MALI: An attractive investment destination
Why is Mali an attractive investment destination? The country has … The right § Key competitive conditions advantages Preferential § A favorable investment Opportunities in access to key climate key sectors markets § Viable investment Mali advantages opportunities § Great potential Trusted by Business-friendly investors government Competitive investment and mining codes
Reasons to invest in Mali REASON #1 The right conditions
A competitive investment climate Mali at a glance Strong economic growth The growth in middle class incomes and consumption • Rapid growth of household consumption: +104% between 2005 and 2015 (constant 2005 USD) • Spectacular increase in mobile phone coverage and penetration: from 20% in 2008 to 85% en 2015, reaching 10 million subscribers Commodities • Mining: 3 rd gold producer in Africa with 50 tons/year, Mali also boasts significant reserves of iron (2 million tons), bauxite (1.2 million tons), uranium Area: 1 241 238 Km² (5 thousand tons), as well as phosphates, copper, lead, zinc, lithium, • limestone, etc. Population: 17,963,216 • • Oil & gas: Initial surveys reveal 5 high potential basins, laws have recently been revised to encourage exploration Population growth: 3.6% • • Agriculture: 39.5% of GDP, 2 nd cotton producer in Africa with over 500,000 GDP growth (2015): 5.4% • tons/year Currency: Franc CFA (XOF) • 1 Euro = 656 FCFA (fixed parity) Official language: French • 4 Source: INSTAT, PEA, World Bank 2015
Strategic location at the heart of West Africa and robust infrastructure Telecommunications network: Extensive national mobile network coverage by ORANGE and MALITEL; fiber optic network in place in much of the South and progressing North Taoudenni Road network of nearly 20,000 km, of which nearly Algeria, Libya 14,000 are paved: Connects Mali to the capitals of all 7 neighbouring Tessalit countries and to 7 maritime ports River transportation over 1500 km: Rail link to Dakar: Available from Koulikoro to Gao, serving Ségou, 642 km railway between Bamako and Dakar currently Mopti, Diré, Tombouctou and Bourem in undergoing rehabilitation by the Chinese between Gao Timbuktu Mauritania Nioro Mopti Niger Kayes Niono Senegal Port of Dakar Segou San Koulikoro Power grid: Kita Considered one of the most reliable in the region Bamako Koutiala (Global Competitiveness Index 2015, electricity supply Guinea Burkina Faso indicator) Port of Conakry Sikasso Côte d’Ivoire Ports of Abidjan and San Pedro, Dense air transport network: Tema (Ghana) , Lomé (Togo) and Cotonou (Benin) 13 airports of which 6 are international (marked) 5
Competitive costs for investors Labour costs are competitive globally Power prices on par with the region Minimum wage Power tariffs (USD/month) (medium voltage, USD/kwh) Nigeria Ghana 0.08 45 Niger 0.08 Mali 52 Guinea 0.12 Burkina Faso 53 Ghana 0.14 Kenya 54 Togo 0.15 Benin 66 Benin 0.15 Senegal 79 Cote d'Ivoire 0.16 Cote d'Ivoire 100 Mali 0.19 China 138 Senegal 0.20 Maroc 155 Burkina Faso 0.25 South Africa 166 Gambia 0.27 Brazil Liberia 229 0.34 6 Source: www.wageindicator.org; www.mays-mouissi.com, UPDEA 2009
Business quickly picking up, security fundamentals in place • Comprehensive peace agreement signed in May 2015 with key rebel groups following a multilateral process, a year after the 2012 uprising of rebels from the North • Large UN peace keeping deployment in support of national defense forces • Risk level is low in the South, where most investment opportunities are located, and security was further reinforced following the Bamako attacks. Most current incidents are isolated attacks taking place in the North, over 1200km away from the capital Bamako • Business has very quickly bounced following initial unrest and the new election, as shown by the new business registration data Registration of new value-adding companies (CFA Millions) The international community 160 says… 140 120 100 80 60 40 “The uprising doesn’t appear to have deterred investors too 20 much.” 0 KPMG Africa, in reference to the 2012-2013 political crisis 2010 2011 2012 2013 2014 2015 7 Source: API Mali, media articles
Reasons to invest in Mali REASON #2 Preferential access to key markets
