Mali WT/TPR/S/43
Page 45
IV. TRADE POLICIES AND PRACTICES BY SECTOR
(1) INTRODUCTION
1. As part of its economic reforms, Mali has substantially liberalized most sectors of activity and
reduced State participation in national economic life.  In the agricultural sector, the Ministry of Rural
Development has been restructured and the veterinary services have been substantially privatized.
Apart from the cotton and tobacco sectors, most agricultural activities, including product marketingand input distribution, have been opened to private operators.  The main State enterprises directly
involved in the production and/or marketing of agricultural products are the Malian Textile
Development Company (CMDT) for cotton, Huicoma for oil production, the  Office of the Niger for
rice, the Malian Agricultural Products Office (OPAM)  for management of the national security stock
and food aid, the Malian National Tobacco and Matches Company (SONATAM) for imports of theseproducts and the Malian Livestock and Meat Office (OMBEVI) for livestock products.
2. The agricultural sector enjoys the strongest tariff protection (average import duties per
sector), followed by the mining and then the manufacturing industries.  Agriculture, for which Mali
possesses a sizeable development potential - agriculture already makes the greatest contribution to the
country's GDP and export earnings (Chapter I.1), is still the most highly protected sector (in terms ofimport duties), followed by mining and then by manufacturing.  The negative escalation of import
duties is not conducive to the development of the manufacturing sector.  The introduction of the
WAEMU common external tariff should alter the tariff-protection structure per sector.  While signs of
recovery have been noted in the manufacturing sector following the devaluation of the CFA franc, the
high prices of energy, transport and telecommunicat ions (Table IV.1) and the high cost of inputs,
which are mainly imported, place a strain on production costs and limit the international
competitiveness of Malian products.
3. In the mining sector, the number of categories of rights is currently seven, all of them
accompanied by establishment conventions.  Under the mining code provisions, the State reserves the
right to take a 20 per cent holding, including a share free of charge amounting to at least 10 per cent,
in the capital of mining companies.  It is planned to amend the mining code in order to attract
investment in this sector.  The benefication of mining products prior to export, and increasing thesector's contribution to improving the balance of trade, are among the priorities of Malian mining
policy; exports of precious substances (e.g. gold and diamonds) in the raw state are prohibited.
However, mining products are subject to a tax of 3 per cent on a pithead value;  exports of precious
substances are also liable to the 3 per cent CPS.
4. The reforms have also contributed to the liberalization of the service sector, with the particular
exception of telecommunications, which are still a State monopoly.  However, the undertakings entered
into by Mali under the General Agreement on Trade in Services are limited to adult education services in
the handicraft field and to methods of supplying catering and hotel services.  A reversal in the situation is
therefore still possible as regards unilaterally liberalized services.WT/TPR/S/43 Trade Policies Review
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Tableau IV.1
Cost of energy, water, telecommunications and transport:  comparison with other WAEMU countries
Electricityb
industryDieselb
CFAF/lWaterb
CFAF/m3Telephonea
CFAF/mnTransportb
road t/km.Transportb
rail t/km.Transportb air
Kw/H France USA CFAF CFAF CFAF/kg.
Burkina Faso 51 312 1,026 2,262 1,482 42.5 52.5 3,000
Benin 41 135 293 1,760 1,705 47 28.3 2,900
Côte d’Ivoire 37 270 424 1,390 870 37.2 31.4 2,900
Mali 55 275 218 3,060 1,360 43.6 26.3 3,000
Niger 55 265 319 1,800 1,285 50.1 31.4 2,800
Senegal 56 300 614 1,330 800 33.6 26.3 2,200
Togo 53 195 257 1,500 857 36.7 42.1 2,800
a 1996
b 1995
c Destination Paris.
Source: CEFTE (1997b), Regional Support Programme for the Integration of the WAEMU countries, WAEMU.
(2) AGRICULTURE AND RELATED ACTIVITIES
(i) General remarks
5. About 60 per cent of Malian territory, in this case the north of the country, is desert.
Cultivation takes place in the south along the river Niger, the main irrigation source.  Livestock
production is carried on in the north of the country around water points.  Movements of herds towards
water courses during the dry seasons lead to confli cts between livestock raisers and farmers, whose
crops are destroyed by the animals.  Animal and plant production is based on traditional practices
which limit yield; fertilizers are little used except for cotton growing.  Farms are often family-ownedand combine cash and subsistence crops; however, cotton producers are organized into cooperatives
supervised by the Malian Textile Development Company (CMDT).  Droughts, which have become
more frequent since the 1970s, exacerbate shortages of cereals and periodically decimate part of the
livestock, which is composed mainly of cattle, sheep, goats and poultry.  The chief crops are cotton,
millet, sorghum, fonio, rice, maize, tobacco, sweet potatoes, manioc, fruit (particularly mango),groundnuts, shea nuts and vegetables.
6. Between 1980 and 1996 food production rose by an average of 4.9 per cent in quantity per
year and that of industrial crops by 3.6 per cent per year.  These growth rates exceeded the growth rate
of the economy as a whole and the rate of populati on growth.  This growth in production is due to an
increase in cultivated areas which was not always accompanied by increased yields.  Yields of riceand maize increased strongly but those of millet and sorghum fell.  This fall in yields is due mainly to
the progressive impoverishment of the soil, inadequate use of fertilizer and equipment and the
employment of rudimentary traditional methods of cultivation.  The performance of the cotton sector
reflects the better support it received in comparison with other crops (Table IV.2).
7. Generally speaking, the agricultural side of the reforms carried out under the structural
adjustment programmes has led to a reduction in State participation in the sector.  The agricultural
reforms are aimed at increasing productivity and improving the sector's competitiveness through
market forces, the active and extensive participation of private operators in all activities (from
production to marketing) and the development of research.  The rural economy institute set up in 1997
should contribute to these objectives by helping to intensify cultivation methods and diversifyMali WT/TPR/S/43
Page 47
production.  The Ministry of Rural Development has been reorganized so as to adapt it to the new
environment; its services have been redirected and strengthened.  Veterinary care has been privatized
in most regions of the country.  Input prices have been liberalized; however, units like the CMDT
grant flexible payment terms for inputs delivered to producers on credit.  Contract plans have been
signed between the State and several companies operating in the sector, particularly the CMDT, the
Malian Agricultural Products Office (OPAM) and the Office of the Niger.
8. The provision of low-cost supplies to city markets has been a government priority since
independence.  Until the early 1980s supply operations were managed entirely by the State; OPAM,
the State monopoly for the marketing of basic foods, fixed the official price of these products.
Following a series of droughts in the 1970s, particularly since 1982, Mali has been conducting a
cereals and food-safety policy designed to transfer certain activities to private hands and improve themanagement of OPAM.  This policy is based on two main programmes, the Cereals Market
Restructuring Programme (PRMC) and the Agriculture Sector-Adjustment Programme (ASAP),
which have acted as  back-ups for the reforms.  A transitional  contract plan was signed between the
State and OPAM for 1997; another more specific contract should be signed for the 1998-99 period, by
the end of which the chief tasks must have been completed.
9. The chief current public-service tasks of  OPAM are management of the national security
stock and food aid.  OPAM must also establish a monitoring unit which can be immediately activated
in the event of a major crisis.  The size of the national security stock is capped at 58,500 tonnes, of
which 35,000 tonnes is in the form of cereals (millet and sorghum).  This physical stock is
supplemented by a financial instrument, the Food Security Fund, which is equivalent in money terms
to 23,500 tonnes.   OPAM also has commercial responsibilities:  management of the Market
Information System (SIM), modernization of the cereal markets and development of  the  cereal trade.The food-security system remains expensive and highly dependent on outside funding.
10. The reforms have led to the liberalization of  trade (imports, exports and local distribution) and
cereal  prices.  Only the seed cotton price is still controlled.  Agricultural, livestock production and fishery
activities are exempt from VAT.  The average of import duties on agricultural products is 29.8 per cent.WT/TPR/S/43 Trade Policies Review
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Table IV.2
Principal plant and animal products, 1990-98
(in thousands of tonnes unless otherwise stated)
1990 1991 1992 1993 1994 1995 1996 1997 1998
Products of food-producing
agriculture
Millet 758 663 801 524 637 808 636 665 681
Sorghum 658 478 693 542 666 672 639 486 471
Paddy rice 304 254 409 369 385 422 416 553 626
Maize 207 181 236 177 261 297 243 267 292
F o n i o 3 8 2 0 3 6 1 9 2 74 33 83 9 . .
