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Mali

Author(s):
International Monetary Fund
Published Date:
January 1997
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MALI - Basic Data 1/
Area, population, and GDP per capita
Area1,240,190 square kilometers
Population (1995)9.2 million
Growth rate3.2 percent
GDP per capita (1995)US$268

Data may not add up owing to rounding.

Excluding SDR allocations and medium- and long-term liabilities.

19911992199319941995
Est.
(In billions of CFA francs)
Gross domestic Product at current prices
Total (at current prices)682.1753.5755.11,028.71,231.3
(In percent of nominal GDP)
Consumption93.195.693.693.389.9
Gross domestic savings6.94.46.46.710.1
Investment22.821.921.926.526.0
Resource gap-15.9-17.5-15.5-19.8-15.9
(In percent of real GDP)
Primary sector46.749.346.348.549.7
Secondary sector16.816.217.216.917.1
Tertiary sector36.534.536.534.632.2
(Annual change in percent)
Real GDP-0.98.4-2.42.36.4
Nominal GDP1.110.50.236.219.7
Prices
GDP deflator2.11.92.633.212.5
Index of consumer prices in Bamako1.5-5.9-0.624.812.4
(In billions of CFA francs)
Government finance
Revenue109.6100.7104.7138.9177.3
Budgetary revenue96.389.194.0126.0160.7
Annexed budgets and special funds13.311.610.712.916.6
Grants56.253.642.097.892.4
Expenditure192.3183.4177.3280.1306.9
Budgetary expenditure169.8161.8161.2268.4291.0
Of which: externally
financed investment(64.5)(60.0)(58:5)(115.0)(133.5)
Annexed budgets and special funds11.811.010.511.714.5
Extrabudgetary2.38.95.6
Reconstruction expenditure8.41.7
Overall deficit, commitment basis
Excluding grants-82.8-82.7-72.6-141.2-129.0
Including grants-26.6-29.1-30.6-43.4-36.6
Overall deficit, cash basis-30.1-24.2-22.5-73.1-50.7
Financing (net)30.124.222.5-73.1-50.7
External (net)42.232.825.576.790.9
Banking system (net)-10.8-5.4-1.3-4.539.6
Other-1.3-3.2-1.70.9-0.6
Monetary survey (end-of-year)
Net foreign assets 2/65.467.876.8204.3240.6
Net domestic assets95.095.699.3138.8145.3
Credit to the government (net)23.420.728.349.216.6
Credit to the economy63.368.771.483.1131.6
Other items (net)8.36.1-0.46.5-1.3
Medium- and long-term
External liabilities-8.4-6.2-5.7-11.1-8.9
Money and quasi-money152.0157.2170.4234.8283.5
(In millions of SDRs)
Balance of payments
Exports, f.o.b.271.1257.1250.2232.7310.0
Imports, c.i.f.-499.3-510.8-485.6-439.4-510.3
Services (net)-85.0-128.3-78.5-82.3-100.9
Of which: interest(-26.4)(-29.2)(-24.2)(-27.5)(-21.5)
Private transfers (net)51.052.566.959.263.1
Current account
(excluding grants)-262.1-329.6-247.0-229.7-238.0
Unrequited public transfers
(net)232.2254.7170.2172.2147.1
Current account
(including grants)-30.0-74.8-76.7-57.5-90.9
Capital (net)41.93.0-17.764.380.7
Official capital (net)47.79.1-12.931.260.9
Disbursements127.8103.876.7115.3145.4
Amortization-80.1-94.7-89.6-84.1-84.5
Private capital (net)-5.7-6.2-4.833.019.8
Debt relief61.778.977.565.259.2
Of which: debt moratoria and debt
under negotiation(60.1)(70.8)(62.7)(53.5)(53.5)
Errors and omissions27.5-12.620.813.6-5.5
Overall balance101.1-5.63.885.543.5
Foreign assets (net)
(increases -)-100.6-5.4-17.2-60.6-48.0
Of which: IMF (net)(-6.9)(5.6)(3.3)(22.2)(25.0)
Revaluation adjustment-3.41.10.84.5
Changes in payments arrears
Reduction (-)2.99.912.6-24.9
Official foreign reserves and
liabilities (end-of-year)
Gross reserves223.3223.9242.0272.5346.9
Gross liabilities57.856.554.384.4106.3

Data may not add up owing to rounding.

