PROGRAM: Mali
TITLE AND NUMBER: Increased Value-Added of Specific Economic Sectors, 688-002
STATUS: Continuing
PLANNED FY 2001 OBLIGATION AND FUNDING SOURCE: $5,345,000 DA
PROPOSED FY 2002 OBLIGATION AND FUNDING SOURCE: $1,500,000 DA
INITIAL OBLIGATION: FY 1998 ESTIMATED COMPLETION DATE: FY 2002

Summary: The purpose of the sustainable economic growth (SEG) activity is to increase the value-added or profits of specific economic activities in the cereals, livestock and non-traditional agricultural subsectors. This is being accomplished by increasing access to financial services and boosting Mali's competitiveness in producing, processing and marketing cereals, livestock, and non-traditional products. USAID is supporting interventions that improve private sector marketing policy, stimulate better use of technology, improve job and marketing skills, increase access to both technical and market information, and increase access by Malian entrepreneurs to credit.

In the cereals sector, USAID supports interventions that improve land tenure policy, promote investments in irrigated production, improve natural resource management practices, develop cereal-based products and promote cereal export. For livestock, USAID supports interventions that improve production through animal feed processing facilities; encourage the use of cattle by-products, improve meat, hides and skins processing and marketing, and increase commercial transport of live animals and meat for local marketing and export. For financial services, USAID supports the development of a uniform, transparent regulatory framework, establishment of sustainable micro-finance institutions, and increased access to financial services. For non-traditional products, USAID supports interventions that improve storage and processing for certain fruits and vegetables; that improve access by exporters to market information; and that help develop new markets and products. The SEG activity has had its greatest impact in rural areas, where 80% of Mali's population lives. It is also helping to increase employment and income in urban areas, particularly by supporting microenterprise activities of women and artisans.

The FY 2001 planned obligation will finance: Development Assistance (DA) Agriculture ($1,368,000) to support increased production, processing and marketing of selected products and micro-credit and income-generating activities; and DA Environment ($3,977,000) for supporting natural resource management activities.

The FY 2002 resources requested are for: Development Assistance (DA) Agriculture ($500,000) to support increased production, processing and marketing of selected products; DA Other Economic ($500,000) for micro-credit and income-generating activities; and DA Environment ($500,000) for supporting natural resource management activities.

Key Results: The SEG activity has exceeded most performance targets for this reporting period. Through USAID support, the livestock sector continues to grow with livestock exports increasing 100% over last year's target (279,000 head). USAID's livestock sector interventions include the continued support to privatize livestock health services, improvement of market infrastructure at key collection points throughout the country, and the initiation of concerted efforts with private sector partners to combat illicit export taxes. Rice production grew another 4% over last year's all-time high. Savings mobilized through micro-credit programs increased 15% to $1,130,000.

Performance and Prospects: The SEG activity continues to support improved agricultural market information services, covering an array of commodities (cereals, livestock and alternative commodities), involving domestic, regional and world markets. The second West Africa Market Outlook Conference was held in Mali, with participants from all countries in the region. The new market information system at both the national and local levels is fully operationalized, ensuring more frequent reporting over a larger network of markets. The electronic data management and transmission systems are being used for frequent marketing reports on prices and quantities.

The SEG-targeted sectors performed well during a year of below-normal rainfall. The achievements of the SEG activity are essentially due to sustained support for policy initiatives, particularly in the cereals sector, support to the livestock sector in both improving production and marketing efficiencies, more targeted support to micro-finance institutional partners to improve management and institutional capacity, and sustained, long-term support to natural resource management initiatives in the target zone. Gender concerns are integrated in all SEG activities: 95% of all beneficiaries of the SEG micro-finance program are women. The Office du Niger (Malian government partner) is implementing a program to develop fruit and vegetable production and marketing with women's farming groups, and SEG agro-processing interventions are focused mostly on women entrepreneurs. Sustainability of micro-finance institutions, as measured through operational and financial self-sufficiency, will increase as further management skills are developed among micro-finance personnel.

This past year, the SEG activity began a program of highly targeted, demand-driven technical assistance for partner micro-finance institutions, in response to the need for a stronger focus on the professionalization of the micro-finance sector. USAID support has helped several individual institutions, as well as the Professional Association of Micro-finance Institutions, in strategic planning, business plan development, designing and installing management information systems, and accounting and financial management training. On the agribusiness front, the SEG activity will be starting in 2001 a Development Credit Authority loan guarantee program to provide financing for agribusiness investments, in response to the lack of medium-sized financing in the agribusiness sector.

With SEG activity support, over 11,000 ceramic-lined stoves were sold in 2000, an increase of 38% over record sales in 1999. The estimated reduction in carbon dioxide emissions due to the use of the ceramic-lined stoves is 94,500 metric tons cumulatively.

SEG activities will expand Mali's rice production base by 25,000 hectares by completion in 2002. Rice production in 2001 is targeted to increase by a further 100,000 metric tons. The companion natural resources management program will also continue promotion of farmer investments in production practices that increase yields while decreasing degradation. By 2002, it is expected that over 32,000 farmers will be participating in natural resource management activities.

USAID expects a continuing strong performance for the SEG activity through completion in FY 2002. At that time, USAID will be ready to start implementation of the new economic growth activity, into areas of natural outgrowth from the current strategy.

Possible Adjustments to Plans: None anticipated.

Other Donor Programs: France is the largest donor in agriculture and natural resources. Other major donors and international financial institutions include Germany, the Netherlands, the European Union, Denmark, the World Bank, the African Development Bank and Japan.

Principal Contractors, Grantees or Agencies: USAID's development partners include: CARE, Chemonics, Cooperative League of the USA (CLUSA), Enterprise Works, Michigan State University, Save the Children USA, and World Education.

FY 2002 Performance Tables

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Indicator Information: