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AFRICAN DEVELOPMENT BANK
AFRICAN DEVELOPMENT FUND
MALI: 2015-2019 COUNTRY STRATEGY PAPER MID-TERM REVIEW AND 2018
COUNTRY PORTFOLIO PERFORMANCE REVIEW
Mali Country Office (COML)
May 2019
Director General, RDGW: Marie Laure AKIN-OLUGBADE
Acting Director, ECCE: Ferdinand BAKOUP
Lead Economist, ECCE/RDGW: James Gituro WAHOME
Director, RDTS: Sibry TAPSOBA
Mali Country Manager: Haly Louise DJOUSSOU-LORNG/OURAGA
Review Team
Ameth Saloum NDIAYE, Principal Country Economist (COML, 7220); Nyaki
Zangbula KANINGBI, Principal Operations Officer (COML, 7202); Fatoumata B.
DIALLO, Senior Rural Engineer (COML, 7206); Hammadoun A. DIALL, Senior
Investment Officer (COML, 7204); Minemba TRAORE, Senior Social Development
Specialist (COML, 7211); Mohamed A. DIALLO, Senior Financial Management
Officer (COML, 7207); Pierre Chrysologue OUEDRAOGO, Procurement Officer
(COML, 7228); Cheik Mbaye, Former Consultant Macroeconomist (COML); El Hadji
Amadou M’baye, Principal Water and Sanitation Engineer (COML, 7224)
Peer Reviewers
Marcellin Ndong Ntah, Lead Economist (RDGE, 8398)
Stefan Muller, Lead Country Programme Coordinator (RDGS, 4653)
TABLE OF CONTENTS
CURRENCY EQUIVALENTS ............................................................................................................................... i LIST OF ACRONYMS AND ABBREVIATIONS ................................................................................................. I EXECUTIVE SUMMARY ................................................................................................................................... IV
I. INTRODUCTION ......................................................................................................................................... 1
II. COUNTRY CONTEXT AND PROSPECTS ................................................................................................ 1 II.1 RECENT POLITICAL TREND ..................................................................................................................... 1 II.2 ECONOMIC SITUATION ........................................................................................................................... 1 II.3 SOCIAL CONTEXT ................................................................................................................................... 6 II.4 CROSS-CUTTING THEMES ....................................................................................................................... 7
III. STRATEGIC OPTIONS ............................................................................................................................... 7 III.1 COUNTRY STRATEGIC FRAMEWORK ...................................................................................................... 7 III.2 AID COORDINATION AND HARMONISATION ........................................................................................... 8 III.3 BANK’S POSITIONING IN THE COUNTRY AND COMPARATIVE ADVANTAGE ............................................ 8 III.4 STRENGTHS, OPPORTUNITIES, CHALLENGES AND WEAKNESSES ............................................................ 8
IV. CSP IMPLEMENTATION: RESULTS OBTAINED AT MID-TERM ....................................................... 9 IV.1 ALLOCATION OF BANK GROUP RESOURCES TO MALI ............................................................................ 9 IV.2 MID-TERM IMPLEMENTATION STATUS OF THE OPERATIONS PROGRAMME ............................................ 9 IV.3 RESULTS ACHIEVED BY THE CSP AT MID-TERM .................................................................................. 10
IV.3.1 Pillar 1 – Improvement of Governance for Inclusive Growth ..................................................... 10 IV.3.2 Pillar 2 – Infrastructure Development to Support Economic Recovery ...................................... 10
IV.4 OTHER RESULTS OF THE STRATEGY ..................................................................................................... 11 IV.5 AFDB CONTRIBUTION TO ACHIEVEMENT OF THE HIGH 5S ................................................................... 12 IV.6 IMPLEMENTATION OF THE PARIS DÉCLARATION, AND BUSAN COMMMITMENTS .................................. 12
V. COUNTRY PORTFOLIO PERFORMANCE REVIEW ............................................................................ 12 V.1 BANK GROUP’S ACTIVE PORTFOLIO..................................................................................................... 12 V.2 PORTFOLIO MONITORING AND EVALUATION........................................................................................ 13 V.3 IMPLEMENTATION STATUS OF THE 2016 PPIP ...................................................................................... 13 V.4 PERFORMANCE OF BANK GROUP OPERATIONS IN MALI ....................................................................... 14 V.5 COUNTRY PERFORMANCE OUTCOMES BASED ON THE QUESTIONNAIRE ON PORTFOLIO QUALITY ...... 15 V.6 CONCLUSIONS OF MEETINGS WITH STAKEHOLDERS ............................................................................. 15 V.7 REVISED PPIP ...................................................................................................................................... 16
VI. LESSONS LEARNT AT MID-TERM ........................................................................................................ 16 VI.1 LESSONS FOR THE BANK GROUP .......................................................................................................... 16 VI.2 LESSONS FOR GOVERNMENT ................................................................................................................ 16 VI.3 LESSONS FOR OTHER DEVELOPMENT PARTNERS. ................................................................................ 16
VII. BANK’S STRATEGY FOR THE REMAINING CSP PERIOD ............................................................ 17 VII.1 RELEVANCE OF THE PILLARS OF THE STRATEGY .............................................................................. 17 VII.2 BANK’S ASSISTANCE STRATEGY FOR THE REMAINING CSP PERIOD ................................................ 17 VII.3 INDICATIVE ASSISTANCE PROGRAMME FOR THE REMAINING CSP PERIOD ...................................... 18 VII.4 NON-LENDING ACTIVITIES ............................................................................................................... 18 VII.5 AREAS OF DIALOGUE WITH THE COUNTRY ...................................................................................... 18 VII.6 MONITORING AND EVALUATION OF THE BANK GROUP’S ASSISTANCE ............................................ 18 VII.7 RISKS AND MITIGATION MEASURES ................................................................................................ 18
VIII. CONCLUSION AND RECOMMENDATION ....................................................................................... 19
LIST OF TABLES
Table 1: Key Macroeconomic Indicators, 2015-2020
Table 2: Mali’s Performance in the Doing Business Ranking, 2015-2019
Table 3: Indicators of the Number of Kilometres of Roads in Mali, 2015-2017 (km)
Table 4: Rate of Access to Drinking Water in Mali, 2016-2017 (%)
Table 5: Trend of Energy Sector Indicators in Mali, 2015-2017
Table 6: Trend of the Unemployment Rate in Mali, 2015-2017 (%)
Table 7: Risks and Mitigation Measures
LIST OF FIGURES
Figure 1: Breakdown of Active Portfolio by Sector
Figure 2: Breakdown of Portfolio by High 5
LIST OF BOXES
Box 1: A Presidential Term of Office that Looks Difficult
Box 2: Strengths, Opportunities, Challenges and Weaknesses
LIST OF ANNEXES
Annex 1: Table A.1: Mali’s External Debt Sustainability Indicators, 2018–2038 (%)
Annex 2: Figure A.1: Trend of the Incidence of Poverty in Mali by Place of Residence, 2001-
2017 (%)
Annex 3: Table A.2: Mali’s Classified, Developed and Undeveloped Road Network, 2018
Annex 4: Table A.3: State of the Developed Road Network in Mali
Annex 5: Potential of the Agricultural Sector in Mali
Annex 6: 2018 Diagnosis of Fragility Factors in Mali
Annex 7: 2014 Diagnosis of Fragility Factors in Mali
Annex 8: Table A.4: Interventions of Development Partners in Mali in 2016
Annex 9: Table A.5: Sectors of Intervention of Development Partners in Mali in 2016
Annex 10: Table A.6: Results-Based Framework of Mali’s 2015-2019 CSP
Annex 11: Table A.7: AfDB Overall Portfolio in Mali
Annex 12: Table A.8: 2018 Revised Country Portfolio Performance Improvement Plan
Annex 13: Table A.9: 2019 Operational Indicative Programme
Annex 14: Table A.10: Mali: Key Macro-economic Indicators
Annex 15: Table A.11: Mali: Comparative Socio-economic Indicators
Annex 16: Mali: Country Fiduciary Risk Assessment (CFRA)
i
CURRENCY EQUIVALENTS
December 2018
Currency unit = CFA Franc (XOF)
UA 1 = XOF 801.04
EUR 1 = XOF 655.96
USD 1 = XOF 579.57
LIST OF ACRONYMS AND ABBREVIATIONS
ADF African Development Fund
ADRU Koulikoro Semi-Urban Agropole Development Programme
AFD French Development Agency
AfDB African Development Bank
AfIF African Investment Facility
ANASER National Road Safety Agency
ATI African Trade Insurance Agency
BCEAO Central Bank of West African States
BD Bidding Document
BDM Mali Development Bank
BMS Mali Solidarity Bank
BSIC Sahel-Saharan Bank for Investment and Trade
ANRC African Natural Resources Centre
CFAF Franc of African Financial Cooperation
CIF Climate Investment Funds
CODE Committee on Operations and Development Effectiveness
COML AfDB Country Office in Mali
CPI Corruption Perception Index
CPIA Country Policy and Institutional Assessment
CPPR Country Portfolio Performance Review
CREDD Strategic Framework for Economic Recovery and Sustainable
Development
CSCOM Community Health Centres
CSCRP Growth and Poverty Reduction Strategic Framework
CSP Country Strategy Paper
DDR Disarmament, Demobilisation and Reintegration
DFM Department of Finance and Equipment
DGMP-DSP General Directorate of Public Procurement and Public Service
Delegations
DSA Debt Sustainability Analysis
DWS Drinking Water Supply
ECF Extended Credit Facility
ECOWAS Economic Community of West African States
EIB European Investment Bank
ii
ELIM Light Survey of Household Living Conditions
ESIA Environmental and Social Impact Assessment
ESS Economic and Sectoral Studies
EU European Union
FDI Foreign Direct Investments
FOJEP Youth Forum for Employment and Peace
GDP Gross Domestic Product
GEF Global Environment Facility
HDI Human Development Index
ICT Information and Communication Technology
IFC International Finance Corporation
IMF International Monetary Fund
INSTAT National Institute of Statistics
IsDB Islamic Development Bank
LTS Long-Term Strategy
M3 Moulin Moderne du Mali Project
MDG Millennium Development Goals
MIEC Joint Assessment Mission to Northern Mali
UA Unit of Account
MW Megawatt
OITC AfDB Transport Infrastructure, Urban Development and ICT
Department
OPSD AfDB Private Sector Department
ORS Segou Rice Authority
P2RS Multinational Programme to Strengthen Resilience to Food and
Nutrition Insecurity in the Sahel
PACE-I Economic Growth Support Programme
PADEPA-KS Livestock Development Support Project in Kayes Sud
PAGAM/GFP Government Action Plan for the Improvement and Modernisation of
Public Financial Management
PAGODA Pillar Assessed Grant or Delegation Agreement
PAP Priority Action Plan
PARGE Economic Governance Reform Support Programme
PATAM-EAJ Support Programme for Agriculture Transformation in Mali- Youth
Employment Component
PDA/RN Accelerated Development Programme for Northern Regions
PDIBS Irrigation Development Project in Bani Basins and Selegué
PDIR-PD2 Integrated Development and Climate Resilience of Populations in the
Delta 2 Plains
PEFA Public Expenditure and Financial Accountability
PEMFAR Public Expenditure Management and Financial Accountability Review
PMU Project Management Unit
PPIA Public Policy and Institutional Assessment
iii
PPIP Portfolio Performance Improvement Plan
PPP Public-Private Partnership
PRED Plan for Sustainable Recovery
PREM Reform Plan for Public Financial Management in Mali
PRESA-DCI Project to Strengthen Food Security through the Development of
Irrigated Crops
PRESAN-KL Project to Strengthen Food and Nutrition Security in the Koulikoro
Region
PRODEC Ten-Year Education Development Programme
PRODEFPE Ten-Year Programme for the Development of Vocational Training for
Employment
PRODESS Socio-Health Development Programme
PROSEA Drinking Water and Sanitation Sector Programme
RGPH General Population and Housing Census
RGUE General Census of Economic Units
RISP Regional Integration Strategy Paper
SAGT Transition Management Support Strategy
SCAP Common Country Support Strategy
SDAB Study of the Sanitation Master Plan
SDG Sustainable Development Goals
SHA Secretariat for Aid Harmonisation
SMART Specific, Measurable, Attainable, Realistic, and Time Bound
SME Small and Medium-sized Enterprises
SMI Small and Medium-sized Industries
SRAS Strategic Resource Assessment Software
SREP Scaling-up Renewable Energy Programme
TFP Technical and Financial Partner
ToR Terms of Reference
TSF Transition Support Facility
TSP Transport Sector Programme
UA Unit of Account
UNDP United Nations Development Programme
WADB West African Development Bank
WAEMU West African Economic and Monetary Union
WB World Bank
iv
EXECUTIVE SUMMARY
1. This Report focuses on the Mali’s Country Strategy Paper (CSP) 2015-2019 Mid-Term
Review combined with the 2018 Portfolio Performance Review. On 4 November 2015, the
Board of Directors of the African Development Bank approved Mali’s CSP covering the 2015-
2019 period, with the following two pillars: (i) Enhancing governance for inclusive growth; (ii)
Infrastructure development to support economic recovery. The 2015-2019 CSP was aligned
with the 2012-2017 Growth and Poverty Reduction Strategic Framework (CSCRP) and the
2016-2018 Strategic Framework for Economic Recovery and Sustainable Development
(CREDD), which was adopted to better take into account the crisis (and therefore the fragility)
in which the country found itself. However, the timeline for the production of this mid-term
review was affected by the country's turbulent political context in an environment of fragility
and also by the movement of Bank staff in Mali.
2. Despite this fragile political and security environment, Mali has maintained
macroeconomic stability over the period covered by the CSP mid-term review, with an
economic growth of about 5% in 2018, despite a persistent bearish trend. This economic growth
is not at all inclusive, because poverty increased from 42.7% in 2012 to 44.9% in 2017.
3. The review of the results matrix reveals that most of the planned results have been
achieved as part of the mid-term implementation of the CSP.
4. At the strategic level, the main lesson of the mid-term review is that the Bank has
properly addressed Mali’s most pressing development challenges. Since the adoption of the
2015-2019 CSP, Government has gradually put greater emphasis on the transformation and
development of agriculture in the country’s development policies, as well as in dialogue with
the Bank in the context of this mid-term review.
5. Consultations with Government and other stakeholders have concluded that, for the
remaining period of the 2015-2019 CSP, the Bank’s strategy and the strategic pillars remain
relevant, and can, therefore, remain unchanged. Pillar 1 will continue to support the Bank’s
actions aimed at improving governance for inclusive growth. Pillar 2, on its part, will continue
to support the Bank’s actions aimed at developing infrastructure to support economic recovery.
In implementing these two pillars over the remaining period, the Bank will pay particular
attention to the transformation of agriculture and the development of value chains.
6. As an ADF country, Mali is facing resource constraints. For the remaining CSP period,
the available resources stand at UA 13.11 million representing a country allocation under ADF-
14 (PBA and TSF), and UA 21 million representing resources from the cancellation of the
Bamako city sanitation project. These resources will be used to finance Mali’s membership to
the African Trade Insurance Agency (ATI), the partial risk guarantee for the Kiéné project,
budget support, the Agropole project Bamako peri-urban.
7. The Committee on Operations and Development Effectiveness (CODE) is invited to
take note of this mid-term review of Mali’s 2015-2019 CSP.
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I. INTRODUCTION
1. This report focuses on the mid-term review of the AfDB 2015-2019 Country
Strategy Paper (CSP) for Mali, combined with the 2018 Country Portfolio Performance
Review. This CSP, which was approved by the AfDB Board of Directors on 4 November 2015,
supports the implementation of the Growth and Poverty Reduction Strategic Framework
(CSCRP), which was the policy framework in Mali for the 2012-2017 period, then the Strategic
Framework for Economic Recovery and Sustainable Development (CREDD), which was the
reference framework for 2016-2018 due to the context of the country’s severe political crisis.
The CSP builds on two pillars: (i) Enhancing governance for inclusive growth; (ii)
Infrastructure development to support economic recovery.
2. This report assesses the mid-term progress of the 2015-2019 CSP, the country portfolio
performance, and the relevance of the Bank Group’s strategy in light of the country’s fragile
situation. It also draws lessons for continued AfDB assistance to Mali for the remaining period,
in line with the country’s priorities, the Bank’s Ten-Year Strategy and the High 5s.