Sweet potatoes 12 12 13 13 13 13 14 14 ..
B e a n s 1 7 1 4 1 8 1 4 1 71 91 71 7 . .
Products of industrial agriculture
Groundnuts 154 176 176 126 147 213 156 133 137
Tobacco 0.5 0.5 0.5 0.5 0.7 0.7 0.6 0.7 ..
Seed cotton 265 317 313 353 276 316 406 452 528
W h e a t 1 9 1 6 2 2 1 6 2 02 22 02 0 . .
Livestock products
Cattle ('000 head) .. .. 5,200 5,245 5,542 5,708 5,879 6,056 6,237
Sheep, goats ('000 head) .. .. 11,800 11,800 12,552 13,179 13,838 14,530 15,256
Pigs ('000 tonnes) 0.2 0.2 0.2 0.3 0.3 0.3 0.3 0.3 ..
A s s e s ,  c a m e l s ,  h o r s e s  ( ' 0 0 0  t o n n e s ) 6 6  6 6 6677. .
P o u l t r y  ( t o n n e s ) 5 5 6 6 6666. .
E g g s  ( m i l l i o n ) 6 1 6 2 6 4 6 5 6 66 86 97 0 . .
Milk (millions of litres) 147 150 153 157 160 163 166 170 ..
S k i n s  ( ' 0 0 0  o f  t o n n e s ) 3 3 3 3 3334. .
.. Not available.
Source: Malian authorities.
(ii) Policy by product category
(a) Cotton
11. The agriculture sector is dominated by cotton growing (20 per cent of  total value added of the
agricultural sector, including livestock production, forestry and fisheries).  Mali is the leading cotton
producer in sub-Saharan Africa.  This crop has the advantage of being less affected by climatichazards than cereals.  Cotton producers also enjoy other advantages:  a regular supply of low-cost
inputs, access to credit and repairs to tracks.
12. The Malian Textile Development Company (C MDT) is a mixed-investment company in
which the Malian State holds 60 per cent of the capital and the French Textile Fibre DevelopmentMali WT/TPR/S/43
Page 49
Company  (CFDT) 40 per cent.  Organization of the cotton sector is governed by a contract plan
signed by the State, the CMDT and the producers.  The current contract expires on
30 September 1998; it defines the tasks of the CMDT, the payment methods for the various parties
involved in the sector, the commitments of the CMDT, the State and the producers, and monitoring
procedures.  The CMDT is responsible for the integrated development of the cotton sector:  it buys
and processes raw cotton, markets fibre and seed and carries out extension and training activities withrespect to producers, as well as research activities.  The State has also assigned to it a rural
development and public-service function for which it receives an appropriation from the national
budget.  During the period 1992-1998 the State allocated CFAF 5,978 million to CMDT, of which
1,366 million for financial year 1997-98 (funds not yet raised as at August 1998).
13. The contract plan sets a floor price for the purchase of seed cotton from the producer.  The
price paid to cotton producers is determined jointly by the CMDT general management and the
farmers' association.  The contract plan provides for a price-stabilization mechanism consisting of a
stabilization fund replenished by the State or donors, by STABEX and by the CMDT when its gross
margin
1 is positive.  The CMDT calls on the stabilization fund only when its gross margin is negative.
The financing it obtains for this purpose is equal to the amount of the gross margin and is designed toguarantee the floor purchase price to the producer.  When the CMDT's net margin (available gross
margin minus  contribution to the stabilization fund) is positive, the enterprise is required to deposit
35 per cent of the amount of this margin.  This will make it possible to distribute to producers, during
the subsequent cotton season, a refund representing the producers' share of the profits for the sector.
The price of processed cotton is free.
14. The CMDT supplies producers with agricultural inputs.  The enterprise takes stock of
producers' needs every year, sends out an international invitation to tender and sells the inputs to theproducers on credit at cost price.  The CMDT exports 99 per cent of cotton fibre production and sells
the rest (1 per cent) to local textile enterprises,  namely the Malian Textile Industry (ITEMA) and the
Malian Textile Company (COMATEX), the total capacity of these enterprises being low compared
with the quantity of cotton produced.  Devaluation has made the cotton sector competitive and
profitable since the 1994-95 cotton season even if certain elements of the production costs, inparticular the prices of imported inputs and the CFAF equivalent of previous loans in foreign
currency, have strongly increased; the quantities produced have increased greatly since then
(Table IV.2).  The CMDT is subject to the ordinary-law fiscal regime and particularly to the tax on
performance.  However, all export taxes, includ ing the CPS, are abolished for the duration of the
contract plan.
15. Cotton seeds are sold in their entirety to th e Huicoma Company, an oil mill which processes
cotton seed, groundnuts and shea nut kernels into oil and soap.  Huicoma also produces animal feed.
Sales of such feed is controlled as it is subject to heavy speculation.  Huicoma has the monopoly of oil
production, which it sells exclusively on the domestic market.  As its production has become
inadequate to meet national demand, the enterprise has for some years been importing neutral oilwhich it processes.  Huicoma does not have the monopoly on imports of these products:  traders
purchase oil in barrels from Côte d'Ivoire.  Huicoma employs 1,170 people and produces around
85,500 tonnes of animal feed, 65,500 tonnes of cott on seed cake, 36,000 tonnes of refined oil and
16,000 tonnes of soap.
16. The average import duty  on cotton is 22 per cent compared with 34.5 per cent on other plant
textile fibres (Table AIV.1).
                                                     
     1The gross margin equals earnings from cotton minus stabilized charges.WT/TPR/S/43 Trade Policies Review
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(b) Cereals
17. Depending on the season (favourable climatic conditions), Mali produces cereal  surpluses.
Malian consumption of cereals per capita per annum is estimated at 204 kg.  Cereal availability per
capita per annum is assessed at 221 kg.  However, there are great disparities between zones.  In the
Gao, Timbuctoo and Kidal regions and certain zones of the Mopti region, the risks of food
insufficiency are great.  The security stock administered by OPAM has enabled national cerealshortfalls due to climatic hazards to be reduced.
18. The main cereals produced in Mali  are sorghum (25 per cent of cereal production in 1997),
millet (34 per cent), paddy rice (28 per cent in 1997 compared with 16 per cent in 1991) and maize
(13 per cent).  Total cereal production, which was 2.2 million tonnes in 1995, dropped markedly and
then settled down at 1.9 million tonnes in 1996 and 1997.  This drop is due to the worsening inclimatic conditions, although Mali had enjoyed extremely good rainfall in 1994-95.  Cereal crops are
essentially rain-fed and thus strongly affected by climatic hazards.  Durum wheat is cultivated mainly
in the Timbuctoo region as well as in the Niger valley, on small individual plots.  Malian wheat
production, although classified second in the subregion, did not exceed 3,000 tonnes in 1997.
2
19. Rice is grown according to two systems:  traditional cultivation (by natural submergence and
rainfall) and irrigated or controlled-submergence cultivation. Traditionally grown rice is largely
consumed by the producer.  Average yields are 5 tonnes/hectare for irrigated cultivation compared
with under 1 tonne/hectare for traditional cultivatio n.  Mali possesses great rice production potential.
Rice-growing policy is currently directed at developing this potential, expanding the irrigated area and
encouraging private initiatives, as well as at processing.  The national market, particularly the urban
market, is expanding strongly and Malian production could find outlets at the subregional level.
20. The restructuring of the Office of the Niger, which produces over half the national quantity of
rice, has helped the rice sector to increase its competitiveness.  Local non-industrial processing
capacity exceeds total production.  However, the quality of non-industrially husked rice should be
improved.  Devaluation encouraged the substitution of Malian rice for imported rice.  However, the
rice price is still high compared with that of other local cereals and devaluation also resulted in the
large-scale substitution of millet for rice in local consumption.
21. Average import duties on cereals are 28.7 per cent compared with 30.5 per cent on cereal-based
preparations and 23.2 per cent on flour and other milled products.
(c) Oilseeds
22. After cotton, groundnuts are the main cash crop in Mali.  However, only 5 per cent of
production on average is currently marketed owing to the closure in 1990 of the Sepama Companywhich held the monopoly for this activity;  the gap left  by this company has still not been filled.  The
difficulty in marketing has helped to slow down th e expansion in cultivated areas.  The takeover of
the company by Huicoma in 1997 will doubtless revitalize groundnut production by solving the
problems of disposing of this product.
23. As in other countries of the subregion, shea nut production is a gathering activity in Mali.  Mali
has a shea nut processing factory which is at present closed.  The State, which has guaranteed its
financing, is seeking a buyer;  negotiations are taking place with Huicoma.  The average import duty is
23.9 per cent on oilseeds and 14.1 per cent on oils.
