Country report Mali

Economic Overview

Regardless of the security emergency, Mali’s economy has stayed strong. In 2019, the nation recorded 5% genuine GDP development (driven by great gold and cotton creation), a spending deficiency of 3.1% of GDP, and 0.4% expansion. Open obligation was 35.5% of GDP toward the finish of 2018. 

In any case, the economy remains underindustrialized, and the assembling business battles to create. This prompts a gigantic requirement for imports and to a current record in shortfall (5.4% of GDP in 2019). On the interest side, speculation is especially low, at 9.5% of GDP for the private part and 8.7% for the open division. 

Tax revenue is weak (14.3% of GDP), below  the ECOWAS standard of 20%. Analysis of public debt sustainability in May 2018 showed that the danger of Mali’s obligation overhang was moderate. Mali’s obligation strategy, with the IMF’s Extended Credit Facility, is reasonable. Be that as it may, the development of local obligation, with 59% of it falling due more than 2019–21, is of incredible concern.

Main sectors of industry

This statistic shows the distribution of the gross domestic product (GDP) across economic sectors in Mali from 2008 to 2018. In 2018, agriculture contributed around 38.7 percent to the GDP of Mali, 19.11 percent came from the industry and 36.88 percent from the services sector.

Industry is turning into a critical segment of the economy comprising of for the most part minor customer merchandise creation for neighborhood use and food handling, development, and phosphate and gold mining. Characteristic assets additionally incorporate kaolin, salt, limestone, uranium, and hydropower. High quality digging and searching for gold and precious stones has been drilled in the south-west of the nation for many years. 

Assembling remains nearly immaterial, having declined all through the 1980s and representing a normal 3 percent of the GDP towards the century’s end. From the 1960s, wasteful parastatals created essential shopper merchandise, and the private part liked to put resources into exchange. The part was additionally impeded by escalated rivalry from Côte d’Ivoire and by a surge of modest pirated customer merchandise from Guinea and Nigeria in the years going before the 1994 degrading of the CFA franc. 

Since the cheapening, endeavors to pull in assembling venture have had little achievement, despite the fact that there have been indications of a move towards assembling among the main nearby business families. The materials division has given indications of recovery, yet it despite everything faces firm rivalry from ventures in neighboring nations. A huge disadvantage to interest in the assembling area is the higher creation costs in Mali than in neighboring nations, inferable from obsolete gear and immature foundation.

Taxation for businesses

Value Added Tax (VAT)

  • 18% (standard rate)
  • Reduced rate of 5% of computer and agricultural material
  • 17% on financial transactions

Company Tax

  • Corporate tax: 35%
  • Synthetic tax regime (companies with an annual turnover less than XOF 30 million): Between XOF 14,700 and 1.2 million
  • Alternative minimum tax (in case of loss or deficit): 1% of turnover

Withholding Taxes

  • Dividends: 10%, Interests:  9/13/15/18%, Royalties :15%.
  • Social Security Contributions Paid By Employers : 35%

Investing in Mali

As per UNCTAD’s 2020 World Investment Report, FDI inflows expanded in 2019 to USD 494 million, contrasted with USD 467 million one year sooner. The stock of FDI has been developing year by year and was evaluated at USD 5 billion of every 2019. Most outside direct ventures are arranged towards mining (gold abuse), oil extraction, material industry, budgetary intermediation, media transmission and foundation. Mali’s driving speculators are the UK, Australia, Canada, South Africa and Ivory Coast (information BCEAO). 

Mali benefits from considerable natural assets, for example, gold, bauxite and iron, and is Africa’s primary cotton provider. All in all, the law treats outside and local venture similarly, yet state-claimed undertakings twist the economy and cutoff points on proprietorship in the mining and media area continue (90% remote possession limit in the mining segment, half in media). As of late, the administration of Mali has set up FDI advancement strategies planned for empowering seriousness and private area support in practically all segments.