II. COUNTRY CONTEXT AND PROSPECTS
II.1 Recent Political Trend
3. The country is marked by a turbulent political context and a very fragile security
situation, with the highly contested presidential elections of August 2018 and parliamentary
elections, initially scheduled for December 2018, but postponed to June 2019 by decision of
the Constitutional Court. The implementation of institutional reforms envisaged as part of the
Agreement for Peace and Reconciliation resulting from the Algiers Process and the expansion
of insecurity to the regions of central Mali are the risks that may lead to the future postponement
of parliamentary elections in June 2019. To contain these risks, Government has implemented
a new territorial division to better organise legislative elections, but also has implemented the
institutional reforms provided for by the Algiers Agreement. Political governance in Mali
between 2015 and 2017 does not seem to have improved, since the country was ranked 28th out
of 54 countries in Africa in 2017, according to the Mo Ibrahim Index with a score of 50.1/100,
against 51.1/100 in 2016 and 50.9/100 in 2015. Data on Transparency International’s
Corruption Perception Index (CPI) shows a sharp rise in corruption in Mali from the 95th
country in 2015 to 120th in 2018.
4. Despite delays in the implementation of the Agreement for Peace and
Reconciliation, the process of Disarmament, Demobilisation and Reintegration of Armed
Groups (DDR) was launched in November 2018 in Gao (north of the country). This progress in
the DDR process is an important stage in the implementation of the Algiers Agreement.
II.2 Economic Situation
Macroeconomic Situation
5. Mali’s economic growth reached 5% in 2018, although it continues to fall relative
to previous years, where it stood at 5.3% in 2017, 5.8% in 2016, and 6% in 2015, (Table 1),
because of Mali’s persistent fragility. As concerns supply, the economy is based on agriculture
Box 1 : A Presidential Term of Office that Looks Difficult
President Ibrahim Boubacar Keita’s new term of office looks difficult, given the major challenges:
(i) Difficulties in effectively implementing the Agreement for Peace and National Reconciliation;
(ii) Widening insecurity in the central regions of the country, making it dificult to organise legislative and
regional elections; and
(iii) The unending strike by Magistrates that paralyses the functioning of the judicial system.
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(driven by cotton) and services (driven by financial activities and trade), whose contribution to
growth stood at 1.9% and 2.3%, respectively, in 2018 (against 2.1% and 1.6%, respectively, in
2017). In terms of demand, household consumption is the main driver of economic growth in
Mali, with a contribution of 3.3% in 2018, compared to 4.1% in 2017. At the level of prices,
the prudent monetary policy of the Central Bank of West African States (BCEAO), has kept
inflation at a modest level of 1.7% in 2018, against 1.8% in 2017. As for the external sector,
we note a deterioration of the current account deficit in 2018 to 6.5% of GDP (against 6% of
GDP in 2017), due to the rise in imports (9.3%) stronger than the increase in exports (7.2%).
The terms of trade deteriorated in 2018 by 4.9%, and in 2017 by 1.5%. Mali has recorded a
persistent decline in its external reserves, the level of which could only finance 0.1 months of
imports in 2018 and 2017, against 0.6 in 2016, and 1.8 in 2015. This continuing decline in
foreign exchange reserves is worrying as the minimum for external reserves to be considered
sufficient is 3 months of imports. Thus, Mali is in a situation where its external reserves are
insufficient, exposing the country to the inability to cope with external shocks. Nevertheless,
centralised management of foreign exchange reserves by the Central Bank of West African
States (BCEAO) enables Mali to continue to meet its external commitments.
6. From a fiscal standpoint, authorities aim to maintain the overall fiscal balance at
a level consistent with the sustainability of the public debt and meet the convergence
criterion of the West African Economic and Monetary Union (WAEMU). In 2018, the
overall fiscal deficit was limited and improved from 2.9% of GDP in 2017 to 2.5% of GDP in
2018 (Table 1).
7. Economic prospects look relatively optimistic for the medium term (Table 1). Growth rate forecasts are 4.7% in 2019 and 2020. Inflation should remain moderate at around
1.7% in 2019 and 1.8% in 2020. The current account deficit is expected to improve from 6.5%
of GDP in 2018 to 6.3% and 6.1% of GDP in 2019 and 2020 respectively. The fall in the fiscal
deficit is expected to continue in 2019 and 2020, when it should be at 2.4% of GDP and 1.5%
of GDP, respectively, against an average of 3.1% of GDP over the period 2016-2018. However,
there are risks to this outlook, notably: (i) the fragility of the security situation; (ii) exogenous
shocks such as climate variability; (iii) the volatility of gold and cotton prices; and (iv) the
tightening of the BCEAO’s monetary policy, which could increase the cost of domestic debt.
Table 1 : Key Macroeconomic Indicators, 2015-2020 (%)
2015 2016 2017 2018(e) 2019(p) 2020(p)
Real GDP growth 6.0 5.8 5.3 5.0 4.7 4.7
Inflation 1.5 -1.8 1.8 1.7 1.7 1.8
Budget balance (% of GDP) -1.8 -3.9 -2.9 -2.5 -2.4 -1.5
Current account balance (% of GDP) -5.3 -7.2 -6.0 -6.5 -6.3 -6.1
Source: Data from the Statistics Department (ECST) of the AfDB.
Note: (e) refers to data estimation, and (p) refers to data prediction.
8. At the level of public financial management, Mali has recently implemented
reforms. Government adopted a new Public Financial Management Reform Plan (2017-2021
PREM) in 2016, with the ambition of consolidating the achievements of the Government Action
Plan for Public Financial Management Improvement and Modernization (PAGAM/GFP),
implemented from 2006 to 2016. A third PEFA assessment was carried out in 2016 and the
results indicate that: (i) progress has been made in the preparation and execution of the budget
through the implementation of WAEMU Directives and the strengthening of legal instruments
on external audit bodies; (ii) weaknesses persist, namely the large number and volume of tax
exemptions and insufficient transparency of the public procurement system. Government is
committed to the implementation of the WAEMU Harmonised Public Finance Framework. As
such, the 2018 Finance Act has been drafted and executed in programme budget mode.
3
9. The debt sustainability analysis, carried out in May 2018 by the International
Monetary Fund and the World Bank, indicates that the risk of debt distress is moderate. It is estimated that public debt will increase to 35.9% of GDP in 2018 (against 35.6% of GDP
in 2017), while the external debt will drop to 24.1% of GDP in 2018 (compared to 25.6% of
GDP in 2017). This decline in external debt is offset by an increase in domestic debt to 12.5%
of GDP (against 11% of GDP in 2017). Indeed, Government increased the issuance of domestic
debt assets in 2018, to offset the decline in external debt. The Debt Sustainability Analysis
(DSA) shows that all outstanding debt and external debt service ratios are below thresholds
(Table A.1 in the annex).
10. Mali’s performance in the Doing Business ranking is weak because it is among
the 45 worst performing countries in the world (Table 2). In addition, between 2015 and
2019, the country’s performance did not improve since, in Ease of doing business, Mali rose
from 146th out of 189 countries, with a score of 52.59 in 2015, to 145th out of 190 countries,
with a score of 53.50 in 2019.
Table 2 : Mali’s Performance in the Doing Business Ranking, 2015-2019
Indicator 2015 2016 2017 2018 2019
Rank Score Rank Score Rank Score Rank Score Rank Score
Starting a business 169 62.92 172 66.05 108 84.12 104 84.46 110 84.05
Dealing with construction permits 97 70.84 152 57.98 142 61.02 134 61.36 109 66.74
Getting electricity 132 63.88 151 48.95 152 50.60 154 51.12 159 51.57
Registering property 133 57.63 140 50.08 135 50.37 137 51.43 141 51.51
Getting credit 131 30.00 133 30.00 139 30.00 142 30.00 144 30.00
Protecting minority investment 146 42.50 166 35.00 145 40.00 146 40.00 149 40.00
Paying taxes 145 60.16 149 60.16 144 57.50 166 51.55 165 51.55
Trading across borders 163 46.33 149 45.58 89 70.79 85 73.30 92 73.30
Enforcing contracts 128 51.25 82 73.98 156 43.73 159 42.80 159 42.80
Resolving insolvency 108 40.35 100 40.35 99 41.46 94 43.22 97 43.45
Ease of doing business 146 52.59 143 50.81 141 52.96 143 52.92 145 53.50
Source: World Bank Doing Business Annual Reports (2015 to 2019 editions).
Note: Rank: 1-189 for 2015 and 2016 ; 1-190 for 2017, 2018 and 2019. Score: 0-100.
11. Despite Government’s desire to improve economic governance, major challenges
remain in Mali. Corruption is one of the greatest obstacles to foreign investment and the
country’s economic development (IMF, 2015). To stem this phenomenon, Government in 2017,
created the Central Office for Combating Illicit Enrichment, in addition to existing government
agencies dealing with corruption, namely: the Bamako Economic and Financial Centre, the
Office of the Auditor General, and the Accounts Section of the Supreme Court. All of these
efforts have not yet really reduced the perception of corruption, which remains high, based on
Transparency International’s Corruption Perception Index data above (see Paragraph 3). Mali’s
Country Policy and Institutional Assessment (CPIA) rating was 3.66/6 in 2018 and that of
governance 3.73/6 in 2018. Government has developed, with the support of technical and
financial partners, a governance matrix that proposes reforms in terms of institutional
development, economic management, public finance, land tenure, the fight against corruption
and financial crime.
12. In terms of regional integration, Mali is a landlocked country, which reinforces
the interest of regional integration for this country. Government has made regional
integration a priority in the 2016-2018 CREDD. The Bank supports the country in its
participation in regional integration by financing regional projects between Mali and other
countries of the sub-region, notably Côte d’Ivoire in the area of roads, Guinea in terms of
electricity interconnection, and the Sahel countries in agriculture.
Sectoral Situation
13. For reasons that will be developed below, Pillar 1 of the 2015-2019 CSP is maintained
but will be changed in the new 2020-2024 CSP and will focus on the transformation of
4
agriculture and the development of value chains. Indeed, since only a few months are left to
reach the end of the 2015-2019 CSP period, a change of pillar is therefore not appropriate in
the current 2015-2019 CSP, but will rather be implemented in the next 2020-2024 CSP. Hence
the importance of establishing a sectoral discussion.
Road Infrastructure
14. During the 2015-2019 CSP period, the Government of Mali adopted, in the Council of
Ministers of 28 October 2015, the National Policy on Transport, Transport Infrastructure and
Accessibility, which aims to "cover the entire territory with a modern infrastructure network"
up to 2035.
15. Table 3 shows that, over the period 2015-2017, 34,130 km of roads were maintained,
539.6 km of paved roads were constructed, and 888 km of tracks were constructed or
rehabilitated. However, the total number of km of roads maintained annually dropped sharply
from 15,778 km in 2015 to 9,687 km in 2017. The number of km of paved roads constructed
per year was low in 2017 with only 85 km, against 283 km in 2016 and 171.6 km in 2015. The
road network in Mali is characterised by the magnitude of the undeveloped classified network,
which is about 76% of the classified road network (Table A.2 in Annex 3). This small
percentage of the developed road network shows the enormous gap that the authorities must
cover to develop the entire classified road netork. Furthermore, only 15% of the developed
network road is in good condition, 32% in a passable state, and 53% is a bad state, thus
suggesting that Mali’s developed road network is highly degraded (Table A.3 in Annex 4).
Table 3 : Indicators of the Number of Kilometres of Roads in Mali, 2015-2017 (km)
Indicators 2015 2016 2017
Length of paved roads maintained 5,895 4,823 4,951
Length of earth roads maintained 9,883 3,842 4,735
Length of earth roads in good condition 10,038 nd 7,663
Total length of roads maintained 15,778 8,665 9,687
Length of paved roads constructed 171.6 283 85
Length of tracks constructed or rehabilitated 864 24 0
Source: DNR/SDR/SPC activity reports (from the 2016-2018 CREDD).
Drinking Water Supply and Sanitation Infrastructure
16. In the dynamics of Sustainable Development Goals (SDG), Mali is committed to
universal access to drinking water and sanitation by 2030. To this end, the 2016-2018 CREDD
makes the water and sanitation sector a national priority.
17. For the water sector, the reference water policy in Mali is the National Water Policy,
adopted in 2006. The policy, targeting 100% access to drinking water by 2030, is being adjusted
and the new policy will be in force in 2019. This document indicates that significant progress
has been made, but that water remains a major issue in Mali. The national rate of access to
drinking water was 68% in 2017 against 66.9% in 2016, suggesting that access to drinking
water is far from universal in Mali (see Table 4). Access to drinking water is lower in rural
areas with 65.3% in 2017 (against 65.3% in 2016), compared to 74.7% in urban areas in 2017
(against 70.6% in 2016). These low rates of access to drinking water justify the urgent need to
set up adequate infrastructure in order to move towards universal access to drinking water.
Table 4 : Rate of Access to Drinking Water in Mali, 2016-2017 (%)
Level 2016 2017
Rural areas 65.3 65.3
Urban and semi-urban areas 70.6 74.7
National 66.9 68
Source: DNH 2017 Annual Report (from the 2016-2018 CREDD).
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18. Regarding the sanitation sector, the sanitation reference policy in Mali is the National
Sanitation Policy, adopted in 2009. Targeting a sanitation access rate of 100% by 2030, this
policy is being adjusted and the new policy will be in force in 2019. With an average annual
urban growth rate of 5.6%, there is a significant increase in the quantity of waste generated per
day, about 5,000 m3/day nationally, according to the General Population and Housing Census
(2009 RGPH), including 3,000 m3 for Bamako City alone. Although access to improved and
sustainable sanitation has increased in the country, it remains insufficient, at a rate of only 35%
in 2016 (MICS, 2016); which is very far from the universal access targets set under the SDGs.
The lack of sanitation infrastructure and the absence of a waste disposal and treatment subsector
in urban or rural areas, have a negative impact on the living environment of the population.
Indeed, sanitation and waste management are an important part of people’s living environment,
since they have a direct impact on health and also on economic opportunities (attractiveness of
the territory, structuring of the waste management subsectors, etc.). There is therefore need for
sanitation infrastructure
Energy Infrastructure
19. The Government of Mali approved in the Council of Ministers of 29 March 2006, the
National Energy Policy, which was revised in 2018. The overall objective of this policy is to
"contribute to the country’s sustainable development, through the provision of energy services
accessible to the majority of the population at a lower cost and encouraging the promotion of
socio-economic activities". In 2017, activities were carried out in production capacity building,
grid extension, promotion of rural electrification and development of renewable energy sources
to cover the electricity needs of people and Mali’s socio-economic activities. These actions
have helped to improve the quality of the public electricity service (see Table 5). The national
rate of access to electricity was 42% in 2017, against 39% in 2016, and 36.11% in 2015. Despite
this improvement, the national rate of access to electricity is still very low, and does not
highlight the strong disparities between rural and urban areas. Indeed, the rate of access to
electricity was 94% in urban areas against 18.63% in rural areas in 2017; 86% in urban areas
against 19.39% in rural areas in 2016; and 98.52% in urban areas against 15.75% in rural areas
in 2015.
Table 5 : Trend of Energy Sector Indicators in Mali, 2015-2017
Indicator 2015 2016 2017
Rate of access to electricity (%) 36.11 39 42
Rate of access to electricity in urban areas (%) 98.52 86 94
Rate of access to electricity in rural areas (%) 15.75 19,39 18.63
EDM 1st tranche social electricity tariff, net of VAT (in CFAF) 59 59 59
EDM electricity generation (GWh) 1,743.4 1,905.2 2,081.4
Butane gas consumption (in tonnes) 13,087 14,530 18,263.3
Source: Collection of 2017 Mines-Energy Sector SPC Statistics Indicators (from 2016-2018 CREDD)
20. Low access to electricity seems likely to persist over time. Indeed, estimates indicate
that the rate of access to electricity in 2020 will be 45% at national level, 90% in urban areas
and 21% in rural areas; and in 2036, it will be 70% at national level, 100% in urban areas and
50% in rural areas. It is essential to meet the country’s energy needs in quality, quantity and at
lower cost.
Agriculture and Food Security
21. The Agricultural Development Policy (PDA) was adopted by the Government of Mali
in August 2013. In support of the PDA, the National Investment Plan for the Agricultural Sector
(2015-2025 PNISA) is Mali’s national planning framework for the agricultural sector. The
actors in Mali’s agricultural sector are unanimous on the fact that the development of this
country is dependent on that of the agricultural sector, which is the main source of wealth and
job creation, with 39.3% of production in 2018 (against 36.7% for the tertiary sector, and 24%
6
for the secondary sector), 62.4% of jobs, and more than 90% of export revenue in 2017. The
2017 agricultural census shows 79,260 farms in Mali, characterised by the limited number of
surface areas (on average 2 hectares), making it more difficult to move from subsistence
farming to commercial farming. Furthermore, the primary sector in Mali represents only 5.6%
of salaried jobs; which shows that efforts are still needed to improve agricultural sector income.