                                                     
     2CEFTE (1997a).Mali WT/TPR/S/43
Page 51
(d) Sugar
24. Sugar production is extremely  variable; however, a trend towards increasing production has
been noted since 1985 (Chart IV.1).  The Sukala Company is the only Malian enterprise for
processing local sugar cane.  Its production capacity greatly exceeds its actual production.  This
enterprise, 100 per cent of whose capital was held by the Malian State until 1996, has been partly
privatized (Table III.6).
25. Sugar comes in customs category III and therefore enjoys 35 per cent tariff protection
(Chapter III.(2)(ii)(a)).  Sugar is the only product currently liable to the Short-Term Import Tax (TCI),
which amounted to 55 per cent at the end of 1997.  Sugar and sugar mills are subject to the highest
average import duty (36.4 per cent), with a minimum of 5 per cent and a maximum of 75 per cent owing
to the application of the TCI.
(e) Fruit and vegetables
26. The importance of the fruit and vegetable sector remains unclear because of the lack of
statistics, the informal nature of the activities connected with it and the geographical dispersion of the
areas under cultivation.  Market-garden pr oduction was estimated at 140,000 tonnes in 1994.
Vegetables may be grown in traditional fashion in the vicinity of small water-points (channels,
home-made dams, wells) and with basic tools, or "modern"-style on irrigated plots.  Fruit trees are
planted mainly on allotments and around villages.  Average fruit and vegetable consumption isestimated at 28 kg. per capita per annum.
27. Fruit and vegetable exports are extremely variable, although they have increased greatly since
1994.  The chief products exported are mangoes and green beans.  This production is intended for the05101520253035
1985 86 87 88 89 90 91 92 93 94 95 96 1997Chart IV.1
Trend of sugar production, 1985-97
Thousands of tonnes
Source:    Malian authorities.WT/TPR/S/43 Trade Policies Review
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coastal countries (Senegal, Côte d'Ivoire) and European Union countries.  Marketing, including
exports, is still limited, however, owing to lack of financing, the defects and irregularity of air freight,
difficulties in collecting, transporting and storing products, failure to stagger production and
deficiencies in seed procurement.
28. The average of import duties is 30.5 per cent for vegetables and 33.9 per cent for fruit compared
with 30.8 per cent for preparations of these products.
(f) Livestock production
29. Mali is a traditionally livestock-producing country.  Its herd population composed of several
species, in particular cattle, sheep, goats and poultry, is one of the largest in West Africa (Table IV.2).
Livestock production accounts for 11 per cent of GDP; it is also a significant source of export
earnings.
30. Livestock development programmes have been centred on animal health, water supplies for
grazing, training of stock farmers and the organization of livestock markets.  However, livestock
exploitation and marketing are poorly organized and production intensification remains limited.
Livestock-raising products (meat, skins, hides and milk) are also inadequately exploited.
31. In order to promote livestock exports, all export duties and taxes have been abolished and
export procedures simplified:  a provisional Certificate of Intention to Export is issued at veterinary
posts and replaces a customs declaration (Chapter III(3)(iii)).  However, the export of young cattle is
forbidden.3
32. Devaluation led to increased sales of animals on the hoof for 1994 but these exports have
marked time since 1995.  They amounted to 417,000 cattle in 1996 compared with 220,000 in 1993.
Through its import-substitution effect, devaluation has led to increased demand for Malian beef in the
subregion countries which are members of the franc zone.  The resulting price rise has not beensufficiently strong, however, to offset the improved competitiveness generated by the change in
parity.
4  Performance in this sector has also been promoted by "mad cow" disease, which has been
discovered in foreign herds.
33. Stockraising methods (transhumance, pastoral nomadism) make milk production difficult to
estimate.  In addition, dairies do not supply precise data.  Milk production in 1995 was estimated at182,000 litres while potential production was 365,000 litres.  Lack of infrastructure impedes milk
marketing; imported powdered milk accounts for 75 per cent of that used in the main processing units
(Mali-Lait, Ségou-Lait, Harry Délices and GAM).
5
34. Hides and skins are likewise an important by- product of livestock production.  Their trade is
regulated.6 Pursuit of the occupation of hide and skin collector is subject to authorization from the
Malian Livestock and Meat Office (OMBEVI).  Hides and skins are subject to health control by the
State veterinary services.  Installations and materials used must be approved by OMBEVI, and the
constitution of homogeneous sales or "assortments" is  required for exports.  Over 60 per cent of skins
are exported in the untreated state. Mali possesses two tanneries7 which work below their production
                                                     
     3Article 43:  "The export of male bovine animals under five years old and non-sterile females under ten years
old is prohibited, unless authorized by the Minister for Livestock Production."
     4Degbelo (1994) for further details on such effects in the context of the developing countries.
     5CEFTE (1997a).
     6Decree 95-416/P-RM regulating trade in hides and skins.
     7The TAMALI and TAO companies.Mali WT/TPR/S/43
Page 53
capacity.  The chief difficulty in this sector is  collecting the skins, owing to the dispersal of
slaughterhouses and the poor condition of the skins.  In 1996 the authorities instituted a tax on hides
and skins8 in order to encourage local processing.  As a result of lobbying by exporters of untreated
skins, the National Assembly abolished the tax in 1997.9  However, these exports are still subject to a
special export licence (Chapter III.3(iii)).
35. Average import duties range from 21.4 per cent on dairy products and eggs to 35 per cent on
meat, skins, hides and other animal products; animal feed is subject to average duties of 35 per cent and
leather articles 33.8 per cent (Table AIV.1).
(g) Fisheries
36. Fresh-water fisheries contributed 1 per cent of GDP in 1997 and the number of fishermen is
estimated at 70,000.  Production varies greatly with rainfall.  Recorded catches in 1996 were around120,000 tonnes.  After falling as a result of the droughts, exports rose again under the joint effect of
the devaluation of the CFA franc and the return of the floods.  Because of lack of infrastructure,
nearly all exported fish is smoked or dried.
37. Fishing is subject to the purchase of a licen ce, the price of which varies between CFAF 1,500
and 15,000 per fisherman per year according to fishing method.
10  A tax of CFAF 7.5/kg. (in 1995) is
levied on fish sales.  The revenue from this tax is shared between the State and the Mopti Fishing
Operation.
38. Import duties are 35 per cent on fish and crustaceans, with an average of 33.9 per cent on
preparations of these products.
(h) Forestry
39. The forestry share in GDP was 5.5 per cent in 1997.  Malian forests supply 90 per cent of the
country's energy needs in the form of fuel w ood used for cooking food.  Firewood, charcoal and
residues constitute the traditional energy most used in Mali.  Firewood consumption has shown an
average annual increase of 1.6 per cent over the past  ten years; charcoal, a growth of 4.1 per cent per
annum.  Between 1990 and 1996 prices rose on average by 3.8 per cent per annum for wood and
12 per cent for charcoal.
40. The area cleared every year is estimated at over 100,000 hectares.  On present estimates, if
current trends are maintained and palliative measures are not taken (reafforestation, substitute
energies), the satisfaction of demand will lead to exhaustion of the forest potential in 60 years.
Annual logging quotas per rural structure and per stand are fixed by ad hoc commissions.11
41. Average import duties are: 17.5 per cent on plants and flowers; 15 per cent on gums, resins and
essences; 25.1 per cent on wood and wood products; and 10 per cent on wood pulp.
                                                     
     8Order 96-0001/MFC-SG fixing the tariff for export duties and taxes on untreated skins.
     9Order 97-055/1/MFC-SG repealing Order 96-0001/MFC-SG fixing the tariff for export duties and taxes on
untreated skins.     
10Decree 95-182/P-RM laying down the levels of fees levied for the issue of fishing licences.
     11Law 95-003 organizing the logging, transport and marketing of wood, Article 10.WT/TPR/S/43 Trade Policies Review
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(3) MINING AND ENERGY SECTORS
(i) Mines
42. Interest in the mining sector dates back to the droughts of the 1970s which revealed the limits
of an economy based essentially on agriculture.  In recent years, the mining sector has been regarded
as one of the main hubs of the country's growth.  As a result of the discovery of new gold deposits and
hints of diamond deposits and the improvement in competitiveness caused by devaluation, this sectoris attracting an increasing number of foreign investors.  Only gold, phosphates and certain
construction materials are currently exploited on an industrial scale in Mali.  Phosphate production
was 4,000 tonnes in 1995 but this product is currently experiencing marketing difficulties.  Cement
production is 3,000 tonnes a year, lime production is 580 tonnes and marble production is 850 tonnes.
