which noted that “since mid-1992, the Malian authorities have implemented an ambitious adjustment program which has made considerable progress in reducing financial imbalances and liberalizing its economic growth.”
Foreign investment is key to further growth, President Konare notes. As an example, he says that Mali, already a major producer of rice and other cereals and one of the biggest livestock breeders in the region, “could be the granary of West Africa if we had investments to develop our lands.”

“Mali could be the granary of West Africa,” according to President Konareeconomy”

IBRAHIMA KONATE General Manager of INPS

As part of the economic reform program, the government has taken steps to simplify procedures for foreign investors and provide incentives such as tax credits. Assistance to foreign entrepreneurs is offered by the National Institute of Social Security (INPS), which aims to build a true partnership with investors and is open to new opportunities.
African unity is a subject Mr. Konare passionately believes in and one that is obviously important for a landlocked country of some 11 million inhabitants. “I have great confidence in Africa,” he stresses. “The future won’t be built without Africa, and Africa can contribute a lot. We want to be more united and more responsible. This Africa exists and will assert itself as a partner for other countries and continents.”
Responding to the need for more and better housing is one of Mali’s national priorities and here again the state is encouraging private investment. Three inter-related public or semi-public agencies are taking the lead in this field: the Office Malien de l’Habitat (OMH), the Banque de l’Habitat du Mali (BHM), and the Agence de Cessions Immobilières (ACI).

MAMADOU BABA DIAWARA President and General Manager of BHM

The president and general manager of the Banque de l’Habitat du Mali, Mamadou Baba Diawara, explains that he wishes “to encourage U.S. investors that the BHM can be a good partner for them.” The BHM primarily promotes home ownership through retail credits, but as Mr. Diawara notes, “our bank is a universal one” and has also received requests for financing the construction of hotels, medical facilities “and anything related to civil engineering. We don’t have all the resources to satisfy the demand, so with foreign investment there are great profits to be made.”
The OMH’s general manager, Moussa Baba Diarra, agrees that there are numerous investment opportunities in sectors such as mining, textiles and telecommunication, but his publicly funded agency is specifically designed to promote housing construction and urban development. One area of special interest for the OMH is promoting commercialization of local construction material as a means of reducing costs.
In encouraging investment, the OMH acts as an intermediary with financial institutions and can guarantee or counter-guarantee credits.

MAMADOU DEMBELE President and General Manager of ACI

The ACI, a semi-public corporation that works closely with BHM and OMH, is more directly involved in real estate development. It is carrying out a number of projects involving the building of entire communities: homes, schools, health centers and mosques. While the ACI’s operations were previously centered on Bamako, it is also expanding to provincial capital cities.
The ACI’s president and general manager, Mamadou Dembele, is convinced that “foreign investors could play an important role in the housing sector.” He advises, however, that they take into account that the average income in Mali is low and try to make as much use as possible of local, less expensive building materials