22. Studies show that food and nutrition insecurity is the major concern of Malian people1
(2016-2018 CREDD). The last National Food and Nutrition Security Survey (ENSAN) in
September 2018 shows that 19.1% of Malian households (compared to 23.3% in September
2017) are affected by food insecurity (2.6% of which are in a severe situation), with a 10%
acute malnutrition rate and a 24% chronic malnutrition rate. In absolute terms, the November
2018 Harmonised Framework (CH) estimates that there are 2.5 million people in a food
insecurity situation in Mali, including 185,000 people in a severe situation (2018 ENSAN).
23. Despite these challenges, Mali has enormous assets to develop the agricultural sector,
and stop the phenomenon of food insecurity. These assets, notably, are: (i) abundant water
resources (existence of a significant potential for irrigation of 2.2 million hectares, groundwater
resources estimated at 2,720 billion m³); (ii) abundant agricultural land resources (43.7 million
hectares of agricultural land, only 7% of which is cultivated, or 93% of agricultural land not yet
exploited); (iii) abundant human resources (the active rural population represents 78% of the
total population of Mali). Annex 5 provides a more detailed analysis of the potential of Mali’s
agricultural sector.
Industrial Sector
24. Despite the adoption by Mali of investment, mining exploitation, trade and labour
codes aimed at encouraging investment, the industrial sector, although clearly progressing,
remains embryonic. Industrial sector contribution to wealth creation in Mali is the lowest, with
24% of production in 2018, compared to 39.3% for the agricultural sector and 36.7% for the
tertiary sector. Extractive industries, construction and textiles are the main components of
Mali’s industrial sector.
II.3 Social Context
25. Mali’s population was estimated at 19.1 million inhabitants in 2018, with a low density
of 15.8 inhabitants/km2, an annual population growth rate of 3.1% in 2018, a birth rate of 41.5
per 1,000, and a fertility rate of 5.9 children per woman in 2018. The proportion of young people
aged 24 and over, represents 66.7% of the population in 2018. Between 2010-2016, 25% of
children under 5 were underweight, and 30.4% of them were malnourished and stunted. Overall,
the social situation in Mali is slow to improve (Figure A.1 in the annex). From the 2012 shock,
poverty increased up to 2015 and dropped slightly in 2016 to 46.8% and in 2017 to 44.9%. In
terms of inequality, the Gini Index dropped from 0.35 in 2016 to 0.34 in 2017, suggesting that
the disparities have remained unchanged. Inequalities have increased: (i) between the various
segments of the population (urban against rural areas, men against women); (ii) at the spatial
level (northern against southern regions, major cities against villages) and ; (iii) in areas such
as access to land and employment. Human development has deteriorated with a Human
Development Index (HDI) of 0.427 in 2018 (against 0.442 in 2016), and a ranking of 182nd out
of 189 countries in 2018 (against 175th out of 188 countries in 2016).
26. In the area of health, Mali has made progress. Infant mortality dropped to 65.8 per
1,000 births in 2017, compared to 67.4 in 2016. Maternal mortality is on a downtrend, at a rate
of 587 per 100,000 live births in 2015, down from 601 in 2014. The HIV/AIDS prevalence rate
also dropped to 1.2% in 2017, against 1.3% in 2016.
1 Food security and agricultural production are intimately linked in developing countries.
7
Tuberculosis immunisation coverage stagnated at 73% in 2017 and 2016. Life expectancy at
birth dropped from 59.5 years in 2017 to 58.9 years in 2018.
27. With regard to education, despite an increase in primary school enrollment,
maintaining regular schooling remains a major challenge. Enrolment in secondary school
remains low. Furthermore, adult literacy rates have made little progress. The gross primary
enrollment rate rose to 80.1% in 2017, compared to 77.1% in 2016 and 75.6% in 2015.
28. In Mali, unemployment is higher among young people and women (Table 6). The
overall unemployment rate stood at 9.1% in 2017 (against 10.1% in 2016 and 9.6% in 2015).
Young people are the social group most affected by unemployment for a level of 14.9% in 2017
(compared to 17.0% in 2016 and 15.7% in 2015), followed by women at 10.4% in 2017 (against
11.6% in 2016 and 11.0% in 2015), and men at less than 9% between 2015 and 2017. .
Table 6: Trend of the Unemployment Rate in Mali, 2015-2017 (%)
2015 2016 2017
Overall unemployment rate 9.6 10.1 9.1
Male unemployment rate 8.5 8.8 8.0
Female unemployment rate 11.0 11.6 10.4
Youth unemployment rate (15-35 years) 15.7 17.0 14.9
Source: INSTAT, 2015-2016, 2016-2017 and 2017-2018 EMOP.
II.4 Cross-cutting Themes
29. Gender. As regards gender, women generally have lower human capital than
men. Their high illiteracy and their low level of education limit their employment opportunities.
Legal protection often favours men. The proportion of seats held by women in the National
Assembly is very low: 8.8% in 2017, 2016 and 2015.
30. Fragility. In 2018, the Bank carried out a diagnosis of fragility factors in Mali. This
diagnosis revealed five categories of factors, namely: (i) Factor 1 – Political, security and
institutional fragilities; (ii) Factor 2 – Economic and financial fragilities; (iii) Factor 3 – Social
fragilities, those related to poverty and those of an unequal nature; (iv) Factor 4 – Fragilities
related to the environmental challenge; (v) Factor 5 – Regional and international fragilities (see
Annexes 6 and 7). The Bank has taken into account fragility issues in its operations in Mali.
31. Environment and Climate Change. Mali was signatory to the United Nations
Framework Convention on Climate Change (COP21) in Paris in 2015. The country has also
incorporated the environmental dimension and climate change into the 2016-2018 CREDD.
III. STRATEGIC OPTIONS
III.1 Country Strategic Framework
32. As part of the 2015-2019 CSP, the 2016-2018 CREDD was the policy framework in
Mali2. Through its two pillars, the 2015-2019 CSP is aligned with CREDD. The 2016-2018
CREDD has come to an end, and the 2019-2023 CREDD is being adopted. The national
consultation workshop on this new strategic framework took place from 11-13 March 2019.
The document is already transmitted to the Prime Minister’s Office for adoption in the Council
of Ministers. The Bank’s next 2020-2024 CSP for Mali will be aligned with the 2019-2023
CREDD.
2 The 2016 – 2018 CREDD was adopted in April 2016.
8
III.2 Aid Coordination and Harmonisation
33. Three levels of coordination exist for Mali’s Technical and Financial Partners (TFP)
Group: (i) overall coordination around CREDD; (ii) sectoral and thematic coordination around
12 Theme Groups (TG); and (iii) the "floating" level constituted by the ad hoc groups.
34. Within the framework of their partnership relations, Government and TFPs have
various dialogue frameworks, which are aimed at monitoring development policies and the
budget process, improving the predictability and effectiveness of aid and ensuring mutual
accountability to the citizens of Mali.
III.3 Bank’s Positioning in the Country and Comparative Advantage
35. The Bank is active in the field of aid coordination and harmonisation in Mali. The
AfDB was coordinator of the "Economy and Finance" TG from November 2013 to January
2017. Currently, it is a member of this TG, which consists of two sub-groups: "Statistics" and
"Private sector development". It is also currently coordinator of the "Transport" TG and active
member of various TGs.
36. In terms of portfolio size, the AfBD, the European Union and the World Bank are the
multilateral donors with a stronger presence in Mali (Table A.4 in Annex 8). In 2016, the AfDB
had the 3rd largest portfolio in Mali (CFAF 473.5 billion), after the European Union (CFAF
896.9 billion) and the World Bank (CFAF 767.4 billion). The AfDB invests mainly in the
agricultural sector, where it has developed a comparative advantage. The main bilateral donors
are the United States, Germany, China and France. Agriculture is the sector most widely
covered by partners (Table A.5 in Annex 9). However, support for agriculture is still
insufficient.
37. The international community pays particular attention to Mali because of the country’s
security situation and the consequences for the stability of the entire sub-region. The Bank is
an important actor of the international community’s action in this country. Indeed, the Bank has
been called upon to play an active role in the response to Mali’s fragility situation, particularly
in the context of the Alliance for the Sahel, where the Bank plays a leading role in the agriculture
sector.
III.4 Strengths, Opportunities, Challenges and Weaknesses
38. The analysis of the country context in previous sections shows that Mali’s main
strengths and opportunities, as well as its challenges and weaknesses (Box 2) have largely
remained the same as those identified during the adoption of the 2015-2019 CSP. However,
some challenges have become more pronounced since the approval of the CSP, particularly in
terms of financial governance, which affects certain AfDB projects and, therefore, the quality
of its portfolio. In addition, greater effort is necessary to accelerate structural transformation,
especially through strengthened support for sectors with potential for greater value added.
9
IV. CSP IMPLEMENTATION: RESULTS OBTAINED AT MID-TERM
IV.1 Allocation of Bank Group Resources to Mali
39. The 2015-2019 CSP for Mali covers the last two years of ADF-13 and the ADF-
14 cycle. The amount of resources for financing the 2015-2019 CSP was initially estimated at
UA 310 million. The indicative country allocation, based on the performance of ADF-13, was
UA 54.82 million for 2014-2016 and the remaining for 2015-2016 was UA 28 million. The
strategy also benefited from resources within the framework of performance-based allocation
(PBA) for ADF-14 for an amount of UA 56.37 million and the additional resources of Pillar I
of the TSF for UA 60 million under ADF-14. The strategy also banked on resources from the
private sector window, Pillar III of the TSF, the regional operations package and other trust
funds.
IV.2 Mid-Term Implementation Status of the Operations Programme
40. The operational lending programme provided for in the CSP was very selective, due
to the country’s initial limited allocation. It provided for 16 new operations, including 9 projects
for water and sanitation, energy and transport; 3 budget support operations; 1 institutional
support operation in economic governance; and 3 project studies in the transport sector. The
non-lending programme included 3 economic and sector works . At mid-term, 2 projects of the
lending programme had not yet met the conditions precedent to first disbursement and 1 lending
programme project has been cancelled. For the non-lending programme, at mid-term, only one
study was carried out among the 3 planned.
Box 3: Strengths, Opportunities, Challenges and Weaknesses
Strengths and opportunities:
Willingness of political authorities to prioritize the development of the agricultural sector, by allocating
15% of the national budget to this sector, and even considering increasing this rate;
Effective furtherance of implementation of the Peace Agreement, in particular with the Accelerated
Development Programme for the Northern Regions (PDA/RN), and the Disarmament, Demobilization
and Reintegration (DDR) process for Armed Groups;
Stable macroeconomic framework with growth of around 5% per year since 2013;
Considerable arable land (43.7 million hectares of agricultural land, of which only 7% is cultivated, or
93% of agricultural land not yet cultivated), and considerable water wealth (2 major rivers flow through
the country: the Niger River and the Senegal River; existence of a significant potential for irrigation of
2.2 million hectares, groundwater resources estimated at 2,720 billion m³);
Possible demographic dividend (65% of the population is young and under 25 years old).
Challenges and Weaknesses:
Poverty and unemployment levels are still very high, especially in rural areas and among youth;
Weak capacity to mobilize domestic resources;
Weak private sector dynamism due to the lack of major business climate reforms;
Insufficient basic infrastructure with a negative impact on the competitiveness of the economy;
Lack of inclusiveness of economic growth;
Dependence of the economy on two export products: gold (nearly 70% of export earnings), and cotton
(nearly 14% of export earnings);
Insufficiently diversified economy, particularly vulnerable to fluctuations in commodity prices and
climate change;
Increase in gender-based violence (GBV), especially with the political and security crisis that the
country has experienced;
Landlocked countries due to an unfavourable geographical location, with no access to the sea and a
lack of competitiveness in regional transport;
Increased perception of corruption as one of the greatest obstacles to foreign investment and economic
development in the country.
10
IV.3 Results Achieved by the CSP at Mid-Term
41. Regarding Pillar 1, the original CSP had 8 outcomes and 8 outputs. At the end of 2018,
4 outcomes and 4 outputs were achieved3. With respect to Pillar 2, the original CSP had 7
outcomes and 13 outputs. At the end of 2018, 5 outcomes and 9 outputs were achieved4 (see
Table A.6 in Annex 10).
IV.3.1 Pillar 1 – Enhancing Governance for Inclusive Growth
42. In terms of enhancement of economic and financial governance. For High 5
"Integrate Africa", all the six WAEMU public financial management guidelines have been
transposed, which has allowed for the use of the programme budget by all ministries. For the
procurement method, the review of procurement instruments, including the process of adopting
a new public procurement code, is under way. However, the country has made amendments to
Decree No. 2015-0604/P-RM of 25 September 2015 on the Public Procurement Code and
Decree No. 2016-0920/P-RM of 6 December 2016 on the Code of Delegations of Public
Services. These efforts made it possible to have a percentage of 93,5% for public contracts
awarded by open tender in 2017, which is below the target percentage of 95%. These results
should help improve financial governance, and thus contribute to reducing fragility.
43. In terms of private sector development and job creation particularly for young
people and women. The 2016-2018 Strategic and Operational Reform Action Plan is available,
but was delayed in its implementation, leading to a 2-point decline of Mali in the world ranking
of reforming countries. Indeed, Mali was ranked 143rd reforming country in 2018, against 141st
in 2017. However, Mali’s ranking is up positively and significantly compared to 2014, since
the country moved from 155th reforming country in 2014 to 145th country in 2019. Legislation
on surveys and a real computerisation of Malian surveys are in progress. The reform of the
lands and surveys legal framework has therefore not yet been adopted, contrary to the expected
results. It is important that these results are all achieved for a better development of the private
sector that can play a crucial role in reducing poverty, and thus fragility. For High 5
"Industrialise Africa", 52 SMEs/SMIs were created, in line with the expected results. For High
5 "Improve the quality of life for the people of Africa", 5,095 new jobs were created,
particularly for young people and women.
IV.3.2 Pillar 2 – Infrastructure Development toSupport Economic Recovery
44. In the area of road infrastructure development to improve the movement of goods
and persons. For High 5 "Integrate Africa", work on the Zantiébougou-Kolondiéba-Côte
d'Ivoire border road has been executed at 37%. Since this road is under construction, there is
therefore still no impact on the level of regional trade, contrary to the expected results. As
concerns High 5 "Improve the quality of life for the people of Africa", the Bank’s intervention,
through the PRESAN-KL and PRESA-DCI projects and the construction of the Zantiébougou-
Côte d'Ivoire road, has helped to create 366,210 jobs (at least 620,000 jobs were planned),
87.5% of which are held by young people (66.27% of jobs held by young people were planned);
and to have 94.5% of employees of companies that are Malian (at least 90% were planned).
Development work on the Douentza-Gao road has not yet started, contrary to what was
expected.
45. In the area of development of drinking water supply and sanitation
infrastructure. For High 5 "Improve the quality of life for the people of Africa", the Bamako
Sanitation Project was approved in January 2017, but was cancelled in 2019 for persistent non-
fulfillment by Government of the conditions precedent to first disbursement. Work on the
3 Among the 8 outcomes and 8 outputs planned in the original CSP, 2 outcomes and 2 outputs were not achieved. The information for 2
outcomes and the remaining 2 outputs was not yet available at the time of the mid-term review. 4 Among the 7 outcomes and 13 outputs planned in the original CSP, 1 outcome and 2 outputs were not achieved. The information for 1
outcome and 1 output was not yet available at the time of the mid-term review, and 1 output was cancelled during this mid-term review.
11
Bamako DWS from Kabala is executed at 50%. The Bank’s interventions, through the
PRESAN-KL and PRESA-DCI projects, have improved the rate of access to drinking water
and sanitation to 57% for the regions of Gao, Koulikoro and Segou (an access rate of 49% was
planned), ensured the drilling of 140 boreholes and enabled 445,980 people to have access to
drinking water.
46. In the area of development of energy infrastructure to increase access and at
lower cost. For High 5 "Light up and power Africa", the national energy policy and the national
renewable energy development strategy papers are available, in line with the expected results.
47. In the area of agriculture and food security. The Bank’s interventions have set up
95 modern infrastructure (14 markets, 12 classrooms, 25 storage warehouses, 5 community
health centres, 29 multi-purpose centres, 10 literacy centres). For High 5 "Feed Africa", the
Bank’s interventions have helped increase irrigation schemes by 10,586 ha, cereal production
by 19,140 tonnes of rice, vegetable production by 20,300 tonnes of market gardening, as well
as raise the cereal yield level by 11,250 kg/ha and the vegetable yield by 148,000 kg/ha.
48. The lack of basic infrastructure in Mali has a negative impact on the competitiveness
of the economy; hence the importance of these results, which help to improve competitiveness,
create more wealth and, thus, reduce fragility. Similarly, since agriculture absorbs the largest
part of the country’s labour force, it is crucial to achieve even better results in the sector so that
it contributes to further reducing fragility.
IV.4 Other Results of the Strategy
49. Knowledge Products. As part of the 2015-2019 CSP, the Bank had planned three
economic and sector works, focusing respectively on: (i) the study on the private sector profile;
(ii) the study to improve road safety in Bamako District; and (iii) the study on vocational
training and informal jobs. Most of the results expected in the area of knowledge products were
not achieved because, out of the three envisaged studies, only the study on transport, focusing
on "the improvement of road safety in Bamako District", was carried out in July 2017.
However, three studies, not planned in the 2015-2019 CSP, are under way: (i) study of the
integrated development and climate resilience project in the Delta 2 plains; (ii) study of the
Malian agriculture transformation and youth employment project; and (iii) study of the gender
profile in Mali.
50. Fragility factors. The expected results have been achieved. The Bank has effectively
mobilised the resources of Pillar III of the TSF to help Mali for a better territorial planning of
investments through the establishment of the national spatial planning system, with a strong
component of national capacity building. The Bank has also incorporated fragility factors in
evaluating the results of the country strategy and, especially, in defining the reforms and
corrective measures of the strategy. The Bank’s operations in Mali have taken into account
fragility concerns. First, AfDB projects on the Sahelian Strip are part of the Alliance for the
Sahel programme. For example, the Bank established the Socio-Economic Reintegration
Support Project for the Population of Northern Mali to the tune of UA 10 million to facilitate
the reintegration of the fragile population living in the conflict zone. The Bank’s Mali office
recommends additional Pillar III resources and readily available financing instruments for
investments under the Alliance for the Sahel such as the KONNA project. Second, under Pillar
III of the TSF, the Bank set up the National Regional Planning Scheme for UA 1 million, to
enable regional planning to identify and address the pockets of fragility. In addition, the Bank
implemented the Trans-Saharan Highway (RTS2) project between Bourem and Kidal in the
north of the country (conflict zone) for UA 33.75 million.
12
This project, which is christened "national unity road" by Government, is strategic and capital
for the political stability of Mali and the West African sub-region. Finally, the Bank also
allocated UA 1 million to Mali, under Pillar III of the TSF, to: (i) support the activities of the
General Census of Economic Units; (ii) prepare Mali’s gender profile; and (iii) build the
capacity of institutions.
51. In the area of gender. The last study carried out by the Bank on the gender profile in
Mali dates back to December 2011, and therefore does not cover the period of implementation
of the 2015-2019 CSP. But, the AfDB plans to carry out a study on the gender profile in Mali
for 2019.
52. In the area of food security. The indicator "improved food and nutrition security",
defined in the 2015-2019 CSP, is included at the "Impact" level in agricultural projects, and so
will be measured from the end of these 2019-2020 projects. The indicator "necessary food and
nutrition security stock available", defined in the 2015-2019 CSP, is not included in the logical
frameworks of agricultural projects. But, it could be approximated by the cumulative aggregate
production of cereals from agricultural projects. Thus, it appears that the necessary food and
nutrition security stock available in Mali in 2018, is 19,140 tonnes of cereals.
IV.5 AfDB Contribution to Achievement of the High 5s
IV.6 Mise en œuvre de la Déclaration de Paris, et engagements de Busan
IV.6 Implementation of the Paris Declaration and the Busan Commitments
53. The Bank is signatory to the Paris Declaration and Busan Commitments. As such,
the Bank’s interventions in Mali are aligned with the national priorities defined by Government.
The AfDB also coordinates its interventions with the other development partners. Indeed, most
stakeholders participated in the preparation of the CSP, including Government, civil society
organisations and the private sector. Government approved the CSP, and the two CSP priority
areas were identified jointly with Government.
V. COUNTRY PORTFOLIO PERFORMANCE REVIEW
V.1 Bank Group’s Active Portfolio
54. Given that the last review of the Bank’s portfolio in Mali took place in April 2016, this
review therefore concerns the period April 2016 - December 2018. As at 15 December 2018,
the Bank’s overall portfolio in Mali has 24 operations for a total amount of UA 451.25 million,
corresponding to USD 624.18 million or CFAF 360.45 billion. The public sector comprises 20
projects, two of which have not yet fulfilled the conditions precedent to the first disbursement:
Light up and power Africa
The national energy policy and the national renewable energy
development strategy papers are available, in line with the expected results, but are waiting for the Ordinance amending
the old law.
Integrate Africa - All the six WAEMU public financial management guidelines have been transposed, which has allowed for the use of the programme
budget by all ministries.
- Work on the Zantiébougou-Kolondiéba-Côte d'Ivoire border road effectively started in March 2017, and is executed at 37%.
Since this road is under construction, there is still no impact on
the level of regional trade.
Feed Africa
- Increased irrigation schemes of 10,586 ha.
- Increased cereal production of 19,140 tonnes of rice, and
vegetable production of 20,300 tonnes of market gardening. - Increased cereal yield of 11,250 kg/ha, and vegetable yield of
148,000 kg/ha.
Industrialise Africa
- SMEs/SMIs have been created. - A total of 52 SMEs/SMIs were created.
Improve the quality of life for the people of Africa - The total number of jobs created, particularly for young people and women, is 5,095.
- 366,210 direct jobs created, with 87.5% of them occupied by young people, and 50% by women. - Rate of access to drinking water and sanitation improved by 57% in the regions of Gao, Koulikoro and Segou.
- 140 boreholes drilled.
- 445,980 people have access to drinking water.
13
the 225-kilovolt multinational electricity interconnection project between Mali and Guinea
approved on 13 December 2017 for UA 32.4 million; and the Project for the Economic
Empowerment of Women in the Shea Subsector approved on 3 December 2018 for UA 5
million. One public sector project was cancelled: the Bamako City Sanitation Project approved
on 11 January 2017 for UA 30 million, for persistent failure to meet the conditions. The
disbursement rate of active public sector portfolio is 39.07% for 17 operations.
55. The agriculture sector, with 7 operations, accounts for 47% of the Bank’s financing in
Mali, followed by infrastructure with 22% for 1 project, and the water and sanitation sector
with 15% for 2 projects. The other sectors, namely energy, governance and social development,
account for 7%, 6% and 3%, respectively. (see Figure 1 above).
56. The portfolio contributes to the Bank’s 5 priorities (High 5s), notably with 33% of the
portfolio for "Feed Africa", 30% for "Integrate Africa", 21% for "Improve the quality of life for
the people of Africa", 11% for "Light up and power Africa", and 5% for "Industrialise Africa".
(see Figure 2 below).
57. The portfolio comprises 3 regional operations: (i) the construction of a paved road to
facilitate transport between Mali and San Pedro, Côte d’Ivoire’s second port; (ii) the
programme to build resilience to food and nutrition insecurity in the Sahel region; and (iii) the
Guinea-Mali electricity interconnection project.
58. The private sector portfolio comprises 4 operations: the line of credit to Mali Solidarity
Bank (BMS) for UA 4.97 million; the line of credit for trade financing to Sahel-Saharan Bank
for Investment and Trade (BSIC) for UA 6.72 million; the line of credit to Mali Development
Bank for UA 24.97 million; and the Moulin Moderne du Mali Project for UA 22 million. The
overall private sector disbursement rate is 31,83%.
Figure 1: Breakdown of Active Portfolio by Sector Figure 2: Breakdown of Portfolio by High 5
V.2 Portfolio Monitoring and Evaluation
59. The general portfolio performance rating is 2.49 on a scale of 1 to 4. It is 2.50 for
physical performance and 2.48 for achievement of developmental outcomes. Detailed analysis
of specific ratings reveal that four performance indicators received the lowest ratings. These are
submission of audit reports, financial management, procurement and disbursements. This
unsatisfactory performance is mainly due to the late establishment of project management
teams. This weakness will be corrected by the obligation to establish the project management
team before presentation of the project to the Board.
V.3 Implementation Status of the 2016 PPIP
60. The four recommendations of the 2016 Portfolio Performance Improvement Plan were
fairly well followed. Only one recommendation was fully satisfied, or 25% of the proposed
measures; two recommendations, or 50% of the measures, made progress and one
recommendation, or 25% of the proposed measures, was not satisfied. In particular, it concerns
Agriculture
47%
Infrastructure
22%
Water and
Sanitation
15%
Energy
7%
Social
development
3%
Governance
6%
Feed
Africa
33%
Integrate
Africa
30%
Improve the
quality of life
for the people of Africa
21%
Light up
and power
Africa 11%
Industrialise Africa
5%
14
the objective of starting the implementation of all operations within the six months of their
approval. Currently, the portfolio has two operations targeted for cancellation: these are the
PRESAN-KL and PRESA-DCI projects suspended for ineligible expenditure, and one
operation cancelled which is the Bamako City Sanitation Project, the conditions precedent to
the first disbursement of which have not been fulfilled, more than twelve months after approval.
61. The elements gathered during the preliminary analysis on the implementation of the
2016 PPIP are presented below, in the form of traffic lights (green, orange and red).
62. The main factors that undermine portfolio quality and performance are as follows:
(i) A start-up delay that currently affects four operations: the start-up delay is 8 to
12 months for various reasons related to quality at entry. Efforts are being made
to put the 4 operations back on track and facilitate their implementation (see
table A.8 in the Annex 12).
(ii) The issue of insecurity, which impacts negatively on the implementation of
operations in northern and central Mali, due to difficulties in accessing these
conflict zones. The Malian government has pledged to intensify the
implementation of the peace agreement and continue the reforms undertaken at
the level of defense and the security of the national territory, including the G5
initiative.
(iii) The capacity of sectoral authorities, which are unsufficient to formulate, prepare
and implement strategic projects.
63. The country dialogue, focusing specifically on the greater ownership of the portfolio
by the Malian side, continues through regular meetings with ministries that manage AfDB-
financed projects in Mali. Furthermore, a bi-monthly meeting is organised by the Public Debt
Department to identify the bottlenecks encountered in project implementation and propose
solutions.
V.4 Performance of Bank Group in Mali
64. Since the last portfolio review, the Bank has intensified its support for project
implementation through the organisation of bi-monthly meetings with the PIUs of the General
Directorate of Public Debt, increased monitoring missions on the ground, and prior review of
documents to be submitted for AfDB approval. The Bank provided dynamic support to the
project management units in terms of procurement; and organised four training seminars,
including two fiduciary clinics for PIUs, a training on procurement planning and the
Popularise and ensure compliance with Presidential Directive 02/2015 on the design, implementation and cancellation of sovereign
operations.
No cancelled operation despite the start-up delays of > 12 months
/Some operations have teams before approval
Accelerate the execution of projects by one-off implementation and respecting the quality of
results.
Annual disbursement rate: remains at 16% despite the targets of 18% (June 17) and then
22% (June 18).
Take into account the increasing financial constraints of the Malian government in
finalising the project financing plan.
New operations with a counterpart contribution of < 10%;
Financing of the preparation of new projects
Ensure an irreproachable closing at the fiduciary level and promoting the sustainability of project
achievements.
Operations closing with a one-off completion report and a takeover of achievements by the
State.
15
establishment of the Procurement Plan, and a training workshop, open to PIUs, in the Bank’s
procurement rules and procedures. Most of the results planned in terms of managing the Bank’s
portfolio have been achieved, in view of the support described above and the effort made to
process the files received from the PIUs within clearly defined timeframes.
V.5 Country Performance Outcomes Based on the Questionnaire on Portfolio
Quality
65. Despite the insecurity context that exacerbates the country’s fragility, Government has
been up to the task in the identification, preparation, and evaluation of projects proposed to the
Bank. The performance of Government and PIUs in project management showed a clear
improvement. However, major irregularities have been identified in the financial management
of two projects (PRESSAN-KL and PRESA-DCI) and the use of counterpart contribution
resources, whose payment is significantly delayed. These irregularities led to the cessation of
disbursements for these projects.
66. The portfolio dialogue questionnaire and discussions with executing agencies
unanimously highlighted constraints related to design, management (weakness of PIUs in
procurement and fiduciary management), inadequate financing of the counterpart contribution
and institutional changes at the level of Government. The Bank’s response time to requests for
non-objection and the frequent change in Task Managers have also been highlighted as
contributing to the difficulties encountered in project implementation. However, there is a
gradual improvement in project management, thanks to the multiple support provided by the
country office through on-the-job training and close monitoring of files.
V.6 Conclusions of Meetings with Stakeholders
67. On Government performance: The main areas of concern to government are mainly
the weakness of certain structures involved in project implementation. Project management by
executing agencies is characterised by some multifaceted inertia: the preparation of documents
and the implementation of the recommendations of action plans are generally unsatisfactory,
and the application of AfDB rules and procedures on procurement, use of working capital and
disbursement, suffers from many weaknesses. We also note weak monitoring of project
implementation by supervisory ministries, especially for PRESSAN-KL and PRESA-DCI.
68. On AfDB performance: The delay in processing files is a strong criticism of the Bank
by the executing agencies. This constraint should be mitigated with the new Delegation of
Authority Matrix, which gives more responsibility to field offices.
69. In conclusion, the performance of the Bank’s national public portfolio remains
good with a score of 2.49 on a scale of 4, an improvement compared to September 2016, when
it was 2.09. Efforts should be continued to sustain this performance and improve it.
70. Interim recommendations on portfolio issues. Government must: (i) strengthen the
programming of counterpart funds; (ii) strengthen the monitoring of project implementation by
establishing performance contracts with PIU members; (iii) reduce the delay in the procurement
and disbursement request preparation process. The Bank must: (i) ensure project quality at
entry; (ii) organise training for its members on the Bank’s procedures for procurement,
disbursement and fiduciary risk management; (iii) assess key staff of PIUs on the basis of
performance contracts signed at project start-up; (iv) reduce the processing time of files
submitted by Government for non-objection.
16
V.7 Revised PPIP
71. The PPIP targets institutional issues related to the preparation of future projects. The
recommendations apply to project quality at entry, the care to be taken in the establishment of
the PIUs and their composition, and the payment of the counterpart contribution. Annex 12
presents the revised 2018 PPIP.
VI. LESSONS LEARNT AT MID-TERM
VI.1 Lessons for the Bank Group
72. At the strategic level, the main lesson, during the mid-term review, is that the Bank
has addressed Mali’s most pressing development issues and challenges in the right direction.
CSP implementation was successful, both in terms of approval and the results achieved. Thus,
the Bank should stay the course during the remaining CSP period. But, since the approval of
Mali’s 2015-2019 CSP, the country’s development context has not changed (country in
transition still classified as fragile since 2015), but development issues and challenges have
partly changed. Indeed, two different country development policy frameworks overlapped
during the 2015-2019 CSP period, notably: (i) the 2012-2017 GPRSF, and (ii) the 2016-2018
CREDD, which was adopted to better reflect the crisis (and therefore the fragility) in which the
country finds itself. Thus, the country’s development priorities have evolved, as Government
has made the transformation of agriculture and the development of value chains a priority.
73. With regard to the private sector development, the Bank will have to play a catalytic
role through the optimal use of the full range of instruments and services available at the AfDB
window. The Bank should increase its visibility with Malian enterprises to better inform them
about the financial products and services it offers.
74. The Bank should also continue to look for opportunities for greater flexibility and
adaptability in Mali. Indeed, the security situation does not allow development actors, including
the Bank, to operate in a conventional manner. This specific situation inevitably has an impact
on Bank portfolio quality, particularly because of the difficulties of accessing certain areas of
the territory. The specificity of the situation and the approach that the Bank must take in this
type of context of fragility should be continuously reinvented, especially in the choice and
configuration of operations. This is the condition for a high impact of operations and a better
performance of the portfolio.
VI.2 Lessons for Government
75. The willingness of the authorities to develop promising sectors, public-private
partnerships and SMEs, offer increased opportunities to support the private sector. During the
remaining CSP period, the exploitation of these opportunities will have to be a priority.
Government needs to do more to address the following issues: the fragility of the security
situation; the mobilisation of counterpart funds; delays in the transfer of resources and skills to
local authorities; difficulties in better integrating the demographic challenge into public
policies; and low levels of achievement of the Sustainable Development Goals. Governance
also remains a huge challenge for Government.
VI.3 Lessons for Other Development Partners.
76. Employment impact results can only be obtained by revitalising the synergy of
interventions of all technical and financial partners in private sector development, in particular:
the revitalisation of the "private sector development" partners’ theme group; strengthening the
dialogue with Government on the business environment (given the slow pace of reform seen in
the 2018 and 2019 Doing Business report); and, especially, the issue of long-term resources for
the financing of SMEs/SMIs in Mali.