Annual non-industrial production of gold from 258 Malian gold-washing sites is estimated at3 tonnes; the number of jobs is believed to be 100,000.  Industrial gold production amounted to
3.04 tonnes in 1993, 2.88 tonnes in 1994, 2.54 tonnes in 1995, 5.65 tonnes in 1996, and 16.32 tonnes
in 1997.
43. The adoption in September 1991 of a new mining code helped to revitalize activities in the
sector.  The mining code provides for tax and customs advantages (Chapter II(4)iii)).  However, theState reserves the right to take a holding of up to 20 per cent (including a free share,  the rate of which
is set at 10 per cent minimum) in the capital of mining enterprises.  Mining activities are subject to the
issue of a permit whose nature varies with the type of operation.  Examples of these permits are the
survey  licence, prospecting licence, exploration permit, gold washer's card, quarry-opening licence
and the exploitation licence and permit; all these permits, etc. are accompanied by an establishment
convention signed by the Minister for Mines and defining the conditions of operation.  The survey
licence is granted by the National Director of Geology and Mines for a non-renewable period notexceeding 90 days.  The prospecting licence is granted by the Minister for Mines to an applicant for
an exploitation licence for a non-renewable period of two years.  The exploration  permit is granted by
Order of the Minister for Mines at his discretion for a three-year period renewable twice for the same
period each time;  the area covered by the permit is reduced by half at the end of the second year of
the first period of validity, and by half again of the area remaining at each renewal.  The gold washer'scard is issued by the National Director for Geology and Mines to Malian nationals and to foreigners
whose countries grant reciprocity to Malian citizens; the card confers the right to carry out
exploitation by non-industrial methods over the whole of Malian territory during its period of validity,
which is one year.
44. The quarrying licence is issued, depending on the case, by the Minister for Mines, the
National Director of Geology and Mines or the administrative authority of the region where the quarry
is situated; the duration of the licence is two years renewable.  The exploitation licence is granted by
the President of the Government to natural or legal persons coming under Malian law who wish to
operate a small mine and who have produced evidence, through exploration work regularly pursued
and monitored by the National Directorate of Geology and Mines (DNGM), of the existence of acommercially exploitable deposit; except by derogation of the President, the validity of an
exploitation licence may not exceed ten years (including renewal).  The exploitation permit is granted
by the President to the holder of an explor ation permit who has provided evidence, through
exploration  work regularly pursued and monitored by the DNGM, of the existence of a commercially
exploitable deposit; except by derogation of the President, exploitation may not exceed a period of
30 years (including renewal).
12
                                                     
        12See Ordinance No. 91-065/CTSP of 24 July 1991 for further details about mining permits.Mali WT/TPR/S/43
Page 55
45. The number of mining permits issued rose from 16 in 1992 to 86 in 1997.  Three of these
permits are for the exploitation of mineral water but most of the others concern gold mining.  Two
gold deposits are currently being worked:  the Syama deposit, which has an annual production of 4 to
6 tonnes and a potential of 100 tonnes of gold, and the Sadiola deposit, which produces an annual
quantity of 9 to 13 tonnes of gold and possesses a potential of 140 tonnes.  Four other deposits are
awaiting exploitation:  their reserves are estimate d at 290 tonnes of gold.  The capital of the two
operating companies, the Syama Mining Company (SOMISY) and the Sadiola Gold Mine
Exploitation Company (SEMOS), is held partly by the Malian State (20 per cent and 18 per cent
respectively) and partly by multinational companies.
46. New legislation designed to regulate the trade in non-industrially produced gold is being
introduced for statistical and fiscal purposes:  under Decree 96-240 and Order 97-1578, it will  bepossible to sell and export gold only through purchase and export branches included in the
commercial register.
47. Exports of precious substances in the untreated state such as gold and diamonds are
prohibited.  According to the authorities, this measure is designed to limit costs, which are pointlessly
increased by the transport of waste.  Mining resources are subject to an ad valorem  tax of 3 per cent of
the pithead value.  Exports of precious substances, including gold, are also subject to the service
provision contribution (CPS) amounting to 3 per cent of the f.o.b. value.  The tax revenue obtained in
1996 from the production of two gold mines amounted to CFAF 5.8 billion.
48. In the short term, the mining programme provides for the benefication of construction materials,
in particular by establishing a marble works and a cement and lime production unit, the benefication  of
bauxite and the setting up of a mini-steel works.  The programme also covers the promotion of export
products and provides for the working of the four gold deposits and prospecting work for numeroussubstances:  platinum, silver, lithium, fluor, tin, barytine, copper, lead and zinc.  Revision of the mining
code is also planned in order to make the sector more attractive to private investment inter alia  by
reducing production costs;  and greater attention will be given in the code to environmental issues.
49. It is planned to begin working deposits of building materials in order to revive and develop
production of cement, lime, marble, gypsum, kaolin and clay (among others), which have high valueadded.  The training side of the mining programme could help the development of small mines.  The
ultimate aim of the programme is to increase the mining sector's contribution to the improvement of
the trade balance.
50. Average import duties range from 16 per cent on lead and lead articles to 35 per cent on ores,
slag, ash, pearls, gemstones, precious metals, jewels and currency (Table AIV.1).
(ii) Energy
51. In 1996 the value added of the energy sector represented 4.8 per cent of GDP and was broken
down as follows:  56 per cent for hydrocarbons, 17 per cent for electricity and 27 per cent for wood.
Final energy consumption amounted to 1.8 million tonnes-oil-equivalent corresponding to a
consumption of 200 kg.-oil-equivalent per capita per annum.  Investment in the sector came toCFAF 147 billion, 98 per cent of which was from external funds.  The share of this investment
devoted to traditional energy, which accounts for 91 per cent of total energy consumption, is 11 per
cent, and that devoted to conventional energy 89 per cent, of which 88 per cent is for the electricity
sector.  The number of employees in this sector is about 3,000.  Monitoring and management of the
sector are carried out by the Ministries for Mines, Energy and Rural Development and theirWT/TPR/S/43 Trade Policies Review
Page 56
departments, private bodies like Mali Energy (EDM), industrial and oil companies and para-public
bodies (research centres, grouping of oil product importers).
52. The main thrust of the master energy plan for Mali is as follows:  to encourage optimum use
of local energy resources; promote the improved use of energy in all its forms by improving the
effectiveness of supply and consumption systems in a long-term context; improve access to modern
types of energy for the population in general and, in particular, for the most deprived sections;liberalize the sector by making greater use of private initiatives and capital; adapt institutions to the
requirements of the energy sector by supplying the sector with suitable material and financial
personnel and resources.
53. Fuels are subject to average import duties of 16.8 per cent compared with 30 per cent for
electricity.
(a) Hydrocarbons
54. Hydrocarbons supply 10 per cent of total energy consumption.  Petroleum products are
consumed mainly in transport.  The quantity of hydrocarbons consumed at present (334,000 tonnes) is
imported.  Between 1987 and 1996 hydrocarbon imports increased on average by 15 per cent per
annum.  The oil shocks of the years 1970-80 stimulated oil-exploration activities because of theexistence of large sedimentary basins on Malian territory.  However, no deposit has yet been
discovered.  The absence of exploitable oil deposits and the great expense of importing oil (14 per
cent of total goods imports) make hydrocarbon management a priority for the energy sector.
55. Mali possesses four main depots with a total capacity of 28,220m
3, two of which are at
Bamako (20,240m3), one at Kayes (7,200m3) and one at Timbuctoo (780m3).  The private sector is
getting progressively involved in operations through the setting up of oil companies for hydrocarbon
distribution.
56. A ministerial Order fixes a bracket within which the prices of these products may vary.  This
bracket is defined in a protocol of agreement with the petroleum operator groupings.  The profit
margins of the distributors vary from 10 to 15 per cent of the cost price.  The bracket also takes
account of the different duties and taxes applying to petroleum products, most of which are classified
in Category II (5 per cent customs duty, 10 per cent fiscal import duty, 3 per cent service provisioncontribution and a variable-rate ISCP - see Table III .2),  and transport costs which are extremely high
because of the country's landlocked situation.  Devaluation of the CFA franc caused a rise of about
30 per cent in petroleum product prices.  At the end of 1997, the price of a litre of diesel fuel was
CFAF 225, a fairly high price compared with thos e prevailing on the markets of the other WAEMU
countries.
