Mali is located southwest of Algeria, flanked by Mauritania and Niger, and its capital, Bamako is located in the east, near the border shared with Senegal, Guinea, Cote d'Ivoire and Burkina Faso. With a population of 10.4 million and an annual birthrate of three percent, it is one of the world's poorest countries with 65 percent of its land area desert or semi-desert.
Opportunities for well-targeted, price-competitive U.S. exports to Mali's private sector may be found in agriculture, agro-industry, telecommunications, mineral exploitation (mining and processing, especially of gold), machinery, new and used clothing, computers, processed food, vehicles, electronics and water resources. Government of Mali contracts for donor-supported development projects hold potential; these areas include equipment and technical services for hydroelectric power generation and distribution, irrigation, public health, telecommunications, and agro-industrial development. France has traditionally supplied Mali with many imported goods, but imports from other countries have gained market share, and Mali's entrepreneurs are open to new competitive supply sources.
Eighty percent of the population engages in farming, livestock raising or fishing. Cotton is Mali's biggest export and production has been expanding. Increasing production and rising world cotton prices increased foreign exchange receipts. The 50 percent CFA devaluation in January 1994, helped boost cotton, livestock and other agricultural exports. Local manufactures include textiles, agricultural implements, cosmetics, batteries, paint, plastics, processed foods and beverages, and cement. Vehicles, machinery, electronics, telecommunications, mining equipment, and most other manufactured items are imported. French products dominate imports in several areas, but the devaluation of the CFA franc and the creation of the economic and monetary union of West African countries helped boost interregional trade. Exports of U.S. goods to Mali totaled US$ 23.2 million in 1995, while imports to the United States from Mali were US$ 5.6 million.
Major business opportunities include: mineral exploitation, especially gold mining and processing, water resource development, livestock and hides/leather, food and beverage processing, machinery, energy (thermal and solar), and new and used clothing imports. International tenders as part of donor-funded development projects offer prospects to sell agricultural, construction, irrigation, telecommunications and computer equipment and services.
There are some roadblocks to doing business in Mali. English is little understood in Mali; businesses must utilize agents or employees who are proficient in French. Marketing and technical literature must be in French. There is insufficient commercial bank credit and interest rates are high. Mali's limited power, communication and transport infrastructure, its landlocked location distant from major markets and its small domestic market for consumer goods due to endemic poverty are other constraints.
French enterprises enjoy advantages over Americans in business relations with Mali, including a common business language, time-honored commercial links, familiarity with French cultural and business traditions and product names, tied development aid programs requiring procurement from French suppliers and generous French trade financing and export subsidies.
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