17
VII. BANK’S STRATEGY FOR THE REMAINING CSP PERIOD
VII.1 Relevance of the Pillars of the Strategy
77. The two initial pillars of Mali’s 2015-2019 CSP were adequate to address the country’s
development challenges in that, as previously demonstrated, governance issues are a
development issue, since corruption has been identified as one of the most major obstacles to
the country’s economic development. In addition, as demonstrated in the previous sections, the
country suffers from a considerable lack of basic infrastructure in several sectors.
78. Due to the change in Mali’s development policy framework, through the adoption in
2016 of the 2016-2018 CREDD as the new policy framework, replacing the 2012-2017 CSCRP,
during the implementation of the 2015-2019 CSP, two adjustments were validated in
consultations with stakeholders, during this mid-term review, notably: (i) Government’s stated
priority towards agricultural development, and (ii) the need to further focus on strengthening
Mali’s resilience, building on the 2018 Diagnosis of Fragility Factors.
79. The country’s development challenges have changed. Since the country is in a crisis
context, the fight against fragility appears to be a major priority. As indicated below, the Bank’s
assessment, through the 2016 Country Resilience and Fragility Assessment (CRFA), shows
strong pressures negatively affecting the agricultural sector. Thus, it is proposed that Pillar 1,
which focuses on improvement of governance for inclusive growth, remains unchanged for the
remaining period of the 2015-2019 CSP, and that Pillar 2, which focuses on infrastructure
development to support economic recovery, remains unchanged, but special emphasis should
be laid on transformation of agriculture and development of value chains. Consequently, for the
remaining 2015-2019 CSP period, the Bank will continue its direct support for the promotion
of governance (Pillar 1) and infrastructure development (Pillar 2).
80. The importance of paying particular attention to the transformation of agriculture and
development of value chains is explained by several reasons. First, the Malian Government has
shown a strong commitment to prioritise the agricultural sector, by devoting 15% of the
country’s budget to this sector in 2018. In 2019, an increase of 3.43% is planned in the funds
allocated to agriculture. Second, this Government vision is aligned with 3 of the Bank’s High
5s: "Feed Africa", "Industrialise Africa" and "Improve the quality of life for the people of
Africa". Lastly, the results of the 2016 CRFA support the choice of agriculture as an important
element of Mali’s 2015-2019 CSP5. The results show, indeed, that natural disasters, water
scarcity, malnutrition and undernourishment, and volatile food prices, generate strong pressures
that may have a negative impact on the country’s food security. Therefore, the development of
the agricultural sector in Mali is an appropriate response to the concerns highlighted by the
Bank’s CRFA assessment. Similarly, the results of the 2016 CRFA assessment show Mali’s
weak capacity to set up transport, energy, drinking water and sanitation infrastructure, justifying
their importance in the 2015-2019 CSP.
VII.2 Bank’s Assistance Strategy for the Remaining CSP Period
81. For the reasons explained above, during the remaining CSP period, Pillars 1 and 2
remain unchanged. However, the Bank’s support will be fine-tuned and more nuanced to better
address, in a more targeted manner, the emerging challenges of the country, as well as to fully
align the Bank’s support with its new priorities and strategies. The Bank’s assistance strategy,
under each pillar, is presented below.
82. Pillar 1 of the CSP. The Bank’s assistance strategy under Pillar 1 "Enhancing
governance for inclusive growth" will continue to focus on economic and financial governance,
as well as private sector development and job creation particularly for young people and
5 The Bank’s 2018 CRFA assessment has not yet ended. Data are not yet available.
18
women. The Bank’s support under this Pillar 1 remains aligned with CREDD, the Ten-Year
Strategy and the High 5s.
83. Pillar 2 of the CSP. The Bank’s assistance strategy, under Pillar 2 "Infrastructure
development to support economic recovery", will continue to focus on roads and energy, but
will also aim at agricultural development. The Bank’s support in these sectors will be in line
with CREDD’s operational priorities for infrastructure development and the agricultural sector,
and the Bank’s High 5s.
VII.3 Indicative Assistance Programme for the Remaining CSP Period
84. Annex 13 provides the Bank’s public sector indicative assistance programme for Mali
for the remaining CSP period. This assistance programme is based on the 2019 country
allocation under ADF-14 (PBA and TSF) and on resources from the cancellation of the Bamako
City Sanitation Project. To these available resources can be added those of the private sector
window, Pillar III of the TSF, the package for regional operations and other trust funds
VII.4 Non-lending Activities
85. The non-lending programme of activities over the remaining CSP period consists in
carrying out a study on the gender profile in Mali.
VII.5 Areas of Dialogue with the Country
86. For the remaining CSP period, the Bank will continue dialogue with Mali on its areas
of intervention in the country, notably governance, infrastructure development, the
transformation of agriculture and the development of value chains. In addition, the Bank will
continue dialogue with the country on: (i) the management and mitigation of fragility factors;
(ii) the issue of inclusive growth; (iii) private sector development; (iv) green growth; (v)
promoting gender in the implementation of national policies; and (vi) the improvement of
country portfolio performance.
VII.6 Monitoring and Evaluation of the Bank Group’s Assistance
87. The CSP includes a results framework with strategic objectives, results indicators and
target objectives. This results-based framework has not been modified. To assess the impact of
its assistance, the Bank uses the indicators retained in this CSP results and monitoring
framework, as well as the indicators retained in the logical frameworks of various sectoral
projects. Furthermore, the results of annual portfolio performance reviews and project
completion reports (PCR) will be useful sources in monitoring progress towards the
achievement of CSP objectives.
VII.3 Risks and Mitigation Measures
Table 7 : Risks and Mitigation Measures Risks Mitigation Measures
Given the difficult context, there are risks that the
authorities’ commitment to the reform
programme will decline for the remaining period.
The Bank will continue, in coordination with
TFPs, to focus on reforms in all dimensions of its
dialogue.
Risk related to the materialisation of the
commitment of the countries of the region to
advance the agenda of the Agreement for Peace
and Reconciliation.
The willingness of stakeholders must be
sufficiently reflected in the effective
implementation of the agreements and decisions.
19
VIII. CONCLUSION AND RECOMMENDATION
88. As part of the implementation of Mali’s 2015-2019 CSP, two reference frameworks
overlapped: the 2012-2017 CSCRP and the 2016-2018 CREDD.
89. The mid-term review of Mali’s CSP shows that most of the expected results have been
achieved. For the remaining period, CREDD ended in December 2018, and a new strategy
(2019-2023 CREDD) will be available in April 2019. The mid-term review has concluded that
the two initial Pillars of the CSP remain unchanged, but that Pillar 2 will nevertheless pay
particular attention to the transformation of agriculture and the development of value chains.
90. The country’s political calendar in a context of fragility as well as staff movements
within the Bank have had an impact on the timing of this mid-term review. In spite of this, the
completion report is being prepared for submission to CODE for review in the third quarter of
2019. This report will be followed by the preparation of the Bank’s next intervention strategy
in Mali for the period 2020-2024.
91. CODE members are invited to take note of this mid-term review of Mali’s 2015-2019
CSP.
Annex 1: Table A.1: Mali’s Foreign Debt Sustainability Indicators, 2018–2038 (%)
source: imf country report no.18/141.
Threshold Projections
2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2038
VA
ratio of
debt on
GDP 40 15 15 15 15 15 15 15 15 16 16 17 20
Exports 150 66 71 72 74 76 78 81 85 90 93 96 130
Revenue 250 78 80 78 77 76 74 73 74 74 76 78 86
Debt
service
ratio on
Exports 20 4 4 5 5 5 5 5 5 5 5 5 8
Revenue 20 4 5 5 5 5 5 5 4 4 4 4 6
Annex 2 : Figure A.1: Trend of the Incidence of Poverty in Mali by Place of Residence, 2001-
2017 (%)
Sources: EMEP 2001, ELIM 2006, MICS/ELIM 2009, EMOP-2011, EMOP-2014, EMOP-2015, EMOP-2016,
2017 CREDD (2016 – 2018) Report
17,6
7,9 9,6 10,7 11,1 11,27,4
4,7
28,634,1 32
47,7 46,6 47,7
36,932,9
66,8
57,8
51,2 51,1 52,8 53,1 55,2 53,655,6
47,643,7 45,6 46,9 47,2 46,8 44,9
0
10
20
30
40
50
60
70
80
2001 2006 2009 2011 2014 2015 2016 2017
Bamako Autres villes Rural Ensemble
- Bamako - Other cities - Rural - Total
Annex 3 : Table A.2 : Mali’s Classified, Developed and Undeveloped Road Network, 2018
SUBJECT
ROAD CATEGORIES
Paved
Roads
Modern
Earth
Roads
Improved
Tracks
Total
Developed
Seasonal
Tracks
Network
Total
Km Km Km Km % Km % Km
Roads of
national interest 6,363 1,737 1,306 9,406 67% 4,696 33% 14,102
Roads of
regional interest 326 304 2,282 2,912 41% 4,140 59% 7,052
Roads of local
interest 74 0 8,896 8,970 31% 19,959 69% 28,929
Roads of
municipal
interest
393 0 0 393 1% 38,548 99% 38,941
TOTAL
NETWORK
7,156 2,041 12,484 21,681 24% 67,343 76% 89,024
33% 9% 58% 100%
Source: Road Data Service, National Directorate of Roads of Mali
Annex 4: Table A.3 : State of the Developed Road Network in Mali
Subject Total Length
State
Good Passable Bad
Km % Km % Km % Km %
Paved roads 7,156 100% 3,116 44% 2,392 33% 1,648 23%
Modern earth roads 2,041 100% 230 11% 860 42% 951 47%
Improved tracks 12,484 100% 0 0% 3,601 29% 8,883 71%
Total developed
network 21,681 100% 3,347 15% 6,853 32% 11,482 53%
Source: Road Data Service, National Directorate of Roads of Mali
Annex 5: Potential of the Agricultural Sector in Mali
Mali has enormous potential and untapped assets in agriculture:
A great agro-ecological diversity reflected in that of agricultural production
systems, ranging from cotton-based systems in the south to the oasis system in
the far north, through dry cereal-based systems and pastoral systems (semi-
sedentary or transhumant).
A considerable potential for agricultural land: Out of the 43.7 million
hectares available for agriculture and livestock, only 3.2 million hectares (or 7%)
are cultivated, less than 300,000 hectares of which benefit from other sources
than rainwater. Land suitable for irrigation, subject to development, has an
estimated potential of 2.2 million hectares.
Significant water resources: All watersheds of rivers offer an irrigable potential
of over 2.2 million hectares. The Inner Niger Delta extends over more than
30,000 km² and is one of the great ecological riches of the country, and even of
West Africa. Groundwater resources are estimated at 2,720 billion m³ with a
recovery rate estimated at 66 billion m³/year.
A considerable potential for aquaculture with 5,500 sites covering 895,000
hectares inventoried, including 620,500 hectares of lowlands, ponds and plains;
the level of development of this potential remains very low. The potential for
fish production is over 200,000 tonnes per year.
A significant forestry potential: The forest area covers about 100 million
hectares, of which only 21 million (or 17% of the national territory) have real
production. The regeneration potential is estimated at 7 million tonnes per year.
Abundant and diversified animal resources: With pasture surface areas
estimated at more than 30 million hectares, Malian livestock is one of the largest
in the sub-region. It consists mainly of cattle with over 9 million head, sheep and
goats with over 25 million head animals, and nearly one million camels.
Traditional poultry, with a population of nearly 35 million, is a remarkable
source of proteins and income in rural areas. Modern breeding farms are found
in Bamako District and in the Koulikoro region. In terms of genetic diversity,
Mali has many indigenous breeds of cattle, sheep, goats and camels, which are
perfectly adapted to the environment.
A significant potential for the development of the agro-industrial subsector: Agricultural products are minimally processed before marketing. Indeed, the
manufacturing industry accounts for less than 5% of Malian GDP, despite efforts
made by authorities to improve the business environment and promote
investment. Therefore, the authorities want to focus on the structural
transformation of the Malian economy as the driver of its development. Thus,
the new 2019-2023 development strategic framework, based on a new long-term
development vision, the "Mali 2040 National Prospective Study", considers as
priority strategic thrust "inclusive growth and structural transformation of the
economy".
A young and predominantly agricultural population: Mali will have a
population of about 21.300 million inhabitants in 2020. Despite the real
problems that can be generated by this population growth, it is an advantage for
the development of an essentially urban internal market.
The emergence of agricultural professional organisations: The rural sector
has more than 15,000 agricultural organisations and a small proportion of
regional and national structured organisations.
Significant progress at the legal, regulatory and institutional level for
agricultural sector management, notably the adoption of the LOA and its
enabling instruments.
Annex 6 : 2018 Diagnosis of Fragility Factors in Mali
The results of the diagnosis reveal the following 5 categories of fragility factors:
Factor 1: Political, Security and Institutional Factors
The political situation is dominated by domestic policy challenges that have an impact on
institutions, security and external relations; namely (i) in general, the management of public
affairs under the governance of the normal functioning of the State and its institutions, in the
sovereign functions, including the control or mastery of corruption, according to the principles
of efficiency, transparency and accountability; (ii) the preparation and democratic management
of the July 2018 elections with multiple consequences, and whose outcome can be explosive if
they are not well managed; and, (iii) the management of northern issues, the implementation of
the Agreement for Peace and Reconciliation resulting from the Algiers Process and their
consequences on the security situation, by avoiding amalgams between Malo-Malian issues, on
the one hand; and international geopolitics, on the other hand.
Factor 2 : Economic and Financial Issues
The resilience of the country is growing in economic recovery. Economic growth has been
around 6% on average per year between 2013 and 2017. However, the sustainability and
inclusiveness of growth are not ensured: the industrial sector is still lagging behind; cotton
and gold are not integrated into value chains ; services are not part of the global value chain ;
and water control, energy and sanitation remain a concern. The result is a considerable financial
loss for the country, compounded by the difficulties of increased mobilisation of public
financial resources and foreign exchange savings from the current account balance. The country
has not been indebted for as much: the risk of debt distress is moderate. But food insecurity
continues to affect 15% of the population, on a sustainable basis. The livestock subsector is
both a source of inter-ethnic conflict and irrational currency consumption, while the
criminalisation of the economy through illegal trade and illicit trafficking in prohibited
products, is growing.
Factor 3 : Social Issues, Combating Poverty and Inequalities
Despite the high growth of the last four years, it has not been sufficient enough to be
inclusive and pro-poor, in order to catch up with the countries of its 1980 or 1990 cohort,
namely countries that had the same level of development. Paradoxically, growth promising
production regions are relatively also high poverty areas: Kayes, to a lesser extent, but
especially Mopti, Sikasso, Ségou and Koulikoro have an incidence of monetary poverty higher
than the national average (47%) and that of the northern regions. Multidimensional poverty.
which includes the level of accessibility and the quality of social services, affects 78% of the
population or 13 million inhabitants. Low access to education contributes 37.9% to
multidimensional poverty, compared with 22.4% for health and 39.7% for living conditions.
Poverty is rural and female. The strengthening of social coverage and access and the
improvement of the quality of basic social services (education, health, water, sanitation, rural
tracks, electricity and living environment) constitute a major challenge. But employment
remains the main stake. Unemployment and under-employment are generalising and affect
more than 40% of the population, with women and young people, in particular, being the
majority (50.2% of the population is female and more than 60% of young people are under 25).
The issue of gender equality is more worrying. Inequalities at the expense of women, lead to
deprivations of certain civil liberties and limit access to tools that enable them to overcome
poverty. Access to, but also and above all keeping girls in school remain a challenge, despite
the measures regularly announced by authorities to reverse the trend. Without education, many
women cannot support themselves and marry young. A significant proportion even become
mothers before their 18th birthday. On the other hand, it should be noted that the transition to
women’s empowerment in Mali remains too slow and limited in the face of strong resistance
and gender bias on the part of women themselves. The most effective method would be to
increase men’s understanding of the benefits of an egalitarian society such as family health,
child survival and increased income. This could include developing a more positive notion of
masculinity and integrating the role of men in promoting gender equality. In terms of
importance, social fragility, although it can be considered as the result of all other situations of
vulnerability, comes after political and security factors, followed by economic issues. The
environmental challenge is a constraint, an exogenous fact, just like some international regional
and geopolitical issues.
Factor 4 : Environmental Challenge
Environmental issues and the manifestations of climate change are not top priorities in
countries in great fragility, facing political, security, social, economic and financial
difficulties. Certain hazards (drought, floods followed by erosion, desert locust invasions) can
be considered as exogenous natural risks, independent of humans, even if men can be the cause
or repair them. Unable to provide sustainabe solutions to current issues, countries in fragile
situations are even less ready to find sustainable solutions to the environmental challenge, as is
the case of Mali, which is the 9th country most exposed to natural hazards, but the 49th least
prepared country to take mitigation and adaptation measures. According to the EMDAT
database in Belgium, the economic cost of natural hazards for Mali, is estimated at more than
USD 1.5 billion per year, or 20% of GDP.
Factor 5 : Regional and International Issues
Mali’s geographical position and the extent of it territory and the borders with seven
countries, which neither it nor the others can control, place it from the outset at the centre
of major issues of geopolitics and regional geostrategy. The Malo-Malian Tuareg question,
has taken regional and international proportions since 1990, and has increased since the return
of armed groups from Libya. Added to this is the process of internationalisation of terrorism
from the strategic alliance with various groups, including Boko Haram and AQIM. Illicit trade
in the Sahel Strip is accompanied by the deployment of force and violence for the control of the
road and networks of product trafficking (oil, gold, drugs, human beings, etc.). These
dimensions make the conflict in northern Mali a complex international situation, even if the G5
Sahel initiative is already multinational. These intense population movements are also
accompanied by public health risks through the spread of virus epidemics (AIDS, Ebola, Lassa,
Deng) as well as diseases (tuberculosis, meningitis and plague). To overcome these challenges,
the country will have to transform the current mode of governance in favour of greater
accountability of elites, dominant coalitions and the political class. The country will also benefit
from the process of regional integration and international cooperation, while protecting itself
from the negative effects of regionalisation and globalisation. In this context, the country
benefits from the support of the WTO and various technical and financial partners under the
Enhanced Integrated Framework for trade and cross-border trade facilitation.
Annex 7: 2014 Diagnosis of Fragility Factors in Mali
In 2014, five categories of fragility factors were diagnosed in Mali. However, this assessment was
further explained by the situation in the North:
(i) Political, institutional and security factors that derive from multiple rebellions dating back
several decades, themselves born of unsatisfied claims of ethnic groups and amplified by the Arab
Spring; Libyan in particular;
(ii) Structural weaknesses of economic and financial governance: insufficient mobilisation,
ineffective allocations and inefficient use of public resources, low attractiveness of private and
foreign investment, low diversification beyond cotton and gold, weak economic transformation,
and volatility in commodity prices;
(iii) Social factors of poverty and precariousness, resulting from the lack of mechanisms for the
distribution and redistribution of the fruits of growth, fuelling growing social and regional
inequalities with tensions at national and sub-regional level and the vulnerability of the population
to various risks of crime, trafficking and diseases, including the HIV/AIDS pandemic and other
virus pandemics (Ebola… ) ;
(iv) Natural, geographical and environmental factors, which have a direct impact on water
availability, production from agropastoral activities, food security and various migrations of the
population;
(v) Interactions between internal factors and external factors resulting from the power struggle
between the major economic powers for access to natural resources (land, cotton, gold, other
mines and oil) and the effects of globalisation, the spread of violence and insecurity (terrorism,
epidemics and the effects of climate change).
Annex 8: Table A.4: Interventions of Development Partners in Mali in 2016
Partner Total Portfolio Amount in Mali (CFAF billion)
Multilateral Partners
AfDB 473.5
ABEDA 44.0
World Bank 767.4
EIB 31.1
IDB 281.1
EBID 67.9
WADB 144.9
FAO 44.3
IFAD 30.4
IMF 38.7
UNFPA 12.8
FSD 24.8
WHO 28.0
UN Women 0.2
OPEC 39.8
WFP 279.6
UNDP 76.3
UNESCO 4.4
UNHCR 3.8
UNICEF 204.4
European Union 896.9
UNMAS 0.28
Bilateral Partners
Germany 350.3
Belgium 60.2
Canada 221.8
China 350
South Korea 13.4
Denmark 165.4
Spain 33.6
United States 884.3
France 256.8
Italy 8.3
Japan 43.3
Kuwait 31
Luxemburg 78.
Monaco 2.5
Norway 12.2
Netherlands 138.8
Sweden 105.3
Switzerland 92,3
Source: Data from the Medium-Term External Resource Framework (2018-2020 MTRF)
XI
Annex 9: Table A.5 : Sectors of Intervention of Development Partners in Mali in 2016
Partner Agric Tra ICT PFM Educ Water YWC Pop TPH Gov Secur Ener RTI STI LNR PS CC Dec Know Cul Hea Cash
AfDB X X X X X X X X X X
Germany X X X X X X X X X X X X X X X X X X
Belgium X X X X X X X X
Canada X X X X X X X
Denmark X X X X X
European Union X X X X X X X X X X X
Spain X X X X X X X X X X
France X X X X X X X X X X X X X X
FAO X X
UN Women X X X X X X
UNICEF X X X X X
WHO X
UNFPA X X X
WFP X X
UNDP X X
UNHCR X X
UNMAS X
UNESCO X X X X X X
Sweden X X X X X X X X
Switzerland X X X X X X X
Monaco X X X X X X X
Netherlands X X X X X X X X X X X
Japan X X X X X X X
United States X X X X X X
Kuwait X X
FSD X
World Bank X X X X X X X X X X X X X
EIB X
IMF X
WADB X X X
EBID X X X
OPEC X X X X
Italy X X
IsDB X X X X X X
ABEDA X X X X
IFAD X X X
South Korea X X
Luxemburg X X X X X X X X X
China X X X X X
Norway X X
Source: Data from the Medium-Term External Resource Framework (2018-2020 MTRF)
Note: Sectors. Agric: Agriculture and food security; Tra: Trade; ICT: Information and communication technology; PFM: Public financial management; Educ: Education and training; Water: Water
and sanitation; YWC: Youth, women and childhood; Pop: Population; TPH: Town planning and housing; Gov: Governance, justice, rule of law and reforms; Secu: Security and peacebuilding;
Ener: Energy; RTI: Road and transport infrastructure; STI: Science, technology and innovation; LNR: Land and natural resources; PS: Private sector; CC: Climate change; Dec: Decentralisation;
Know: Knowledge; Cul: Culture; Hea: Health; Cash: Cash transfer.
XII
Annex 10: Table A.6 : Results-Based Framework of Mali’s 2015-2019 CSP
Strategic objectives
of the 2012-2017
CSCRP
Constraints for
the
achievement
of results
Expected outcomes
at the end of the
CSP period (2019)
Expected outputs at
the end of the CSP
period (2019)
Outcomes
expected at mid-
term (2017)
Outcomes
achieved at mid-
term (2018)
Outputs
expected at mid-
term (2017)
Outputs achieved at mid-
term (2018)
Pillar 1 - Enhancing governance for inclusive growth
Enhancing economic and financial governance
Institutional
development and
governance
Weakness of
economic and
financial
governance
All ministries use
the programme
budget
Effective
implementation of
the 6 WAEMU
Directives
The percentage
of ministries
using the
programme
budget
increased
All ministries
use the
programme
budget
Transposition of
the 6 WAEMU
public financial
management
guidelines
All the 6 WAEMU
public financial
management guidelines
directives were
transposed
Public procurement
system improved
Implementation of a
new public
procurement code
The percentage
of procurement
by open bidding
is 92% in 2014
to 95% in 2017
The percentage
of procurement
by open bidding
is 93.5% in
2017
Adoption of a
new public
procurement
code
The review of
procurement instruments,
including the process of
adopting a new public
procurement code, is
underway
Budget
transparency and
control improved
Implementation of
an improved budget
transparency and
control system
Budget
transparency
and control
improved
Information not
yet available at
the time of the
mid-term review
Setting up of an
improved
budget
transparency
and control
system
Information not yet
available at the time of
the mid-term review
Overall
deconcentration
rate of budget
appropriations is
30% in 2019
Budget
deconcentration
strengthened
Overall
deconcentration
rate of budget
apprropriations
increases from
16.5% in 2014
to 20% in 2017
Information not
yet available at
the time of the
mid-term review
Improved
budget
deconcentration
Information not yet
available at the time of
the mid-term review
XIII
Table A.6: Results-Based Framework of Mali’s 2015-2019 CSP (continued)
Strategic objectives
of the 2012-2017
CSCRP
Constraints for the
achievement of
results
Expected outcomes
at the end of the
CSP period (2019)
Expected outputs at
the end of the CSP
period (2019)
Outcomes
expected at mid-
term (2017)
Outcomes
achieved at mid-
term (2018)
Outputs
expected at mid-
term (2017)
Outputs achieved at
mid-term (2018)
Pillar 1 - Ehancing governance for inclusive growth (continued)
Private sector development and job creation particularly for young people and women
Institutional
development and
governance
Low private sector
development
Business
framework for
stimulating private
investment
improved
Business
framework
conducive to
private investment
available
Mali’s ranking
in the "Doing
Business" report
significantly up
compared to
2014, when the
country was
ranked 155th
Mali is ranked
the 141st
reforming
country in 2017
and
143rd in 2018
Implementation
of the 2015-
2017 Strategic
and Operational
Action Plan for
business
framework
reform
The 2015-2017
Strategic and
Operational Action
Plan for reform is
available and
implemented
Reform of the lands
and surveys legal
framework is
effective
Implementation of
the lands and
surveys legal
reform
Reform of the
lands and
surveys legal
framework
adopted
The reform of
the lands and
surveys legal
framework is
not yet adopted
Legislation on
lands and
surveys
available
Legislation on
surveys and a real
computerisation of
Malian surveys are
under way
Number of new
SMEs/SMIs
increased
Number of
SMEs/SMIs created
Number of new
SMEs/SMIs
increased
52 SMEs/SMIs
increased
Number of
SMEs/SMIs
created
52 SMEs/SMIs
created
Number of jobs
increased
Number of new
jobs created
Number of jobs,
particularly for
young people
and women
increased
5,095 jobs,
particularly for
young people
and women,
created
Number of new
jobs created,
particularly for
young people
and women
5,095 jobs,
particularly for
young people and
women, created
XIV
Table A.6 : Results-Based Framework of Mali’s 2015-2019 CSP (continued)
Strategic objectives
of the 2012-2017
CSCRP
Constraints for the
achievement of
results
Expected outcomes
at the end of the
CSP period (2019)
Expected outputs at
the end of the CSP
period (2019)
Outcomes
expected at mid-
term (2017)
Outcomes
achieved at mid-
term (2018)
Outputs
expected at mid-
term (2017)
Outputs achieved at
mid-term (2018)
Pillar 2 – Infrastructure development to support economic recovery
Road infrastructure development to improve the movement of goods and persons
Promotion of
accelerated,
sustainable and pro-
poor growth,
creating jobs and
income-generating
activities
Internal and
external isolation
and low density in
terms of modern
infrastructure
Zantiébougou-CI
border road
developed in Mali
140 km of the
Zantiébougou-
Konlondiéba-CI
road developed and
paved
Level of
regional trade
increased
The road is not
yet released. So
no effect yet on
the level of
regional trade
Zantiébougou-
Konlondiéba-
Côte d’Ivoire
road
development
works started
Work on the
Zantiébougou-Côte
road started
effectively in March
2017 and is 37%
completed.
Strengthening of
long-term bases for
development and
equitable access to
quality social
services
Douentza - Gao
road developed and
paved
1,192 km of the
Douentza – Gao
road developed and
paved
Creation of
direct and
indirect jobs,
particularly for
young people
366,210 direct
jobs in
man/days
At least 620,000
direct jobs in
man/days,
including
66.27% held by
young people
366,210 direct jobs in
man/days (87.5%
held by young people
for the Zantiébougou-
Côte d'Ivoire road)
At least 90% of
employees of
companies are
Malians.
94.5% of employees
are Malians
Work on the
Douentza - Gao
road started
The work has not yet
started
XV
Table A.6 : Results-Based Framework of Mali’s 2015-2019 CSP (continued)
Strategic objectives
of the 2012-2017
CSCRP
Constraints for the
achievement of
results
Expected outcomes
at the end of the
CSP period (2019)
Expected outputs at
the end of the CSP
period (2019)
Outcomes
expected at mid-
term (2017)
Outcomes
achieved at mid-
term (2018)
Outputs expected
at mid-term
(2017)
Outputs achieved at
mid-term (2018)
Pillar 2 – Infrastructure development to support economic recovery (continued)
Development of drinking water supply and sanitation infrastructure
Strong population
growth
The Bamako City
Sanitation Project
started
The Bamako City
Sanitation Project
was cancelled
The Bamako
DWS from
Kabala started
The implementation
of the Bamako
DWS is 50%
complete
Rate of access to
drinking water and
sanitation
improved: (i) from
49 to 57% for the
regions of Gao,
Koulikoro and
Ségou; and (ii)
from 36 to 64% for
Bamako.
Access to drinking
water and sanitation
for the regions of
Gao, Koulikoro,
Ségou and Bamako
improved
Rate of access to
drinking water
and sanitation
improved
The rate of access
to drinking water
and sanitation is
improved from
49% to 57% for
the regions of
Gao, Koulikoro
and Ségou
Number of water
points constructed
140 boreholes
drilled
Number of
persons having
access to drinking
water from the
infrastructure
created
445,980 persons
in total have
access to drinking
water
357,000 m3/day of
water volume
produced in 2019
213,000m3/day of
water volume
produced in 2017
Reduction of cases
of diarrhea
and/or cholera
11,278 cases of
diarrhea in 2019
against 34,850
currently
XVI
Table A.6 : Results-Based Framework of Mali’s 2015-2019 CSP (continued)
Strategic objectives
of the 2012-2017
CSCRP
Constraints for the
achievement of
results
Expected outcomes
at the end of the
CSP period (2019)
Expected outputs at
the end of the CSP
period (2019)
Outcomes expected
at mid-term (2017)
Outcomes achieved
at mid-term (2018)
Outputs expected at
mid-term (2017)
Outputs achieved at
mid-term (2018)
Pillar 2 – Infrastructure development to support economic recovery (continued)
Development of energy infrastructure to increase access and lower costs
Promotion of
accelerated,
sustainable and pro-
poor growth,
creating jobs and
income-generating
activities
Low density in
terms of energy
infrastructure
Policy, legal,
regulatory and
institutional
framework
conducive to the
promotion of
renewable energy
investments
improved
Revised policy,
strategic, regulatory
and institutional
framework
available
National Energy
Policy and National
Renewable Energy
Development
Strategy revised
National Energy
Policy and National
Renewable Energy
Development
Strategy are revised
and are available
National Energy
Policy and National
Renewable Energy
Development
Strategy revised
and available
National Energy
Policy and National
Renewable Energy
Development
Strategy Papers are
available
Agriculture and food security
Promotion of
accelerated,
sustainable and pro-
poor growth,
creating jobs and
income-generating
activities
Low density in
terms of modern
infrastructure
Number of modern
infrastructure
created
95 modern
infrastructure
created
Significant
vulnerability of the
economy, climate
variability and
environmental
degradation
Irrigation schemes
increased
30% improved
poultry, 108 tonnes
of chicken
marketed
24 tonnes of farmed
fish
Agricultural
production
improved
Cereal production
increased by 19,140
tonnes of rice and
vegetable
production by
20,300 tonnes of
market gardening
Irrigation schemes
increased
Irrigation schemes
increased by 10,586
ha
Irrigation schemes
increased
7 tonnes/ha of
paddy rice, 40
tonnes/ha of tomato
and onion and 50
tonnes/ha of potato
Agricultural yield
improved
Cereal yield
increased by 11,250
kg/ha of paddy rice
and vegetable yield
by 148,000 kg/ha of
market gardening
Irrigation schemes
increased
Irrigation schemes
increased by 10,586
ha
XVII
Table A.6: Results-Based Framework of Mali’s 2015-2019 CSP (end)
Strategic objectives
of the 2012-2017
CSCRP
Constraints for the
achievement of
results
Expected outcomes
at the end of the
CSP period (2019)
Expected outputs at
the end of the CSP
period (2019)
Outcomes expected
at mid-term (2017)
Outcomes achieved
at mid-term (2018)
Outputs expected at
mid-term (2017)
Outputs achieved at
mid-term (2018)
Pillar 2 – Infrastructure development to support economic recovery (continued)
Agriculture and food security (continued)
Agricultural
production and
productivity
increased and
diversified
4750 ha
rehabilitated + 176
ha developed
Food and nutrition
security
strengthened
Sufficient food and
nutrition security
stock available
Food and nutrition
security improved
Improved food and
nutrition security is
integrated at the
"Impact" level in
agricultural
projects, and so will
be measured from
the end of these
projects in 2019
Sufficient food and
nutrition security
stock available
The necessary food
and nutrition security
stock in Mali in 2018
is 19,140 tonnes of
cereals
XVIII
Annex 11 : Table A.7: AfDB Overall Portfolio in Mali as at 15 December 2018
Project Name Approval Date Closing Date
Loan/Grant
Amount
Committed
(UA)
Cumulative Disbursement as at
15/12/2018
Disbursement Rate
(%)
AGRICULTURE
153,372,531 67,296,185 43.88%
1
IRRIGATION DEVELOPMENT PROGRAMME IN THE
BANÍ BASIN AND SÉLINGUE 27.05.2009 31.12.2018 44,000,000 38,098,534 86.59%
2
PROGRAMME TO BUILD RESILIENCE TO FOOD AND
NUTRITION INSECURITY IN THE SAHEL
15.10.2014 30.06.2020 36,390,000 2,996,604 8.23%
3
PROJECT FOR FOOD SECURITY CONSOLIDATION
THROUGH DEVELOPMENT OF IRRIGATION
FARMING
27.05.2009 31.12.2019 36,000,000 12,978,842 36.05%
4
KOULIKORO REGION FOOD AND NUTRITION
SECURITY ENHANCEMENT PROJECT
17.09.2014 31.12.2019 33,645,961 13,022,439 38.70%
5 CLIMDEV MALI METEO PROJECT 31.12.2019 782,705 47,375 6.05%
6
STUDY OF THE INTEGRATED DEVELOPMENT AND
CLIMATE RESILIENCE OF POPULATIONS IN THE
DELTA 2 PLAINS (PDIR-PD2)
11.09.2017 31.03.2020 1,564,865 100,000 6.39%
7
PPF- MALIAN AGRICULTURE TRANSFORMATION AND
YOUTH EMPLOYMENT PROJECT 18.08.2017 31.12.2018 989,000 52,391 5.30%
7 INFRASTRUCTURE
70,770,000 19,919,480 28.15%
8
PROJECT FOR ROAD DEVELOPMENT AND TRANSPORT
FACILITATION BETWEEN MALI AND COTE D’IVOIRE 26.11.2015 30.06.2021 70,770,000 19,919,480.2 28.15%
8 WATER AND SANITATION
80,000,000 20,600,000 25.75%
9 BAMAKO DRINKING WATER SUPPLY PROJECT 09.10.2013 31.12.2018 50,000,000 20,600,000 41.20%
10 BAMAKO CITY SANITATION PROJECT 11.01.2017 31.12.2021 30,000,000 - 0.00%
10 ENERGY 53,344,410 529,057 0.99%
11
RENEWABLE ENERGY PROMOTION SUPPORT
PROJECT 22.10.2014 31.01.2019 965,860 400,000 41.41%
12
PROJECT TO DEVELOP MINI HYDROELECTRIC POWER
PLANTS 4.12.2017 31.12.2022 20,000,000 129,057 0.65%
13
225-KV GUINEA-MALI POWER INTERCONNECTION
PROJECT 13.12.2017 31/12/2021 32,378,550 - 0.00%
13 SOCIAL DEVELOPMENT
15,134,846 171,247 1.1%
14
CAPACITY BUILDING FOR THE NATIONAL
DOCUMENTATION AND INFORMATION CENTRE FOR
WOMEN AND CHILDREN (CNDIFE)
74,846 59,607 79.64%
15
YOUTH FORUM ON EMPLOYMENT AND PEACE BY
GYIN - GLOBAL YOUTH INNOVATION NETWORK
60,000 11,640 19.40%
16
PROJECT FOR THE ECONOMIC EMPOWERMENT OF
WOMEN IN THE SHEA SUBSECTOR (PAEFFK) 03.12.2018 31/07/2023 5,000,000 -
17
SOCIO-ECONOMIC REINTEGRATION SUPPORT
PROJECT FOR THE POPULATION OF NORTHERN MALI 30.11.2016 30/06/2021 10,000,000 100,000 1.00%
17 GOVERNANCE
19,970,000 18,549,757 92.89%
18 ECONOMIC GOVERNANCE SUPPORT PROJECT 01.07.2013 30/06/2018 9,970,000 9,166,538 91.94%
19 GROWTH SUPPORT PROGRAMME 15.12.2017 30/06/2018 9,000,000 9,000,000 100.00%
20 REGIONAL DEVELOPMENT MASTER PLANS 28.02.2017 31/12/2019 1,000,000 383,220 38.32%
20 PRIVATE SECTOR
58,661,241 18,670,000 31.83%
21 LINE OF CREDIT TO THE MALI SOLIDARITY BANK 06.07.2011 01/08/2022 4,970,000 4,970,000 100.0%
22 TRADE FINANCE LINE OF CREDIT TO BSIC MALI 16.05.2018 26/12/2018 6,716,424 - 0.0%
23 MALI DEVELOPMENT BANK 18.10.2018 8/12/20215 24,974,817 - 0.0%
24 MOULIN MODERNE DU MALI 17.09.2014 30/11/2018 22,000,000 13,700,000 62.27%
TOTAL OVERALL PORTFOLIO PROJECTS
451,253,029 145,735,727 32.30%
TOTAL ACTIVE PORTFOLIO PROJECTS
325,213,237 127,065,727 39.07%
XIX
Annex 12: Table A.8: 2018 Revised Country Portfolio Performance Improvement Plan
I. LOW PROJECT QUALITY AT ENTRY
IDENTIFIED PROBLEMS REQUIRED ACTIONS RESPONSIBILITY IMPLEMENTATION
STATUS
1. Many project implementation difficulties
stem from poor studies and errors and omissions
contained in project files (under-valuation of
costs, over-sizing)
1.1 In the short term. Make use of changes in the list of goods
and services to take into account the errors and omissions
identified.
1.1.1 Sectoral
experts/GVT Immediate
1.2 In the medium term. Submit to the Country Team requests
for extensions to ensure the completion of ongoing activities.
1.1.2 Sectoral
experts/GVT/Country
Team
1.1.3 Sect. Min./ GVT
Permanent
2 PROCUREMENT
IDENTIFIED PROBLEMS REQUIRED ACTIONS RESPONSIBILITY DEADLINE
2.1 Inadaptation of the procurement methods
retained
2.1.1 Executing agencies and the Bank should make changes to
procurement methods if necessary. Sectoral experts/SNFI
/COML Immediate
2.2 Poor PIU procurement capacity
2.2.1 SNFI Procurement Experts based at COML should
continue and intensify their support to executing agencies in the
area of procurement. SNFI/COML/GVT
Immediate and
permanent
2.3 Delays related to the Bank’s "no-objection"
deadline
2.3.1 Use the authority granted to the Field Office and the
Regional Procurement Coordinator to process files at COML SBFI/COML Immediate
2.3.2 COML should strengthen the system of weekly
monitoring of files pending at the Bank COML/RDGW Immediate
2.4 Poor performance of contractors awarded
works
2.4.1 Make greater use of post-qualification for the final award
of works contracts to companies. SNFI/Sectoral experts Immediate
XX
Annex 13: Table A.9 : 2019 Indicative Operational Programme
Planned Approval
Year
Sources of
Financing
Amount
(UA million)
Project
2019 ADF grant (country
allocation)
4.08 Mali’s membership
of ATI
2019 ADF loan (country
allocation)
2.38 Partial risk guarantee
of the Kiéné project
2019 ADF loan 15 Budget support
2019 ADF loan and TSF
loan
12.65 (ADF loan :
2.15 and TSF loan :
10.5)
Agropole project
Bamako Peri-Urban
XXI
Annex 14: Table A.10: Mali: Key Macroeconomic Indicators
Source: Database of the AfDB Statistics Department (ECST)
Indicators Unit 2000 2013 2014 2015 2016 2017 (e) 2018 (p)
National Accounts
GNI at Current Prices Million US $ 3,093 12,776 13,840 13,904 13,964 ... ...
GNI per Capita US$ 280 770 810 790 770 ... ...
GDP at Current Prices Million US $ 2,640 13,250 14,411 13,045 14,025 13,187 14,424
GDP at 2000 Constant prices Million US $ 2,640 4,792 5,129 5,435 5,750 6,057 6,351
Real GDP Growth Rate % -3.3 2.3 7.0 6.0 5.8 5.4 4.8
Real per Capita GDP Growth Rate % -6.0 -0.7 3.9 2.9 2.7 2.2 1.7
Gross Domestic Investment % GDP 19.9 17.8 17.6 17.0 17.0 17.2 17.3
Public Investment % GDP 6.6 5.9 8.0 8.0 8.4 8.5 8.5
Private Investment % GDP 13.4 11.9 9.7 9.0 8.7 8.8 8.8
Gross National Savings % GDP 11.1 14.9 15.7 13.0 11.4 12.7 12.7
Prices and Money
Inflation (CPI) % -0.7 -0.6 0.9 1.4 -1.8 0.8 1.2
Exchange Rate (Annual Average) local currency/US$ 709.9 493.9 493.6 591.2 593.1 582.1 558.1
Monetary Growth (M2) % 44.5 10.0 6.9 15.0 10.2 6.2 ...
Money and Quasi Money as % of GDP % 28.0 35.2 34.6 36.7 37.5 43.2 ...
Government Finance
Total Revenue and Grants % GDP 19.3 17.4 17.1 19.2 19.2 19.7 19.8
Total Expenditure and Net Lending % GDP 22.4 19.7 20.0 21.0 22.2 23.0 23.0
Overall Deficit (-) / Surplus (+) % GDP -3.0 -2.4 -2.9 -1.8 -3.1 -3.3 -3.2
External Sector
Exports Volume Growth (Goods) % -99.8 7.1 -2.3 32.1 -4.0 5.1 4.2
Imports Volume Growth (Goods) % -99.9 2.0 12.6 49.9 13.3 3.8 4.6
Terms of Trade Growth % -30.2 -15.8 6.1 14.2 15.2 -0.5 -3.4
Current Account Balance Million US $ -256 -375 -677 -698 -931 -739 -748
Current Account Balance % GDP -9.7 -2.8 -4.7 -5.3 -6.6 -5.6 -5.2
External Reserves months of imports 4.7 3.0 2.1 1.8 0.6 0.1 0.1
Debt and Financial Flows
Debt Service % exports 10.7 4.6 5.9 7.7 5.9 7.0 8.2
External Debt % GDP 89.6 22.2 19.5 22.2 23.7 25.7 23.5
Net Total Financial Flows Million US $ 314 1,370 1,136 1,275 1,325 ... ...
Net Official Development Assistance Million US $ 288 1,398 1,236 1,204 1,209 ... ...
Net Foreign Direct Investment Million US $ 82 308 144 153 126 ... ...
Source : AfDB Statistics Department; IMF: World Economic Outlook,April 2018 and International Financial Statistics, April 2018;
AfDB Statistics Department: Development Data Portal Database, April 2018. United Nations: OECD, Reporting System Division.
Notes: … Data Not Available ( e ) Estimations ( p ) Projections Last Update: May 2018
MaliSelected Macroeconomic Indicators
-2.0
-1.0
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
%
Real GDP Growth Rate, 2006-2018
-4
-2
0
2
4
6
8
10
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
Inflation (CPI),
2006-2018
-12.0
-10.0
-8.0
-6.0
-4.0
-2.0
0.0
2,006
2,007
2,008
2,009
2,010
2,011
2,012
2,013
2,014
2,015
2,016
2,017
2,018
Current Account Balance as % of GDP,
2006-2018
XXII
Annex 15: Table A.11: Mali: Comparative Socio-economic Indicators
Source: Database of the AfDB Statistics Department (ECST)
Year Mali Africa
Develo-
ping
Countries
Develo-
ped
Countries
Basic Indicators
Area ( '000 Km²) 2018 1 240 30 067 92 017 40 008Total Population (millions) 2018 19,1 1 286,2 6 432,7 1 197,2Urban Population (% of Total) 2018 42,4 42,5 50,4 81,5Population Density (per Km²) 2018 15,8 43,8 71,9 31,6GNI per Capita (US $) 2017 770 1 767 4 456 40 142Labor Force Participation *- Total (%) 2018 66,6 65,9 62,1 60,1Labor Force Participation **- Female (%) 2018 50,8 55,5 47,6 52,2Sex Ratio (per 100 female) 2018 100,3 99,8 102,3 99,3Human Develop. Index (Rank among 189 countries) 2017 182 ... … …Popul. Living Below $ 1.90 a Day (% of Population) 2007-2017 49,7 ... 11,9 0,7
Demographic Indicators
Population Growth Rate - Total (%) 2018 3,1 2,5 1,2 0,5Population Growth Rate - Urban (%) 2018 5,0 3,6 2,3 0,7Population < 15 years (%) 2018 47,5 40,6 27,5 16,5Population 15-24 years (%) 2018 19,5 19,2 16,3 11,7Population >= 65 years (%) 2018 2,5 3,5 7,2 18,0Dependency Ratio (%) 2018 98,7 79,2 53,2 52,8Female Population 15-49 years (% of total population) 2018 22,2 24,1 25,4 22,2Life Expectancy at Birth - Total (years) 2018 58,9 63,1 67,1 81,3Life Expectancy at Birth - Female (years) 2018 59,7 64,9 69,2 83,8Crude Birth Rate (per 1,000) 2018 41,5 33,4 26,4 10,9Crude Death Rate (per 1,000) 2018 9,7 8,3 7,7 8,8Infant Mortality Rate (per 1,000) 2017 65,8 47,7 32,0 4,6Child Mortality Rate (per 1,000) 2017 106,0 68,6 42,8 5,4Total Fertility Rate (per woman) 2018 5,9 4,4 3,5 1,7Maternal Mortality Rate (per 100,000) 2015 587,0 444,1 237,0 10,0Women Using Contraception (%) 2018 15,0 38,3 61,8 …
Health & Nutrition Indicators
Physicians (per 100,000 people) 2010-2016 8,5 33,6 117,8 300,8Nurses and midwives (per 100,000 people) 2010-2016 44,3 123,3 232,6 868,4Births attended by Trained Health Personnel (%) 2010-2017 43,7 61,7 78,3 99,0Access to Safe Water (% of Population) 2015 77,0 71,6 89,4 99,5Access to Sanitation (% of Population) 2015 24,7 39,4 61,5 99,4Percent. of Adults (aged 15-49) Living with HIV/AIDS 2017 1,2 3,4 1,1 …Incidence of Tuberculosis (per 100,000) 2016 56,0 221,7 163,0 12,0Child Immunization Against Tuberculosis (%) 2017 73,0 82,1 84,9 95,8Child Immunization Against Measles (%) 2017 61,0 74,4 84,0 93,7Underweight Children (% of children under 5 years) 2010-2016 25,0 17,5 15,0 0,9Prevalence of stunding 2010-2016 30,4 34,0 24,6 2,5Prevalence of undernourishment (% of pop.) 2016 6, 18,5 12,4 2,7Public Expenditure on Health (as % of GDP) 2014 1,6 2,6 3,0 7,7
Education Indicators
Gross Enrolment Ratio (%)
Primary School - Total 2010-2017 80,1 99,5 102,8 102,6 Primary School - Female 2010-2017 75,6 97,4 102,0 102,5 Secondary School - Total 2010-2017 41,5 51,9 59,5 108,5 Secondary School - Female 2010-2017 37,0 49,5 57,9 108,3Primary School Female Teaching Staff (% of Total) 2010-2017 30,4 48,7 53,0 81,5Adult literacy Rate - Total (%) 2010-2017 33,1 65,5 73,1 ...Adult literacy Rate - Male (%) 2010-2017 45,1 77,0 79,1 ...Adult literacy Rate - Female (%) 2010-2017 22,2 62,6 67,2 ...Percentage of GDP Spent on Education 2010-2015 3,8 4,9 4,1 5,2
Environmental Indicators
Land Use (Arable Land as % of Total Land Area) 2016 5,3 8,0 11,3 10,4Agricultural Land (as % of land area) 2016 33,8 38,2 37,8 36,5Forest (As % of Land Area) 2016 3,8 22,0 32,6 27,6Per Capita CO2 Emissions (metric tons) 2014 0,1 1,1 3,5 11,0
Sources : AfDB Statistics Department Databases; World Bank: World Development Indicators; last update :
UNAIDS; UNSD; WHO, UNICEF, UNDP; Country Reports.