57. The magnitude of  fraud in connection with petroleum products has caused the Government of
Mali to ask the SGS to carry out specific monitoring of hydrocarbon movements under the
implementation of the Import Verification Programme (see Chapter III.2(vi)).  The security label affixed
to the copy of the bond-note during transport operations must be produced on demand; the purpose of
monitoring these operations is to reduce the fraudulent release of petroleum products onto the Malianmarket.
(b) Electricity and renewable energies
58. Table IV.3 gives figures for electricity capacity and production and for the electricity-
distribution networks operated by Mali Energy (EDM), as well as for electricity consumption.
Electricity production in 1995 amounted to 374 GWh of which 313 GWh, i.e. 84 per cent, wasMali WT/TPR/S/43
Page 57
produced by EDM, and 61 GWh (16 per cent) by industrial producers for their own use; of this,
32 GWh was produced by mining units.  The average annual production increase in recent years has
been 6.7 per cent.  EDM, of whose capital only 2 per cent is held by private parties, has the monopoly
on electricity marketing.  Apart from industries w ith their own sources of supply, EDM also has the
monopoly on water production and distribution.13  Mali's electrical-energy production capacity is
composed of 38 generating stations, 17 of which belong to the EDM, namely three hydroelectricpower stations (Selingué, Sotuba and Felou) and 14 conventional power stations scattered throughout
the territory.  The branches of industry producing their own electricity  are equipped with
conventional power stations; 47 per cent of the installed power of these autonomous stations is used
by mining companies (Diamou, Syama, Sadiola and Tilemsi).  The  towns of Zégoua and Kadiolo are
connected to the Côte d'Ivoire network.
Tableau IV.3
Statistics on electrical energy
Headings Unit 1994 1995 1996 Growth
Total installed power
of which: - interconnected network
- individual centresMW
MWMW84.8
71.813.084.8
71.813.090.1
75.414.76.3 %
5.0 %
13.3 %
Transport network- 150 kv lines (228 mm2)- 66 kv lines (140.6 mm2)- 30 kv lines- hv/mv kv stations (number)                          total installed power- 30/15 kv stations (number)                          total installed powerKM
KMKM
MVAMVA351.0
68.5
195.4
6
170.0
5
53.0351.0
68.5
195.4
6
170.0
5
53.0351.0
68.5
195.4
6
170.0
5
53.00.0 %
0.0 %0.0 %0.0 %0.0 %0.0 %0.0 %
Distribution network- 15 kv lines- mixed mv/lv lines- lv lines- mv/lv kv stations (number)                          total installed powerKM
KMKM
MVA366.6
793.6
497
123,375370.5
804.2
518
165,906437.0
860.5
686
183,3218.0 %
7.0 %
32.4 %10.5 %
Total energy productionof which: - hydroelectric
- conventionalMWH
MWHMWH276,090
220,105
55,985312,734
228,386
84,347336,028
215,735120,2937.4 %
- 5.5 %
42.6 %
Total energy consumptionof which: - medium voltage              - low voltageMWH
MWHMWH209,823
101,544108,279242,549
122,295120,254265,326
131,417133,9099.4 %
7.5 %
11.4 %
Annual consumption per subscriber- medium voltage- low voltageKWH
KWH228,188
1,810258,552
1,830259,718
1,9540.5 %
6.7 %
Total number of subscribersof which: - interconnected network
- individual centres60,259
48,63611,62366,174
51,59714,57769,345
54,64614,6994.8 %
5.9 %0.8 %
HV High voltage
MV Medium voltage
LV Low voltage
kv kilovolt
Source: Mali Energy.
59. In 1995 the consumption of electricity reserved for urban and industrial use was 303 GWh, of
which 242 GWh was supplied by EDM (80 per cent).  The bulk of medium-voltage electricity is
consumed by industry (78 per cent), low-voltage electricity being almost entirely consumed by
households (88 per cent).  The current EDM charges are those laid down in an Interministerial Order
of 1 April 1998 which replaced Interministerial Order 94/1089 of March 1994 (Table IV.4): every
five years, EDM performs an analysis to see whether the charges still cover all the costs, and if not it
                                                     
         13The rate of coverage of drinking-water needs is 40 per cent in rural areas and 51 per cent in the towns.WT/TPR/S/43 Trade Policies Review
Page 58
draws up a proposal for the Government.  Charges increased by an average of 2.5 per cent per annum
between 1987 and 1995.  An analysis of electricity charges for the subregion indicates that those for
Mali are generally 5 to 40 per cent lower than those of other countries.  The price of water, which is
set below the average operating cost (CFAF 218 co mpared with CFAF 330 per cubic metre in 1996),
is subsidized through the electricity tariff, which affects  EDM's profits.14
Table IV.4
National electricity charges in force since 1 April 1998
CATEGORIES TARIFFa
LOW VOLTAGE
SOCIAL   (2-wire metre, 3 or 5 A)
Proportional price (FCFA/kWh) 58
Tranche 1:  0-50 kWh 90
Tranche 2:  51-200 kWh 105
Tranche 3:  > 200 kWh
NORMAL (2 > 5 A)
Proportional (FCFA/KWH)
Tranche 1:  0-200 kWh 90
Tranche 2:  > 200 kWh 105
PUBLIC LIGHTING
- First 120 hours of monthly use of subscribed power (CFAF/KWH) 90
- balance (CFAF/KWH)
MEDIUM AND HIGH VOLTAGE
MONOMIAL
(Subscribed power <25kW), CFAF/KWH 81
BINOMIAL (HOURLY)
- Standard annual charge (CFAF/KW subscribed)
-  Proportional price (CFAF/KWH)
-  Peak hours (1800 to 2400)-  Working hours (0600 to 1800)
-  Off-peak hours (00 to 0600)13,890
81
58
36
MONTHLY CHARGE FOR RENTAL AND MAINTENANCE OF MEASURING ANDCONTROL APPLIANCES
- HV metering calculated in LV;
rental plus maintenance:  (CFAF/month) 7,734
maintenance alone:  (CFAF/month) 2,340
- HV metering calculated in HV:
rental plus maintenance:  (CFAF/month) 11,601
maintenance alone:  (CFAF/month) 3,511
ADVANCE OF CONSUMPTION:  (CFAF/KW Subscribed) 9,667
a Charges (electricity prices) are given exclusive of VAT in the table;  VAT on electricity is 10 per cent.
Source: Mali Energy.
60. The Manantali Dam will be brought into service in 2000 under the auspices of the
Organization for Development of the Senegal River (OMVS); over half its total power (i.e. 200 MW)is intended for Mali.  It is currently planned to effect a link-up with Côte d'Ivoire, whose production
costs have been reduced following the exploitation of natural-gas deposits.  Several feasibility studies
have likewise been launched in connection with potential hydro-electric sites (Gouina and Kénié) and
the expansion of the capacity of certain generating stations.  The aim is to increase the level of
national electrification, which is currently 7 per cent.
                                                     
        14Following devaluation, the price of a cubic metre of water rose from CFAF 157.1 to CFAF 194.2 in 1994.Mali WT/TPR/S/43
Page 59
61. Renewable-energy sources are also being utilized.  The commonest equipment in this field
relates to solar energy (312 solar pumps), wind energy (50 non-industrial wind pumps) and biogas (50
biogas digesters).  The high initial outlay for this equipment and maintenance difficu lties are major
obstacles to its  development.  Solar-energy production in 1996 was estimated at 2.2 GWh and supply at
over 10,000 Mtep.  Solar energy is therefore an important outlet.  Research and development work is
being carried out by the National Solar and Renewable Energy Centre (CRESOLER), part of the NationalWater Engineering and Energy Directorate (DNHE).
(4) 
MANUFACTURING SECTOR
62. The manufacturing sector is responsible fo r about 13 per cent of GDP; the manufacturing
production growth rate was 4.5 per cent in 1996.  The informal sector contributes 27 per cent of value
added in the manufacturing sector, in which it ha s 94 per cent of the jobs.  However, increasing
participation by the formal private sector in job creation is noted.  In 1995 the modern manufacturing
sector was composed of 113 enterprises and provided 7,809 permanent jobs.  Most industries are
established in the Bamako region.  The sector contributes less than 5 per cent of the total earnings
from goods exports.  The most important branches of the manufacturing sector are the agri-food
industries (36 per cent of industri al GDP) and the textile industries (36 per cent of industrial GDP),
which carry out, among other things, cotton processi ng, sugar, tobacco and cigarette production, rice
husking, and brewing.  Industrial activity has shown signs of recovery since devaluation; textile
industries which had closed have started up afresh.
63. The manufacturing sector is dependent on the outside world:  over 30 per cent of enterprises
import all their inputs.  Despite the recent tax changes, business taxation is still unbalanced in that a small
section of business (the formal sector) bears most of the tax burden.  A comparison of business
production costs in Mali with those of other WAEMU countries in the run-up to the introduction of theUnion's provisions shows that Mali possesses a number of advantages, namely relatively lower water and
rail transport costs and tax levels (Table IV.5).  The low cost of rail transport compared with road
transport must, however, be viewed against the background of the risks of delay and theft.
Table IV.5
Production costs and competitiveness aspects
MALI Maximum WAEMU Minimum WAEMU
Unit cost WAEMU
classificationUnit cost/country Unit cost/country
Electricity (KWH) 55 5 107,18 37,3
Diesel (litre) 275 5 312 135
Water (m3) 218 1 1,026 218
Road transport (T/km.) 43.6 5 50.1 33.6
Rail transport (T/km.) 26.3 1 52.48 26.3
Wages, unskilled worker (gross) 37,219 2 73,704 36,900
Social security costs 18 4
Employers (%) 20 11.4
BIC level 35 1 45 35
VAT level 15 1 20 15
Source: CNP, CNES, CCIA of Dakar, Environment of Industrial Enterprises of the WAEMU, 1996.WT/TPR/S/43 Trade Policies Review
Page 60
64. Mali possesses substantial industrial-production potential, particularly in the agri-food and
textile fields and in the processing of hides and skins.  The chief obstacles to the development of the
industrial sector are:  the inadequacy of basic infrastructure (roads, energy, telecommunications) and
the high cost of related services; lack of trained manpower; the limited nature of the domestic market
and low purchasing power; the absence of suitable modern technology; climatic hazards which
jeopardize agricultural production (agriculture being one of the main sources of inputs); difficulties inobtaining land for industrial use (saturation of existing industrial zones); and difficulty in obtaining
bank financing.  The medium-term industrial deve lopment strategy (1995-97) is based on the private
sector and particularly SMEs which exploit local resources and is aimed at easing some of these
constraints.  A guarantee mechanism should be introduced in order to facilitate access to bank credit.
(i) Textiles
65. Development of the textile industry represents a priority since only 2 per cent of cotton
production is processed locally at the moment.  In 1995 the textile industry provided 34.5 per cent of
jobs in the modern sector. Two companies (in each of which the State has a 20 per cent holding), the
Mali Textile Industry (ITEMA) in Bamako and the Malian Textile Company (COMATEX) in Ségou,
have 1,890 persons on their payroll and are governed by specific conventions which entitle them toextremely substantial tax concessions in the form of exemption from import duties and taxes on
certain products (including inputs, equipment and spare parts) and exemption from payment of
registration duties.  They produce the same range of goods but satisfy only 25 per cent of domestic
needs.
66. The two companies process Malian cotton only.  The CMDT sells them the cotton at a
preferential price.  In exchange, these companies agree to use less good quality cotton which is more
difficult to process.  The costs of other inputs (chemicals and colourings) imported from Europe areworsened by the high transport costs resulting fr om the country's land-locked situation.  The two
companies would not be competitive in the subregion at the moment if they had to buy their cotton at
international prices.
67. Mali's textile industries export printed fabric to the other WAEMU countries, particularly
Burkina Faso and Côte d'Ivoire, as well as to Gabon.  ITEMA exports between 12 and 17 per cent ofits output; its cloth is WAEMU-approved.  Th ese two enterprises have expansion programmes
designed to increase the production of yarn for export.   ITEMA is benefiting from the relocation of a
spinning mill from Naples which produces unbleached yarn; the mill is leaving Italy because it is
excessively polluting and does not comply with European standards. The yarn produced will be
intended exclusively for export to Europe.
68. The chief difficulty facing textile enterprises in Mali is competition from fraudulent imports and
from imports originating in South East Asia.  Average import duties on textiles amount to 28.7  per cent
compared with 33.9 per cent on clothing.
(ii) Other products
69. Two tannery enterprises (TAO and TAMALI) treat cattle, sheep and goat skins before
exporting them to Europe.  Development of this activity, which is dependent on improvements in
product quality throughout the sector, would enable economic use to be made of these animal-
production by-products.
70. The other manufacturing activities (metal and cardboard industries, and certain chemical
industries) are in the main designed to meet the demands of the local market.  In principle, they are highly
protected by the tariff system: a low import duty on their inputs (5 per cent) and high import duties onMali WT/TPR/S/43
Page 61
their finished product (35 per cent) should give the sector a high effective degree of protection.  However,
these goods in fact suffer from strong competition from similar products fraudulently imported, i.e.
without paying all or part of the import duties and indirect domestic taxes, particularly VAT.
(5) SERVICES
71. Transport, financial services, tourism (including the hotel trade and catering) and
telecommunications are the main branches of the serv ice sector in Mali.  Mali is traditionally a net
importer of services, particularly freight and insuranc e (Chapter I.3(ii)).  Owing to the extent of its
territory and its land-locked situation, the development of communication services, including
telecommunications, and of transport in Mali is essential.  The inadequacy of the transport
infrastructure is one of the factors that limit the marketing, including export, of products, particularly
agricultural products, and the international competitiveness of Malian goods, especially manufacturedgoods.  The high costs of telecommunications and financial services are other factors which affect not
only the competitiveness of goods but also the development of services such as tourism.
72. Under the General Agreement on Trade in Services resulting from the Uruguay Round, Mali has
bound, without limitation, the supply of adult education services in the handicraft sector; hotel and
catering services have also been bound, with the exception of transfrontier supply (not bound because oftechnical impracticability).
15  Mali has obtained exemptions from MFN treatment (Article II of the
GATS) in the maritime-transport field, namely: cabotage rights granted, on a basis of reciprocity, to
trading partners under agreements; sharing of 80 per cent of liner trade with the national shipping
company of the state situated at the other end of a particular traffic (implementation of the UNCTAD
Code of Conduct for Liner Conferences); and sharing of all cargoes (in bulk and specialized) between
State shipping companies situated at the two ends of a particular traffic, in accordance with provisions
laid down in agreements.16 Transport activities accounted for about 3 per cent of GDP in 1997;  they have
been growing by 4 per cent per annum since 1993.
(i) Transport services
73. Transport services, primarily by land and air, contribute about 4 per cent of GDP.  Mali ships
goods by sea principally through the ports of Abidjan, Dakar and Lomé (Table IV.6).  Transport
services are subject to VAT at a rate of 10 per cent or 15 per cent, as the case may be, and the 5 percent CPS.  In addition to the BIC to which these service providers are liable, transport services are
also subject to various taxes and charges, including the trader's tax (patente) of CFAF 21,000 to
52,000, vehicle road tax (CFAF 7,000 to 75,000), ro ad transport tax (CFAF 88,000 to 414,000) and
other administrative duties and taxes.
(a) Inland transport74. The road network is 50,000 km. long.  It consists of only 5 per cent asphalt roads, 3 per cent
modern earth roads, 13 per cent upgraded tracks and 78 per cent seasonal tracks, which are in a
generally poor condition.  About 1.06 billion tonnes-kilometre and 2.27 billion travellers-kilometre
were carried by this network in 1995.
                                                     
        15WTO document GATS/SC/53, 30 August 1995.
        16WTO document GATS/EL/53, 30 August 1995.WT/TPR/S/43 Trade Policies Review
Page 62
Table IV.6
Goods transported (all means of transport), 1993-97
(tonnes)
Corridors 1993 1994 1995 1996 1997
Abidjan 573,534 695,033 634,063 938,737 1,113,883
Dakar 311,085 344,274 404,747 422,555 44,576
Lomé 4,531 6,564 3,340 9,217 8,768
Other 24,596 13,596 22,060 19,893 26,787
Total 913,746 1,059,467 1,064,210 1,390,402 1,194,014
Source: Malian authorities.
75. A transport card is required in order to operate in the inland-transport sector.  In 1994 the
price of this card came to CFAF 2,000 for a 5-seater vehicle and CFAF 8,000 for a bus with more
than 30 seats.  In 1995 the Transport Directorate issued 6,822 transport cards (2,710 for the carriage
of passengers, 2,609 for goods and 1,503 for articulated tractors).  All commercial road transportvehicles carrying passengers or goods which use a trunk and/or international road are liable to a
road-use duty.
17  This duty, which is set at CFAF 190 to 1,175 per 100  km. of transport (depending
on the road category and type of transport, with a minimum of CFAF 250, goes to the Road Use Duty
Fund, the Fund for the Equipment of Intercity and In ternational Road Hauliers and the Security Fund
for the Equipment of, and Granting of Allowances to, Agents of the Security Forces Responsible forRoad Control.
18
76. Road transport is dominated by trade unions, which have set up a rotation system which
prevents customers from choosing their hauliers for themselves.  Transport costs per kilometre are
comparable with those of other countries in the subregion even though fuel is very expensive in Mali.
However, total costs are still higher for Mali owing to the country's landlocked situation.
Performance in the road-haulage sector is poor; a Malian carrier takes an average of ten days to do the
Bamako-Abidjan round trip, which would take only four days if administrative "hassles" were lessnumerous and if the rolling stock were in a better state.
77. The rail network is composed of a single railway 729 km. long between Koulikoro and the
Senegalese frontier.  The density of the network is still low (0.59 km./1,000 km.
2).19  The network is
managed and operated jointly by Mali Railways (R CFM) and Senegal Railways (RCFS).  In 1995 this
network carried 254 million tonnes-kilometre and 254 million travellers-kilometre.  Traffic has notincreased in the past five years.
(b) Air transport
78. Mali has an international airport at Bamako-Sénou, about ten minor airports and
40 airfields.
20  All these airports are managed by Mali  Airports (ADM), a wholly State-owned
company.  Air-transport operations are open to any operator.  However, authorization from theMinister for Transport is needed to set up an airline company.  The application for authorization must
include the company's articles of association, a feasibility study and a guarantee of the applicant's
financial and technical standing.  Traffic rights are allocated on the basis of bilateral agreements
signed between Mali and other countries;  the airl ine company of each State that is a party to an
agreement with Mali is informed  of the agreed frequency.  In 1995 Mali recorded 7,500 aircraft
movements of which 5,085 related to the Bamako-Sénou airport.
                                                     
     17Law 96-018 establishing the road use duty.
     18Law 96-019 establishing the road use duty funds.
     19Average railway density in Africa is 2.7 km/1000 km2.
     20Europa (1997).Mali WT/TPR/S/43
Page 63
79. In 1993 Mali acceded to the Treaty of Yaoundé setting up the multinational company
Air Afrique, which is responsible for operating part of the international airlines.  As in most member
countries, air transport is organized in duopolies between Air Afrique and the foreign companies of the
countries served.  Since 1995 the Malian Government has authorized charter flights for passenger
transport and for freight (exports of local products).  National traffic is in the hands of Air Mali, a mixed-
investment company, and some 12 small private companies (air taxis).  The capacity of each air taxi islimited to 10 seats or 1 tonne of freight
80. Companies are free to set their own rates.  Inte rnational rates are set in accordance with the
provisions of the International Air Transport Agreement of which Mali is a member.  However, owing
to the small number of companies serving the country, freight prices are high and place a strain on
Malian exports; a tax of CFAF 15 per kg. is levied on freight by the Mali Airports Company.  Forcommercial flights, according to the category of aircraft the handling price per aircraft ranges from
US$432 to US$6,445, depending on capacity for passenger aircraft;  US$7,150 to US$10,500 for
cargo aircraft;  and US$3,360 and US$5,615 for combined aircraft.  For non-commercial flights, the
price ranges from US$216 to US$2,286, according to the category.  Landing fees at Bamako airport
run from CFAF 2,630 to 10,933, depending on aircraft capacity.
 21  International air transport of goods
or passengers is exempt from the TPS.
81. Mali is also a member of the Internationa l Civil Aviation Organization (ICAO), the Agency
for Air Navigation Safety in Africa (ASECNA) and of the African Civil Aviation Commission
(ACAC).
(b) River and maritime transport
82. The waterway network is 2,334 km. long but is badly maintained.  The Niger river is only
navigable for five to six months a year.  The contract plan signed between the State and the MalianNavigation Company (COMANAV) (Chapter III(4)(i)) for the period 1996-99 sets three objectives: to
contribute to the breaking down of the country's isolation, optimize the operating conditions of
COMANAV and improve its performance indicators.
83. Mali has no coast line or sea-going fleet.  However, the country possesses warehouses in five
African ports.
22  These warehouses were set up following maritime transport and transit agreements
concluded between the Malian State and transit countries.  The staff of these warehouses provide external
services for the transport authorities by facilitating operations relating to the transit of Malian goods and
the collection of statistics.  They locate goods (identification, nature, weight, origin, destination); they
monitor the services provided by the various intertrade groupings with respect to the goods;  they collect,
process and distribute statistics concerning the transport and transit of Malian goods; and they provideassistance to Malian operators in the event of penalties and/or disputes with intertrade groupings.  These
services are invoiced at CFAF 500 a tonne.
23  The storage of Malian goods in these warehouses is also
subject to payment after an exempt period of 20 days.24
                                                     
     21The minimum charge is CFAF 7,888 for aircraft of 25 tonnes for which the fee is CFAF 2,630.
     22Senegal, Côte d'Ivoire, Togo, Mauritania and Guinea.
     23Decree 93-451/PM-RM fixing the level of remuneration for services connected with Mali warehouses in
ports.     
24Examples of prices in 1993: CFAF 40 per tonne per day for exports; CFAF 80 per tonne per day for all
imported products other than cereals, flour, fertilizer, food donations and vehicles.WT/TPR/S/43 Trade Policies Review
Page 64
(ii) Financial services
(a) Banking services
84. The Malian banking system is composed of the Central Bank of West African States
(BCEAO), which issues currency for all WAEMU member countries, and of seven banks (operating
in Mali in 1996):  the Mali Development Bank (BDM-SA), the International Bank for Mali (BIM-
SA), the Malian Credit and Deposit Bank (BMCD), the National Agricultural Development Bank(BNDA), the Bank of Africa-Mali (BOA-Mali), the Sahel Commercial Bank (BCS-SA) and the Mali
Housing Bank (BHM-SA).
25  The Malian State holds all the capital of the BMCD and has shares in
the capital of the other banks at different levels, with the exception of the Bank of Africa, which is
wholly private.
85. Banking activity is subject to the approval of the Minister of Finance, with the consent of the
WAEMU Banking Commission26;  a minimum capital of CFAF 1 billion is required.  Under current
legislation, only citizens of a WAEMU member country may administer or manage a bank, a financial
institution or one of their branches, unless an establishment convention exists.  Banks established in
Mali must obtain the authorization of the Minister of Finance before taking out loans or investing
outside the WAEMU.
86. Traditional banks are very thin on the ground in Mali and their structures and the services
they provide are ill-adapted to the needs of customers as a whole.  The size of the subsistence
economy and of the informal sector has encouraged the development of tontines.  Tontines are based
on trust between their members;  the sums involved remain small and their ultimate use ranges from
equipment to investment in small-scale activities.  Mali also has a properly registered financial
institution27, the Crédit Initiative, 15 per cent of whose capital is held by the State.
87. Apart from the ordinary taxes, banking services are liable to 15 per cent TPS on interest and
9 per cent income tax on debts and deposits.
(b) Insurance services
88. In 1995 five insurance companies were operating on the Malian insurance market.  Two of
these companies, AGF and Colina-SA, are agencies of foreign companies.  The National Insurance
and Re-Insurance Fund (CNAR),  SABUNYUMAN and LAFIA are companies coming under national
law.  The CNAR is the only State-owned compan y and at the end of 1997 was in the process of
privatization.
89. From 1990 to 1995 the turnover of insurance companies was increasing annually by an
average of 20 per cent;  they employed 282 persons in 1996 and accounted for 0.2 per cent of GDP in
1995.  Insurance companies are subject to the industrial and commercial profits tax;  a tax is alsolevied on insurance contracts.  This tax is 4 per cent for all-risk insurance contracts in respect of
                                                     
25The Postal Cheque and Savings Account Company (SCPE) has become the BHM, whose activities now
cover housing loans.
26The Commission also monitors banks and financial institutions at WAEMU level.
27Law 19-74/AM-RM regulating banking operations in Mali states: "Financial institutions shall be taken
to mean natural or legal persons other than banks who state that they habitually carry out credit, credit sale orexchange transactions on their own behalf or who habitually receive funds which they use on their own behalf ininvestment transactions or who habitually act as interm ediaries in the capacity of commercial agents, brokers or
other capacities for all or part of those transactions" (Article IV).Mali WT/TPR/S/43
Page 65
maritime, river and air navigation;  it is 20 per cent for other insurance contracts (theft, fire, civil
liability, motor vehicles).
90. Mali has signed the Treaty Establishing an Intra-African Insurance Market Conference Code
(CIMA Code), which came into force on 15 Februa ry 1995.  The code governs insurance services in
the 14  African countries of the franc zone.  Only approved companies established under domestic law
(whatever the origin of the capital) are authorized to operate in Mali.28  Approval is granted by the
Minister of Finance after consultation with the Regional Insurance Control Commission whose
headquarters are in Libreville.  The code requires that life and non-life (fire, accident, technical risks
and miscellaneous) insurance activities be separated.  All enterprises currently present in Mali provide
non-life insurance benefits.  Only the CNAR and th e LAFIA enterprise also provide life-insurance
benefits.  These two companies transferred their life-insurance activities (including their portfolios) tothe newly-established SONA-vie, of which they are shareholders.
91. Insurance premiums are set freely in Mali.  However, the CIMA Code urges each country to
set ceiling and floor rates for motor vehicles, which are established by the Insurance Company
Committee in Mali.  Apart from ordinary taxes, insurance services are subject to a tax on insurance
policies of 4 per cent for transport risks and 20 per cent for other risks.  They are not subject to TPSon insurance premiums.
(iii) Tourism, hotel and restaurant services
92. Mali has numerous tourist attractions,  which  currently are not  being exploited.  Mali has
two national parks and a nature reserve where wild animals can be observed.  Numerous regions are
of historical and architectural interest, e.g.  the Dogon country and the towns of Ségou,  Djenné and
Timbuctoo.  Some of these sites appear on UNESC O's world heritage list.  Between 1993 and 1997
the number of international visitors to the country more than doubled (Table IV.7).
93. In 1997 there were in Mali two four-star hotels in Bamako, one three-star hotel in Bamako
and one in Mopti, and 104 two-or one-star hotels in all the country including Bamako.  Between 1995
and 1997 the number of hotels rose from 76 to 106, or by 39.5 per cent.  The number of rooms rose
from 1,582 to 1,724, the number of beds from 2,070 to 2,275, and the number of person-nights from
102,678 to 175,283.  The Hôtel de l'Amitié (100 per cent State-owned) and the Grand Hotel(privatized) are the two largest hotels in the country, all of them situated in Bamako.  Mali also has 34
travel agencies.  Tourism, (including hotel and re staurant services) directly employed 3,000 persons in
1996.  Tourism is also an income-generating sector for the State; the new tourist tax produced
earnings amounting to CFAF 149 million in 1997.
94. The Malian Tourism and Hotel Office (OMATHO) has been responsible since 1995 for
tourism development policy for Mali and its implementation.  The authorization needed to open an
agency is granted according to professionalism and morality criteria and not nationality.  OMATHO is
financed by the receipts from the tourist tax of CFAF 500 per unit and per person, the passenger tax
on departure from Bamako airport (CFAF 2,500) and State subsidies.
95. Several factors limit the development of tourism.  Mali is an expensive destination compared
with other countries outside the franc zone.  Air-transport costs are very high, as also the cost of
staying in the country
29, although devaluation has reduced this drawback.  Inadequate infrastructure
                                                     
28It will shortly become compulsory for agencies of already established insurance companies to become
companies under Malian law.     
29OMATHO has estimated that the cost of a stay in Mali is between 25 and 40 per cent too expensive
compared with other countries at the same development level.WT/TPR/S/43 Trade Policies Review
Page 66
and transport is also an obstacle to tourism development.   Most tourist spots lie several hundred
kilometres from Bamako, domestic airline services  are poor and many roads are in bad condition.
The development of tourism has also been held back by political turbulence in the north of the
country.
Table IV.7
Tourist arrivals in hotels and assimilated establishments, 1993-97
Country/Nationality 1993 1994 1995 1996 1997
Total 27,661 30,877 42,897 53,893 65,649
Africa 10,121 8,660 12,026 11,451 14,321
North America 5,288 3,961 4,689 5,814 6,841
United States 1,828 2,474 3,537 3,823 4,972
Canada 3,460 1,487 1,152 1,991 1,869
Far East/Japan 123 135 728 1,467 1,621
Europe 8,914 13,763 22,155 31,137 38,278
Russia 76 119 129 348 186
Other Eastern Europe 10 28 15 .. 50
United Kingdom 160 148 438 1,085 1,760
Scandinavia 192 38 224 581 672
Italy 644 406 1,250 2,544 4,236
Spain 430 341 1,027 2,294 2,442
A u s t r i a 4 21 2 92 9 82 7 63 8 6
France 4,287 6,023 8,065 14,851 17,512
Germany 1,869 2,348 1,833 3,392 4,119
Benelux 25 148 7,214 1,623 2,711
Switzerland 1,179 4,035 1,662 4,143 4,204
Middle East 71 33 176 171 321
Other 3,144 4,325 3,123 3763 4,267
Source:  Malian authorities.
(iv) Telecommunications
96. Telecommunication services have been expanding since the early 1990s.  The number of
subscribers increased strongly from 12,837 in 1992 to around 21,300 in 1996 (Table IV.8);  however,
the density of the telephone network (number of telephone lines per 100 inhabitants), which was0.27 in 1997, is greatly inferior to the average for countries in the subregion (1.5).  The authorities
estimate that demand in 1997 exceeded supply by 12 per cent and that future demand will grow at a
rate of around 15 per cent per annum.
Table IV.8
Indicators of telecommunications services
YearNumber of subscribers
=
Number of main lines  (ML)Density
(ML/100 persons)
1992 12,837 0.16
1993 13,812 0.162
1994 15,209 0.168
1995 17,164 0.18
1996 21,294 0.25
1997 96,411 0.27
.. Not available.
Source: Mali Telecommunications Company.Mali WT/TPR/S/43
Page 67
97. The contribution by the telecommunications sector to GDP is 1.35 per cent.  The Mali
Telecommunications Company (SOTELMA), which is 100 per cent-owned by the Malian State, has a
monopoly on telecommunications, with the exception of the Internet, which has four private
providers.  SOTELMA employs 1,357 persons; its productivity (54 employees per 1,000 lines) is
below that for the subregion (30 employees per 1,000 lines).  Telecommunications appliances and
equipment may be freely imported and sold.  The call-back facility is not authorized but is notprohibited by law;  a bill is being prepared in this connection.
98. Telephone charges are among the highest in the subregion (Table IV.9).  Charges are
proposed by SOTELMA and laid down by Order of the Minister of Communications after adoption
by the Council of Ministers.  According to the authorities, modifications in charges (increases or
reductions) proposed by SOTELMA generally keep pace with international trends;  charges are notbased on production costs as SOTELMA does not keep itemized accounts.  Work is in hand to correct
this shortcoming.  Charges for trunk calls vary with distance;  an equalization system is to be
introduced following the current work.  A bill  to reduce trunk call rates was being adopted at the end
of 1997.  International charges are set on the basis of the accounting rate (TR) negotiated with
partners (States) to cover carrying the communication.
30  Calls to the United States are twice as
expensive as calls to France (Table IV.9).  International communications benefit from a rate reduction
of 25 to 50 per cent according to the time of the call.
99. The Government's telecommunications objectives are to meet the population's potential demand
and improve the competitiveness of SOTELMA;  serving all localities with more than 5,000 inhabitants
is among the priorities.  Estimated annual short-term financing needs are assessed at CFAF 26.6 billion
per annum, of which 85 per cent will be financed from outside;  it is planned to privatize SOTELMA.31
Investment would represent 97 per cent of total financing and maintenance 3 per cent.32
Table IV.9
Telephone charges in Mali and the WAEMU countries(CFAF)
Local
(3mn)Trunk
(3 mn)WAEMU
(1 mn)USA
(1 mn)France
(1 mn)
Mali 51 705 716 3,000 1,345
Benin 66 642 481 1,705 1,760
Burkina Faso 30 780 924 1,482 2,262
Côte d'Ivoire 29 535 580 870 1,390
Niger 38 529 600 1,285 1,800
Senegal 50 375 250 800 1,330
Togo 25 583 139 857 1,500
Source: CEFTE (1997b), Regional Support Programme for Integration of the WAEMU countries, WAEMU.
                                                     
30The negotiated charges were set by the formula:  TP = KTR, where TP = tariff charged;
TR = accounting rate;  and K = a multiplier coefficient not exceeding 1.5.     
31La Lettre Afrique Expansion No. 548, 18 May 1998.
      32Government of Mali (1997).WT/TPR/S/43 Trade Policies Review
Page 68
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