Excluding SDR allocations and medium- and long-term liabilities.

Data may not add up owing to rounding.

Excluding SDR allocations and medium- and long-term liabilities.

MALI - Basic Data 1/
19911992199319941995
Est.
(In millions of SDRs)
Outstanding external debt
(end-of-period)1,758.11,844.11,876.02,020.61,848.5
Of which: Fund credit(42.0)(47.6)(51.4)(74.1)(99.0)
Trust Fund loans(—)(—)(—)(—)(—)
(In percent) 2/
Debt service ratio
Scheduled debt service 2/16.618.518.823.115.8
Excluding the Fund13.716.316.420.314.2
(CFA francs per SDR and per U.S. dollar)
Exchange rates
Period average
SDR385.9372.7395.3795.0757.1
U.S. dollar282.1264.7283.2555.2499.2
End of period
SDR370.5378.6404.9780.4728.4
U.S. dollar259.0275.3294.8534.6490.0
(1990–100)
Trade-weighted effective
exchange rate index
Nominal98.6102.2103.753.455.3
Real (CPI-based)96.390.988.9055.162.0

Data may not add up owing to rounding.

In percent of exports of goods and nonfactor services; after debt cancellation; before debt relief; excluding debt service due to the People’s Republic of China and Russia.

Data may not add up owing to rounding.

In percent of exports of goods and nonfactor services; after debt cancellation; before debt relief; excluding debt service due to the People’s Republic of China and Russia.

Table.Mali: Selected Social and Demographic Indicators 1/
AreaGross national product (1995)
Total1,240,190 sq. km,Per capitaUS$268
Agricultural26.4 percent of total
Of which: under
irrigation0.7 percent of agricultural land
Population (1995)Population density
9.2 milliona. General density: 7.4 persons per sq. km.
Rate of growth 3.2 percent per annumb. 26.5 persons per sq. km. of agricultural land
Population characteristics (1993)Health
Crude birth rate (per thousand)50.1Population per physician (in thousands)21.2
Crude death rate (per thousand)18.7Population per hospital bed (1970–75 estimate)1,463.0
Life expectancy at birth (years)46.0Infant mortality rate (per thousand live births)157.0
Urban population (percent of total)26.0
Access to safe waterEducation
19881994
In percent of populationEnrollment rates (in percent of school
Total22.748.8age population)
Urban48.0100.0Primary25
Rural17.036.0Secondary7
Pupil-teacher ratio
NutritionPrimary61
Secondary16
Per capita supply of
Calories (per day)2,314
Proteins (grams per day)64
Sources: World Bank, Social Indicators of Development. 1995; and staff estimates.

Average for 1988–93, unless otherwise indicated.

Sources: World Bank, Social Indicators of Development. 1995; and staff estimates.

Average for 1988–93, unless otherwise indicated.

I. Overview of Economic Developments in 1994 and 1995 1/

1. Introduction

Since the devaluation of the CFA franc in January 1994, Mali has experienced a significant pickup in economic activity. 2/ After nearly a decade of economic stagnation, real GDP grew by 2.3 percent in 1994 and by an estimated 6.4 percent in 1995. 3/ The turnaround in economic activity came about as the result of improvements in Mali’s external competitiveness and was most pronounced in export-oriented sectors, and the cotton sector in particular, as well as in import substitution sectors. After an initial correction, the annual rate of domestic price increase fell to 10.5 percent in the last quarter of 1995 from 32.2 percent in the same period in 1994, owing to the containment of labor costs, as well as abundant supplies and relatively stable prices of staple foods during this time period.

Despite the impact of the devaluation on government spending, the overall fiscal deficit was limited to 13.7 percent of GDP in 1994, with government revenue declining by the equivalent of ½ percentage point of GDP and total expenditure rising by about 3½ percentage points. In 1995, the fiscal situation improved significantly as the overall government deficit, on a commitment basis and excluding grants, was reduced by more than 2 percentage points of GDP; revenues increased by 1 percentage point of GDP and expenditures decreased by the equivalent of more than 2 percentage points of GDP.

2. Production and prices

Over the period 1994–95, real GDP grew by 8.8 percent on a cumulative basis, led primarily by strong performances in the primary sector. Agricultural growth, benefiting from favorable climatic conditions as well as enhanced competitiveness, was broadly based: food crops grew by a cumulative 34 percent; livestock production rose by 9.2 percent; and cash crops (primarily cotton) rose by almost 20 percent in 1995, following a 16 percent drop in 1994. In the secondary sector, output grew by 9 percent, thanks to strong gains in construction and public works. The tertiary sector experienced a cumulative 1 percent decline in output; trade and services both experienced output increases, but they were more than offset by a 25 percent drop in public sector services.

Both the expenditure-reducing and switching effects of the devaluation were quite strong over the period 1994–95, as evidenced by the decline in aggregate consumption: both private and government consumption declined by almost 2 percentage points of GDP each. Investment spending rose significantly over this period, from about 22 percent of GDP in 1993 to 26 percent in 1995. Private investment, largely in the gold mining and cotton sectors, rose by almost a full percentage point of GDP, while government investment increased by more than 3 percentage points. Mali’s rising investment expenditure over the 1994–95 period was financed largely by higher domestic savings as well as the increased use of foreign savings.

In the wake of the devaluation, inflation, as measured by the consumer price index for Bamako, peaked at 32 percent on an end-of-period basis in the last quarter of 1994. 1/ The inflation rate declined rapidly over 1995, ending the year at a quarterly rate of 10.5 percent. Since the devaluation, the Malian authorities have endeavored to implement policies designed to contain labor costs. The rapid fall-off in the rate of inflation suggests that, by end-1995, the inflationary impact of the devaluation had largely worked its way through the economy and that the authorities’ strict anti-inflation policies had been largely successful.

3. Fiscal developments

Early in 1994 the authorities introduced a number of measures aimed at increasing government revenue and limiting spending following the devaluation. At the same time, customs duties and certain domestic taxes were reduced to mitigate the impact of the devaluation-induced rise in costs and prices on vulnerable population groups and to lower external protection. The public sector demand management policies contributed to containing the increase in the overall budget deficit resulting from the devaluation. The overall budget deficit (on a commitment basis and excluding grants) rose by 4 percentage points of GDP, to 13.6 percent in 1994. Revenue fell by ½ a percentage point of GDP, to 13.5 percent, largely because of a weakening in customs collections as imports declined and certain customs duties were either reduced or suspended, while expenditures rose by 3½ percentage points, to 27 percent. A pivotal element of Mali’s program was the implementation of a restrained civil service wage policy. On the basis of an agreement between the government and the labor unions representing civil servants, the increase in salaries was limited to 10 percent in April 1994. Subsequently, an additional increase of 5 percent, originally scheduled for January 1995, was granted in October 1994; the resulting budgetary impacts were offset by other budgetary savings, primarily in the area of recruitment. The government’s wage bill was reduced by nearly 13 percent in real terms in 1994. There was no civil service wage increase in 1995, further reducing the real wage bill. Given the wage bargaining system in Mali, where private sector wages closely follow those of the civil service, the government’s wage policy had the effect of minimizing demonstration effects, thus preserving the competitiveness gains stemming from the devaluation.

In 1995 the overall government deficit declined by more than 2 percentage points from 1993, to 10.5 percent of GDP, as revenue rose to 14.4 percent of GDP, while expenditures fell to 24.9 percent of GDP. The strong growth in revenue was partially due to higher nontax receipts, including exceptional receipts from the cotton sector and privatization. Actions taken to improve the tax and customs administrations, reduce tax exemptions, and combat fiscal fraud were also instrumental in strengthening revenue performance. 1/ On the expenditure side, total outlays were kept under strict control, with the government’s restrained wage policy again playing a central role.

4. Monetary and credit developments

Monetary developments in 1994 and 1995 were characterized by a strong recovery in money demand (as money balances were reconstituted in the wake of the devaluation), a strengthening of the net foreign assets position of the banking system, a strong expansion of credit to the private sector, and a substantial reduction of government indebtedness to the banking system.

Credit conditions remained generally tight throughout 1994. Following the devaluation, the Central Bank of West African States (BCEAO) raised the discount rate to 14.5 percent on January 18, 1994, from 10.5 percent. Subsequently, and as inflationary pressures in the region began to abate, credit conditions were progressively eased; the BCEAO’s discount rate was reduced in four steps, reaching 9 percent on January 23, 1995. In 1995, there were two additional cuts in the discount rate: to 8.5 percent on June 5 and further to 7.5 percent on December 26.

Broad money increased by 39 percent in 1994. 2/ After an initially sluggish expansion of bank credit to the economy, private sector credit rose moderately during the last few months of the year, reflecting some recovery in economic activity. In 1995, broad money growth slowed to about 20 percent, net credit to the government contracted significantly, and credit to the economy rose sharply, particularly toward the end of the year.

A source of concern for the monetary authorities in the first half of 1994 was the sharp increase in commercial bank liquidity caused by the reflows of private capital; the improved financial position of, and the resulting demand for credit by, export-oriented enterprises; and the cautious attitude of the banks themselves. However, in the last months of the year, commercial banks utilized part of their excess liquidity to purchase securities, issued by the BCEAO as part of the securitization of the consolidated public debt (CFAF 23.9 billion) assumed by the government in the context of the restructuring of the Malian banking system during the late 1980s. The securitization scheme, developed by the BCEAO, involved the issuance of 12-year securities, redeemable on demand and at par, carrying a tax-exempt interest rate of 5 percent. Similar BCEAO-backed schemes, applicable to government debt issued by other member countries of the West African Economic and Monetary Union (WAEMU), established during the same period enabled Malian banks to purchase an additional CFAF 19.8 billion of securities issued by other WAEMU countries. The expansion of the banks’ credit activities toward the end of the year further contributed to reducing excess liquidity.

In April 1995, the Meridien International Bank Limited (MIBL) was liquidated; its subsidiary, Meridien-BIAO-SA, owned 61.5 percent of the capital of BIAO-Mali, with the remainder being held by the Malian private sector. 1/ As part of the financial shoring up of the bank, renamed Banque Internationale du Mali (BIM) in June 1995, a five-year equity loan of CFAF 3 billion was extended by the government to strengthen its capital base and ensure the observance of prudential ratios established by the regional banking commission. 2/

5. External sector developments

After initially deteriorating over the period immediately following the devaluation, Mali’s external position strengthened significantly in 1995, owing largely to an improvement in external competitiveness. Between the fourth quarter of 1993 and 1995, Mali’s CPI-based real effective exchange rate depreciated by some 27 percent. The current account deficit (excluding official transfers) rose from 12.9 percent of GDP in 1993 to 17.8 percent in 1994, and then declined to 14.6 percent in 1995. The improvement in the current account was due largely to a strong recovery in exports, with export volumes increasing by 1.7 percent and by 24.8 percent in 1994 and 1995, respectively. Mali’s improved competitiveness had a particularly favorable effect on exports of cotton, gold, livestock, and fruits and vegetables. In the cotton sector, which accounts for the largest share of exports, favorable developments in the world price of cotton also contributed to the rebound in the value of cotton exports in both 1994 and 1995. In light of these developments, and given the positive impact of favorable climatic conditions, the volume of cotton fiber exports rose by 36 percent in 1995. The volume of imports declined 4.2 percent in 1994, but rose by almost 10 percent in 1995 along with the recovery in the general level of economic activity and the substantial investments in the gold mining sector during the year.

The services account deteriorated during 1994 and 1995, partly because of the growing demand for services in the gold mining sector. The capital account swung from a small deficit in 1993 into surplus for both 1994 and 1995, reflecting inter alia a significant increase in external financial assistance, as well as significant private capital inflows related to investments in the gold mining sector and a return of flight capital.

Mali’s external public debt amounted to US$2.7 billion (CFAF 1,406 billion, or 142 percent of GDP) in 1994, up from US$2.6 billion (CFAF 760 billion, or 101 percent of GDP) the previous year. In 1995, the stock of debt was estimated at US$2.9 billion (CFAF 1,397 billion, or 113 percent of GDP). The bulk of debt outstanding at end-1995 was owed to multilateral creditors (54 percent), including IDA (29 percent), the African Development Bank (12.8 percent) and the IMF (5.2 percent). Debt owed to official bilateral creditors accounted for 46 percent of the total, with debt owed to Paris Club creditors representing 12 percent and that to the Russian Federation estimated at 18 percent. External payments arrears, owed to both multilateral and bilateral creditors, were eliminated in 1994. Mali’s financial obligations to foreign commercial banks and official export credit agencies accounted for less than 0.1 percent of total debt outstanding between 1992 and 1994, and was entirely eliminated in 1995. 1/

Mali’s scheduled external debt service increased from CFAF 47.5 billion (39.5 percent of exports of goods and nonfactor services) in 1993 to CFAF 94.1 billion in 1994 (42.2 percent), before declining to CFAF 83.8 billion (30.6 percent) in 1995. Over the 1994–95 period, Mali continued to benefit from debt relief under its October 1992 Paris Club rescheduling arrangement, debt moratoria from the Russian Federation and the People’s Republic of China, and debt cancellation equivalent to CFAF 114.7 billion granted by France, Italy, and Switzerland in early 1994.

With regard to Mali’s exchange and trade system, the key development over the 1994–95 period was, of course, the change in parity between the CFA franc and the French franc in January 1994. All other exchange arrangements remained unchanged; in particular, exchange rates for all other currencies officially quoted in the Paris exchange market remained based on the fixed rate for the French franc and the Paris exchange market rate for the currency concerned. There remain no taxes or subsidies on purchases or sales of foreign exchange; however, foreign exchange transfers are subject to a stamp tax.

Prior to June 1, 1996, Mali, as well as its WAEMU partners, availed itself of the transitional arrangements under Article XIV, Section 2, of the Fund’s Articles of Agreement. Nevertheless, Mali maintained an exchange system that was free of restrictions on the making of payments and transfers for current international transactions, similar in most respects to those of other French franc area countries. Effective June 1, 1996, Mali, in concert with its WAEMU partners, accepted the obligations of Article VIII, Sections 2, 3, and 4 of the Fund’s Articles of Agreement.

There were minimal changes to Mali’s trade regime over the period 1994–95. Customs and fiscal duties are levied on the c.i.f. values of imports from all countries. Import duties are applied on an ad valorem basis; there are two rates for customs duties (zero percent and 5 percent) and three rates for fiscal duties on imports (zero, 10 percent, and 25 percent). Imported goods from all countries are subject to a customs service fee, equivalent to 5 percent (3 percent for petroleum products) of the c.i.f. value of the imported goods. In 1994 the average effective tariff was 16 percent; it increased to 20 percent in 1995.

6. Savings and investment 1/

In 1994, Mali registered a strong increase in investment; total investment expenditures rose to 26.5 percent of GDP from 21.9 percent in 1993, with government investment accounting for 13 percent of GDP, up from 9.3 percent, and private investment increasing from 12.6 percent to 13.5 percent of GDP. Rising investment expenditure, largely concentrated in the areas of gold mining, the cotton sector, and donor-financed development projects, was financed by an increase in domestic savings, up from 6.4 percent of GDP in 1993 to 6.7 percent in 1994, and an increase in official transfers in an amount equivalent to 13.3 percent of GDP in 1994, up from 8.9 percent in 1993.

The high level of investment spending posted in 1994 was essentially maintained in 1995, with total investment accounting for 26.0 percent of GDP. A decline of official transfers in 1995, equivalent to 4.3 percentage points of GDP, was offset by a significant increase in domestic savings, which rose from 6.7 percent of GDP in 1994 to 10.1 percent in 1995; significant increases were registered in both government and nongovernment sector savings.

CHART 1MALI: MAIN ECONOMIC INDICATORS, 1987–95

Sources: Data provided by the Malian authorities; and staff estimates.

1/ Percentage change in GDP deflator.

2/ Central government, on a commitment basis.

CHART 2MALI: REAL AND NOMINAL EFFECTIVE EXCHANGE RATES JANUARY 1980–JUNE 1996

(Period average; 1990 = 100)

Source: IMF Information Notice System.

1/ Based on relative CPIs.

II. The Cotton Sector in Mali 1/

1. Background

Mali has been a significant producer of cotton for about 40 years and now ranks as one of the largest cotton producers and exporters in sub-Saharan Africa. Cotton is grown under rainfed conditions in a region located south of the Niger River and west of Mopti. Total cultivated area currently exceeds 300,000 hectares, and an estimated rural population of 1.5 million people (out of a total population of 9.2 million) directly depends on cotton cultivation for its livelihood. In economic and financial terms, cotton represented in 1995 more than 50 percent of exports (CFAF 127 billion), 10 percent of government revenue (CFAF 16.4 billion), and 7 percent of total GDP. In 1995, farmers’ gross income directly generated by cotton production amounted to CFAF 38 billion, compared with a total government wage bill of CFAF 48 billion.

In Mali, cotton is primarily produced under the supervision of the Compagnie Malienne pour le Developpement des Textiles (CMDT). 2/ The CMDT area covers five geographic regions and accounts for 95 percent of total cotton production in Mali. In addition to its key responsibilities of processing and marketing, CMDT provides a full range of production-related services to producers, including the sale of inputs, extension services, and cotton research. All seed cotton produced is ginned in a network of 13 ginneries operated directly by CMDT. Two textile companies, the Compagnie Malienne des Textiles (COMATEX) and Industry des Textiles du Mali (ITEMA) process cotton fibers domestically. Together, these two companies absorb less than 2 percent of total production, which is almost entirely exported as cotton fiber.

While the institutional structure of the cotton sector is built around the CMDT, as described above, additional support and development activities are carried out directly by farmers’ associations (Associations villageoises). The total number of associations currently exceeds 1,000; their main functions cover the distribution of inputs, the collection of cotton, and the guaranteeing as well as the distributing of credit for equipment. They also undertake health, literacy, and training programs, and participate in the construction of storage facilities.

2. Institutional framework

The responsibilities of the CMDT are spelled out in five-year performance contracts between the government, the CMDT, and cotton producers. The current performance contract, covering the period October 1994 to September 1998, extends the main provisions of the previous contract for 1989–94. The new contract reaffirms the main responsibilities of CMDT, namely processing and marketing of Mali’s cotton production, and contributing to rural development.

a. Processing and marketing of cotton

As the sole entity responsible for the marketing of Malian cotton, CMDT, in consultation with producers, sets production objectives for each crop year. These objectives must be consistent with the effective ginning capacity of CMDT (Article 5 of the performance contract). They are also set taking into account the expected trends in international cotton prices for any given crop year.

CMDT is committed to purchase all cotton output, at a fixed price up to the production target set for the year; the producer price is also determined annually under the terms of the performance contract. At the operational level, production quotas are set for each of the five cotton-producing regions, for every sector within those regions and for each village in every sector. Although CMDT has no contractual or legal obligation to purchase any amount in excess of the agreed quotas, the need to invoke this clause of the contracts has not arisen yet.

The level of remuneration paid to cotton producers aims at ensuring an equitable distribution of the sector’s profits among all interested parties. The remuneration of producers is effected through a two-tier mechanism, including (a) the setting, annually, of a minimum floor price for the crop year, and (b) the payment of a premium determined by the level of CMDT’s profits from the previous financial year. The minimum guaranteed price was set at CFAF 125 per kilo for the 1994/95 crop year and kept unchanged for 1995/96. This price level is considered consistent with the need to provide a minimum degree of financial incentive to producers and the financial capacity of the CMDT. In calculating the appropriate level of the floor price, attention is paid to the cost of inputs used by producers, in particular for fertilizers and pesticides, which represent a significant share in the cost structure of cotton producers. The capacity of CMDT to pay the minimum price without endangering its financial viability, in turn, is largely determined by the level of international cotton prices. The premium to be paid to producers each crop year is calculated at the end of each financial year, and is based on the estimated level of CMDT net profits. Under the provisions of the performance contract, the amount available for payment of the premium is set at the equivalent of 35 percent of CMDT’s net profits. The premium applies to quantities of seed cotton purchased in the next crop year.

In addition to a floor price, intended to provide a degree of protection to farmers against fluctuations in the world price, the performance contract also provides for a stabilization mechanism into which CMDT pays a share of its retained earnings. The Stabilization Fund can also receive contributions from external donors in the event CMDT is unable to finance the mechanism from its own resources. The minimum amount of resources accruing to the stabilization fund is set according to the level of production of cotton, which, in turn, is based on the volume of the latest crop year. According to the performance contract, this minimum amount must equal 25 percent of the purchases of CMDT in the latest crop year. Any difference between this latter amount and the balance in the stabilization fund must be paid by CMDT (see Table 7 for details of calculation). 1/

b. Rural development

Under the terms of the current performance contract, CMDT has also assumed a significant number of rural development responsibilities. Some of these responsibilities are directly related to the development and maintenance of cotton production systems, the cost of which is met with CMDT’s own resources; other responsibilities 2/ are financed from Mali’s government budget resources. These dual sets of responsibilities are listed as follows.

c. Activities financed by CMDT

These include all activities related to production, including (a) advisory functions in the area of management, and integration of agricultural and livestock breeding activities; (b) training and assistance to women directly involved in cotton production; (c) provision of literacy programs to producers; (d) research; (e) production of seeds; (f) maintenance of a number of secondary roadways; and (g) evaluation of performance of cotton producers.

d. Activities financed by the government

Activities financed by the government correspond to a number of public service missions entrusted to CMDT by the government, which include participation in: (a) the development of access to safe water for rural populations; (b) the development of food production; (c) the promotion of a better livestock health situation; (d) the promotion of women’s role in development; (e) the training of farmers in areas of stock management; and (f) the design and implementation of land management techniques.

The existing institutional framework has clearly helped promote the cotton sector in Mali. While not a major producer of cotton by world standards (its share of world production is less than 1 percent), Mali is now the largest in sub-Saharan Africa, having overtaken, in particular, Benin, C6te d’Ivoire, Tanzania, Zimbabwe, and Sudan. Its growing share of African production, and the quality of its cotton, demonstrate the soundness of the policies implemented by the authorities since the signing of the first performance contract in 1989. These policies are fully supported by Mali’s external partners, notably through the extension of financial support to CMDT and the cotton sector in general during the first phase of implementation of the performance contract and in 1992 and 1993, when competitiveness problems resulting from the overvaluation of the CFA franc were aggravated by weak international cotton prices. The medium- and long-term outlook for the cotton sector appears quite promising, especially in view of the sound financial position of the CMDT, the maintenance of adequate financial incentives to producers and prudent resource management systems.

e. Financial position of CMDT

After experiencing financial difficulties in the years prior to 1994, the CMDT is now considered financially sound, in large part as a result of the devaluation of the CFA franc and increases in international prices. The average export price of CMDT thus rose from CFAF 295 per kilo in 1993 to CFAF 746 per kilo in 1994 and further to CFAF 857 per kilo in 1995. An additional factor in CMDT’s financial results has been improvements in the quality of its management, following restructuring efforts in 1993 and 1994. Reflecting these developments, the financial results of CMDT improved markedly, from a deficit of CFAF 7.9 billion in 1993 to a surplus of CFAF 29.2 billion in 1994 and an estimated comparable amount for 1995. The strengthening of CMDT is already being reflected in the lowering of its borrowing costs, as Malian commercial banks now generally consider this company as one of the most creditworthy borrowers in the country.

f. Incentive mechanisms

While the guaranteed producer price of cotton in Mali is one of the lowest in Africa, it does not appear to have hampered the development of production. This is in large part due to the satisfactory operation of the profit-sharing scheme which, at least at current world prices, allows for the payment of a significant premium. An important factor in the profit sharing scheme is that the amount of the premium (for the previous crop year) is known at the beginning of the crop year, when farmers decide, in collaboration with CMDT, on the amount of land and financial resources they will commit to cotton production. An additional, and important, feature of the mechanism is its reliability; based on the experience of the last several years, payments to cotton farmers are made promptly, at the time of delivery of seed cotton to CMDT.

g. Land management

There is ample evidence that Malian farmers are managing their land resources in a prudent way and that the attractiveness of cotton production is not creating any immediate danger to the ecosystem. On average, cultivated area devoted to cotton in the CMDT zones does not exceed 30 percent of total cultivated area, a level consistent with the three-year rotation system thought indispensable in the African context to prevent land deterioration. While important environmental issues need to be addressed more forcefully (a problem more generally related to agriculture in Mali), the current level of production is sustainable according to the World Bank and could even be increased by up to 20 percent, under current production methods, without exerting undue pressure on land resources.

3. Characteristics of cotton cultivation

Over the past 10 years, total Mali an cotton production has averaged about 300,000 tons a year, although fluctuations between crop years have been substantial. These variations are for the most part explained by shifting climatic conditions, as all Malian cotton is grown under rainfed conditions. An additional factor is the ability of the CMDT to influence the level of production through the guaranteed price mechanism. As described above, CMDT is obligated to purchase cotton at the guaranteed price, but only within the production limits agreed with representatives of cotton producers. By restricting production, CMDT has thus been able to effectively contain losses in years when international cotton prices were not sufficient to generate profits at the going exchange rate.