Access to key markets WEST AFRICA Access to over 300 million consumers within the region Mali is among the 15 member States of the Economic Community of West African States ( ECOWAS ) It is also one of the 8 member States of the West African Economic and Monetary Union ( WAEMU ) Tax-free and quota-free export of over 6,400 products to the USA USA Through the African Growth and Opportunity Act ( AGOA ), the USA drops import taxes over products exported by Mali (6,400 products exempted) Unlimited access to the EU market EUROPE The EU and West African countries have signed the Accord de Partenariat Economique/Economic Partnership Agreement ( APE - EU ) in 2014 APE-EU results in tax free exports of Malian products towards the EU and stronger protection for EU investors 9 Source: API Mali
Reasons to invest in Mali REASON #3 Business- friendly government
Committed to economic growth through private sector development • Progressive liberalization of the economy since the 1980s and significant privatization of key sectors : telecommunications, energy, transport, agriculture, etc. • Sustained reform momentum to improve the investment climate in Mali: Over the last decade, repeatedly named one of the fastest reforming countries in the region in the World Bank Group’s Doing Business report Mali consistently ahead in regional doing business reform rankings (WAEMU region) Distance to Frontier: Mali Progress towards global best practice investment climate Ivory Coast Burkina Faso Togo Senegal Benin Niger Guinea-Bissau 2010 2011 2012 2013 2014 2015 2016 11 Source: API Mali, www.doingbusiness.org
Dedicated institutions to support the private sector Investment Promotion Agency (API-Mali) Employers’ Organization (CNPM) www.apimali.gov.ml www.cnpmali.org The Investment promotion agency (API-MALI) is in Started in 1980, the Employers’ organization of Mali • • charge of attracting, informing, and supporting private (CNPM) has grown into a very dynamic and investors representative private sector organization • Assists investors at each step in the investment process • Represents the interests of the private sector in dialogue with the Government of Mali • Hosts an one-stop-shop for business registration: simple and transparent process for registering a new business Includes 7 sub-national branches (Koulikoro, Sikasso, • within 72 hours Ségou, Mopti, Gao, Tombouctou and Kayes) Chamber of Commerce (CCIM) Commercial Arbitration Court (CECAM) www.cci.ml www.cecam-mali.com The Chamber of commerce of Mali (CCIM) was first The Commercial arbitration court of Mali (CECAM) has • • created in 1906 been successfully operating since 2004 within the Chamber of Commerce (CCIM) • CCIM runs as a modern, independent chamber of commerce with deep roots within the Malian private The CECAM enriches Mali’s judicial system by providing • sector all private sector operators in Mali with an alternative dispute resolution mechanism CCIM hosts Mali’s commercial arbitration court • (CECAM) 12 Source: API Mali
Reasons to invest in Mali REASON #4 Competitive investment and mining codes
Protection and guarantees for investors • Non-Discrimination : Foreign investors have the same rights and privileges as local investors • Repatriation of Funds : Full repatriation of capital and profits by individuals and corporations • Foreign Ownership : Company capital may be 100% foreign • Protection against expropriation: Article 7 of the investment code • Dispute Resolution : Mali is a member of the International Centre for Dispute Resolution (CIRDI) and the Communal Court for Justice and Arbitration (CCJA) of the Organization for the Harmonization of the Business Environment in Africa (OHADA) • Investment Guarantee : Investments are guaranteed under Article 15 of the convention establishing the Multilateral Investment Guarantee Agency (MIGA) 14 Source: API Mali
Tax incentives Summary of tax incentives Investment Customs tax VAT tax Corporate tax Minimum flat Full tax Regime amount (USD) holiday holiday holiday (25%) tax holiday exemption 25,000 - 500,000 A 3 years 3 years 7 years N/A N/A 500,000 - B 3 years 3 years 10 years 8 years N/A 2,000,000 > 2,000,000 C 3 years 3 years 15 years 10 years N/A > 25,000, 80% D 30 years export Additional incentives are available for investors in special economic zones, and for companies adding value to local raw materials or investing in technological innovation 15 Source: API Mali
Reasons to invest in Mali REASON #5 Trusted by investors
A trusted investment destination – e e l p v i m t s a u S a h x e t o n 17 Source: API Mali
Reasons to invest in Mali REASON #6 Opportunities in key sectors
Key sector opportunities Agribusiness 19
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