Note : n.a. : Not Applicable ; … : Data Not Available. * Labor force participation rate, total (% of total population ages 15+)
** Labor force participation rate, female (% of female population ages 15+)
COMPARATIVE SOCIO-ECONOMIC INDICATORS
Mali
Febuary 2019
0
20
40
60
80
100
120
140
200
0
200
7
201
1
201
2
201
3
201
4
201
5
201
6
201
7
Infant Mortality Rate( Per 1000 )
M al i A fr i ca
0
500
1000
1500
2000
2500
200
0
200
7
201
1
201
2
201
3
201
4
201
5
201
6
201
7
GNI Per Capita US $
M al i A fr i ca
0,0
0,5
1,0
1,5
2,0
2,5
3,0
3,5
4,0
20
00
20
07
20
12
20
13
20
14
20
15
20
16
20
17
20
18
Population Growth Rate (%)
M al i A fr ic a
01020304050607080
200
0
200
7
201
2
201
3
201
4
201
5
201
6
201
7
201
8
Life Expectancy at Birth (years)
M al i A fr i ca
XXIII
Annex 16: Mali: Country Fiduciary Risk Assessment (CFRA)
I- EXECUTIVE SUMMARY
The African Development Bank Group, in carrying out its activities and in accordance with its mandate,
is facing a number of risks, including fiduciary risk. The latter may be considered as the risk that the funds
allocated by the Bank to various institutions (public or private): (i) are not used for the goal and purposes
for which they were allocated; and (ii) are not used effectively and efficiently. Consequently, the
projects/programmes could be endangered if mitigation measures are not identified and implemented.
This justifies that all AfDB interventions should be subject to a fiduciary risk assessment to: (i) measure
the level of risk the Bank will have to face, and (ii) identify appropriate mitigation measures. The fiduciary
risk will be reduced with, on the one hand, the Bank’s support and assistance to its Regional Member
Countries (RMC) and, on the other hand, a robust public financial management system.
The objectives of our intervention in this exercise are, among others, to: (i) gain sufficient understanding
of fiduciary risks in the use of the country’s public financial management system; (ii) identify the
measures that the Bank and/or Country should consider for increased use of the public financial
management system through mitigation of potential identified risks; and (iii) integrate a coherent fiduciary
strategy into the CSP from previous analyses.
Our fiduciary risk assessment is based primarily on existing and available diagnostics on Mali’s public
financial management system, including: (i) the latest assessment of Mali’s public financial management
system (2016 PEFA); (ii) Mali’s Public Financial Management Reform Plan (2017-2021 PREM); (iii) the
Strategic Framework for Economic Recovery and Sustainable Development (CREDD); and (iv) the 2015
Action Plan for Improving the Business Climate. These assessments show progress, notably thanks to the
establishment of certain WAEMU Directives and the strengthening of legal instruments on external
control bodies: the Office of the Auditor General (BVG) and the Accounts Bench of the Supreme Court
(SC-CS). In addition, account has been taken of the operationalisation of the Central Office for Combating
Illicit Enrichment. Internal control over non-salary expenditure remains unsatisfactory and discrepancies
are observed between existing legal instruments (standards) and their effective implementation
(practices). Persistent weaknesses in the area of accounting, information recording and financial reporting
limit the positive developments in external auditing. They also limit the scope of improvements in policy
budgeting. Budget and financial information needed for analysis and decision remains incomplete. The
production of quality budget information is hampered by the lack of feedback from the computerised
system managed by the General Directorate of Treasury and Accounts, to the database managed by the
General Directorate of Budget. These results have an adverse impact on the credibility of the budget.
The fiduciary risk as a whole remains substantial, despite the progress noted and reported above. Ongoing
reforms, however, maintain the national public financial management system on a good trajectory.
XXIV
Summary Table of the Fiduciary Risk Assessment
Element Indicator
Average for
Capacity
Building
Initial Risk Assessment Mitigating measures
Residual risk
assessment
(after mitigation)
1. Budget
The capacity of the budget subsystem is
sufficient for budget planning (preparation) 2.20 Moderate
Continue to implement PFM improvement
recommendations Low
The capacity of the budget subsystem is
sufficient for budgetary control 1.82 Moderate
Continue to implement PFM improvement
recommendations Low
2. Cash flow
The capacity of the cash flow subsystem is
sufficient for the management of resource
flows and disbursements of aid funds
2.25 Moderate
Maintain the treasury committee and link all
remaining accounts to the CUT Low
The single treasury account is an appropriate
and reliable means of administering aid
funds.
1 Substantial
Adopt the CUT as the only means of using
government funds. Moderate
3. Accounting
and financial
reporting
The capacity of the accounting subsystem is
sufficient to record all transactions and serve
as a basis for timely and comprehensive
financial reporting.
1.75
Moderate
Improve the quality of financial statements
and shorten production times Moderate
Financial management information systems
are sufficiently flexible to meet specific
reporting requirements and are governed by
procedures to ensure compliance with
prescribed deadlines and the quality of
information produced.
0 High
Enter information from all TFP-funded
projects into SIGD.
Moderate
The financial accounting subsystem has an
integrated fixed assets module for the
appropriate recording and control of assets
acquired.
1.40 Substantial
Systematically physically check stocks
internally
Moderate
The accounting subsystem maintains up-to-
date records on the country’s loans 1.33 Substantial
Make debt information by source/currency
available to the public Moderate
The accounting systems are protected against
deliberate manipulation of data and/or
accidental loss or corruption of data
1.40 Substantial
Establish a disaster recovery plan and update
programmes and applications
Moderate
CPI Risk Assessment 32/100; 116th/170 countries ranked
XXV
Element Indicator
Average for
Capacity
Building
Initial Risk Assessment Mitigating measures
Residual risk
assessment
(after mitigation)
4. Internal
audit
The capacity of the internal audit subsystem
is sufficient.
1.77 Moderate
Clearly define the notion of conflict of interest
in manuals and distribute them to the staff
concerned
Low
Mechanisms for competitive bidding,
optimal use of resources and control of
procurement are appropriate.
2. 33 Moderate
Justify all use of less competitive procurement
methods
Low
The capacity of the internal audit function is
sufficient 1.33 Moderate
Implementation of the National Internal
Control Strategy (SNCI) Low
5. External
audit
The ISC has the degree of "indépendence"
required to enable it to effectively carry out
its missions.
1.5 Substantial
Strengthening the Accounts Section of the
Supreme Court
Moderate
The ISC has the required capacity to fulfill
its audit mission. 0 High
Strengthen the Accounts Section of the
Supreme Court
Moderate
OVERALL RISK ASSESSMENT 1.43 Substantial Moderate
Risk assessment
Less than 0.75 High risk
Between 0.76 and 1.50 Substantial risk
Between 1.51 and 2.50 Moderate risk
Between 2.51 and 3.00 Low risk
XXVI
II- DETAILED RISK ANALYSIS
The fiduciary risk assessment of the public financial management system is based on the risk
assessment of each component of this system as follows:
2.1. Budget
In general, the Malian State budget remained credible following the 2016 PEFA assessment,
despite a slight deterioration of ratings used in the calculation due to the 2012 political and
security crisis. Coverage and transparency have also improved in recent years compared to the
information contained in the documents accompanying the 2016 Finance Bill, in order to
facilitate understanding and parliamentary control. The completeness and transparency of the
budget have been improved relative to criteria defined in the PEFA methodology. In accordance
with WAEMU Directives, the country is the process of adopting the programme budget
methodology. The annual budget preparation process has evolved favourably. It allows for the
drafting of the Finance Bill within the time allowed to Government for referral to the National
Assembly. In addition, a computerised cash flow management system has been established to
improve budget execution control capacity. Expenditure control rules and procedures are well
estabished. They are relatively efficient for salary expenditure, but relatively insufficient for
non-salary expenditure. The means of (internal) control services should be fixed in relation to
the scope of their missions. As a result of the foregoing, the fiduciary risk of this component
was considered moderate.
2.2. Cash
Cash management is ensured by a (cash) commission chaired by the Minister of the Economy
and Finance and bringing together all assessment and recovery services, on the one hand, and
public expenditure services, on the other hand. The Central Treasury Accounting Agency
(ACCT) is responsible for centralising and consolidating the information required for
management of the State treasury. At the level of predictability, budget execution is satisfactory
and cash-flow is monitored for some time now. Expenditure commitment ceilings for
Ministries, Directorates and Agencies are, therefore, regularly provided through Appropriation
Orders each quarter. These appropriations take into account the cash position prepared by the
National Directorate of Treasury and Public Accounting. Ministries are informed of their
commitment ceilings three months in advance. For the Bamako accounting stations (90% of
resources), the consolidation of cash balances is done daily and weekly. Consolidation of cash
balances for all accounting stations is monthly. It should be noted, however, that there are no
official estimates of outstanding external or domestic unsecured debt. In addition, the State still
has many accounts in commercial banks, contrary to the principle of the single treasury account
enacted by the 2009 WAEMU Directive. The fiduciary risk on this component was
considered substantial.
2.3. Accounting and Reporting
Budget execution reports are regular, complete and of quality. The operations carried out during
a given month are reconciled no later than the end of the following month, under the signature
of ACCT. Ordinary current account reconciliation at the BCEAO is done on a daily basis. All
transfer orders and cheques issued are recorded in the bank monitoring registers opened by bank
account. The date, the name of the beneficiary and the cheque amount are entered in the tracking
register and, every day, the bank statements are reconciled to these registers. Deviations are
sought and corrections requested at the various banks. As regards the adjustments of accounts
and advances, delays are longer. Indeed, reconciliation and adjustment of suspense and advance
accounts are done every year with a delay of more than two months and these suspense accounts
XXVII
remain uncleared. Schools and health centres have budget lines in the budget of the State and
local authorities. Their expenses are therefore included in the management account of the State
principal accountant to which the school or health centre is attached. Consequently, when these
structures receive the resources in kind, there is no stores accounting or global monitoring
system for these resources. The structures in question fill in sheets indicating the number and
value of what has been transmitted to them, but these sheets are neither consolidated in a central
register nor published. The computer system used by the Treasury also allows for comparisons
with the initial budget based on all four classifications used for the preparation and monitoring
of the budget. A quarterly budget execution report is also published on the website of the
Ministry of the Economy and Finance containing as an annex consolidated figures based on
administrative and economic classification only, making it possible to compare budgetary
allocations, committed appropriations and liquidated appropriations. Reports do not provide
information on actual payments, nor on the extent of outstanding commitments. Thus, the
fiduciary risk on this component was considered substantial.
2.4. Internal Audit
At the level of the internal control and audit system, control bodies are operational. Internal
audits are carried out by the General Directorate of Financial Control (DGCF), the Inspectorate
of Finance (IF) and Ministerial Inspectorates. The reports prepared for all the entities controlled
are forwarded to MEF, the Prime Minister’s Office and the Presidency. Internal control is
carried out: (i) ex ante by the DNCF, which carries out exhaustive control of budgetary and
accounting regularity on all expenditure of the State budget, Regional Authorities and Public
Establishments; (ii) ex poste by the General Control of Public Services, the Inspectorate of
Finance and Ministerial Inspectorates. Ex ante control is strengthened by the PRED5 computer
application, which integrates the three phases of the expenditure cycle (commitment, clearance
and authorisation). This application prevents you from incurring an expense if credit is not
available. Systematically, all State structures with the exception of Public Establishments, are
subject to a year-end audit on the control of revenue and expenditure collected as at 31
December and sanctioned by a report sent to the controlled structures, MEF and the Support
Unit for Administrative Control Structures (CASCA). Procedural Manuals are prepared, which
allows for a good implementation of procedures and many training sessions on internal control
have been carried out within the framework of PAGAM/GFP II. In addition, the redundancy
that has for long characterised internal control in public financial management in Mali has been
reduced, since the General Control of Public Services plays the role of coordinator of
interventions, although the CGSP and the Inspectorate of Finance happened to carry out a field
mission at the same time to verify accounting elements. The fiduciary risk was considered
moderate.
2.5. External Control
Mali has two external control bodies: the Office of the Auditor General (BVG), which carries
out mainly targeted audits and the Accounts Bench (SC) of the Supreme Court (CS), which
focuses mainly on auditing the administrative and management accounts of the State. Its audit
reports and the corresponding compliance certificates on the execution of the finance laws are
forwarded to Parliament, but almost a year late compared to the legal deadlines, mainly because
of the time taken by MEF to respond to the requests addressed to it by the SC-CS. Nevertheless,
the Accounts Section quickly presents its audit reports to Parliament, once the answers have
been provided by the Ministry of Finance. The SC-CS does not have sufficient human and
material resources to effectively fulfill the tasks assigned to it. Despite this handicap, the SC-
CS since 2012 carries out judicial review, notably the accelerated jurisdictional clearance of the
accounts from 1960 to 2008 and the regular judgement of the accounts of 2009 and 2010. Its
XXVIII
legal framework complies with the "ISC Independence" standard defined by INTOSAI. The
SC-CS audit reports of the execution of the finance laws are not published before the adoption
of the settlement law by Parliament and the latter does not make recommendations on the basis
of these reports. From the foregoing, the fiduciary risk was considered high.
III- GOVERNANCE AND CORRUPTION
Mali’s public financial management system has improved following the latest diagnostic
studies. However, there are still many challenges. Indeed, the country shows modest
performance in terms of governance and the fight against corruption. In 2017, the country was
ranked 122nd out of 180, according to Transparency International’s Corruption Perception
Index (CPI), with a total score of 31 points out of 100. In addition, the overall score given to
Mali by the Bank Group in the Country Policy and Institutional Assessment (CPIA) was 3.7 in
2016.
The legal and regulatory framework of Mali’s national procurement system is governed by
Decree No. 2015-0604/P-RM of 25 September 2015 on the Code of Public Contracts and Public
Service Delegations (and its subsequent instruments). The Bank carried out several assessments
of Mali’s public procurement procedures (2010, 2013 and 2016) that concerned the assessment
of the Public Procurement Code (PPC), national standard bidding documents (NSBD) and the
fiduciary risks associated with internal control mechanisms. This evaluation showed that these
procedures can be used in some sectors for AfDB-financed contracts in Mali, and that NSBDs,
broadly similar to those of the Bank, can also be used, since the said standard documents result
from the transposition of WAEMU regional standard procurement documents into Malian law.
This situation leads to an inherent level of risk considered "substantial" in the context of the use
of national systems. However, there is an action plan to improve public financial management
and the business climate, supported by government and all technical and financial partners. This
plan is under implementation and if it continues to be correctly implemented, the residual risk
could be reduced over the long term to a "moderate" level.
IV- CONCLUSION OF THE FIDUCIARY RISK ASSESSMENT
Finally, following recent assessments of the public financial management system, Mali’s public
financial management system has had encouraging results.
However, the overall fiduciary risk remains significant on the basis of available fiduciary
assessments. The Bank, in its strategy, should continue to provide institutional support targeted
primarily on external and internal control and coupled with other types of intervention by the
Institution. Such institutional support should allow for a substantial strengthening of the
shortcomings previously highlighted and thus enable the Bank, before the end of the period
covered by this strategy, after evaluation, to test the public expenditure chain through a pilot
project, in accordance with the Paris Declaration on the use of national systems.
XXIX
V- RISK MITIGATION MEASURES AND THE BANK’S FIDUCIARY
STRATEGY
5.1. Risk Mitigation Measures
After the above assessment, certain mitigation measures should be envisaged. These are:
1- Capacity building for the Accounts Bench of the Supreme Court to enable it to fully
carry out its missions;
2- Submission to the Accounts Bench, by government, of settlement laws within legal
deadlines, in particular, no later than 31 July following the closing of each fiscal year ;
3- The effective implementation of the National Internal Control Strategy.
5.2. The Bank’s Fiduciary Strategy
From the foregoing, it is envisaged to implement the following fiduciary strategy in Mali:
Level of use of the national public financial management system: In accordance with the
provisions of the Paris Delaration and the Accra Action Plan on aid effectiveness, the decision
by the Bank to use the components of the National Public Financial Management System was
examined on the basis of the assessment of the said system (see Fiduciary risks and mitigation
measures), guidelines, practices, risk appetite and tolerances by the Bank and other factors such
as perception of the level of governance and corruption. The review revealed a significant
fiduciary risk.
While recognising the progress made in the country, and that an approach based exclusively on
AfDB procedures and parallel systems would not guarantee aid effectivenessand the
strengthening of the national system, the Bank will favour an approach adapted to the type of
operation envisaged, focused on support for public financial reforms. This may be revised
during the period, if necessary. Thus:
Budget support using the National Public Financial System, will have to continue by
incorporating objectives and conditionalities that will accelerate the implementation of
fiduciary risk mitigation measures;
Before the end of the period covered by this strategy, the Bank will, after evaluation,
test the public expenditure chain through a pilot project that it will finance through this
circuit;
The Bank must engage with Government to support the continuation of reforms of the
national public financial management system. Since strengthening national institutions
is the most effective and sustainable solution to address the challenges of governance
and to mitigate the fiduciary risks to public funds, it is important that, in its strategy,
the Bank supports national reform efforts. This commitment will have to materialise in
the form of institutional support targeted primarily on internal and external control and
coupled with other types of intervention by the Institution.
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