As noted above, cotton production in Mali is, for the most part, centered in five regions, where it coexists with subsistence farming. On average, areas under cotton cultivation represent less than 30 percent of total cultivated area, as farmers continue to give priority to food production, and particularly cereals. Production techniques are still very labor intensive, requiring a high ratio of active personnel to total output (see Table 5). Only 20 percent of the nearly 110,000 Malian farms involved in cotton production are considered to be fully equipped (i.e., owning at least one ox-drawn plough and two pairs of oxen), while about 30 percent have no equipment other than hand-tools. The average size of cotton farms is about 10 hectares and average yields are about 1.2 tons per hectare. Size and yields vary, however, with the degree of equipment of farms. Fully equipped farms (Type A) average yields of 1.5 tons/ha, while those of moderately equipped farms (Type B) and of manual farms (Type C) do not exceed 1.3 tons and 1.1 tons per hectare, respectively. Similarly, the size of Type A farms, on average, is close to 20 hectares, while Type B and Type C farms generally do not exceed 12 and 5 hectares, respectively. These disparities in size and yields are reflected in significant differences in income levels.

4. Impact of the devaluation

The devaluation of the CFA franc in January 1994 had a significant, positive impact on the profitability of Mali’s cotton sector. With respect to producers, the increases in producer prices and the premiums distributed under the profit-sharing system more than offset the increase in the costs of imported inputs, resulting in increases in net income. Pre-devaluation net income per person, which averaged CFAF 10,943 for Type A farms against CFAF 7,100 for Type B farms and CFAF 5,335 for Type C farms, has been estimated to have increased by almost 25 percent for Type A farms, and 20 percent and 14 percent for Type B and Type C farms, respectively (see Tables 6A6C). The larger increase in the income of better equipped farms has widened the income disparities between small and large farmers. Specifically, the post-devaluation income level of small farmers is estimated to be equivalent to 44 percent of that of Type A farms, compared with 49 percent before the devaluation, mainly reflecting the higher share of imported inputs in unmechanized farms and the correspondingly higher increase in production costs experienced by this type of farms. For all categories of farms, however, increases in net income were insufficient to fully compensate for increases in prices levels as measured by the Consumer Price Index (CPI) for Bamako, which increased by 32 percent in 1995 on an end-of-period basis.

CMDT’s financial situation was significantly improved as a direct result of the devaluation and is reflected in the evolution of its profits for the three crop years to 1996 (Table 3). However, these results, which contrast sharply with the series of deficits experienced prior to the devaluation, also reflect the impact of exceptionally favorable international prices and weather conditions. While markedly strengthened, the financial situation of CMDT remains vulnerable to sharp variations in international prices for cotton and the vagaries of weather conditions typical to the Sahel region.

5. Conclusion

Mali’s potential as a cotton producer is significant. As a result of the 1994 devaluation, the profitability of cotton farming increased substantially. The improvement in the level of cotton farmers’ income should strongly contribute further to the development of Mali’s cotton potential. Key medium-term objectives should aim at: (a) the development of new arable lands in new areas, as well as traditional cotton-growing areas; (b) an increase in the share of cotton in total cultivated areas; and (c) an increase in yields per hectare, which have tended to lag behind those experienced in the rest of the world. As indicated by the financial results of better equipped farms, the use of modern farming techniques translates into significant improvements in income levels, compared with those of traditional farming. However, even Mali’s more modern techniques of production remain rudimentary by international standards, and the scope for improvement in yields would appear substantial. Rapid progress in this direction will require the maintenance of reliable payment and remuneration mechanisms as provided for under the current arrangements. But it will also require more forceful efforts to raise educational levels of farmers and to improve access to appropriate sources of financing for medium- and long-term investment. Finally, greater attention will also need to be given to environmental issues, as fewer than 10 percent of farms are implementing a consistent program of land preservation.

Table 1.Mali: Economic Indicators of the Cotton Sector, 1991–96(In billions of CFA francs, unless indicated otherwise)
199119921993199419951996
Exports of cotton48.937.839.239.479.7126.9
(in percent of total exports)46.739.539.621.334.051.0
Taxes from cotton sector0.912.016.420.5
(in percent of total budget revenue)1.09.510.211.3
Producers sales of cotton25.425.827.223.438.162.6
(in terms of government wage bill)59.962.266.552.679.4123.7
Cotton production as a percentage of GDP7.57.07.66.37.18.1
Memorandum items:
Total exports104.695.898.9185.0234.7248.9
Total budget revenue96.389.194.0126.0160.7181.4
Government wage bill42.441.540.944.548.050.6
Nominal GDP682.1753.5755.11,028.71,231.31,357.7
Real GDP655.2710.1693.3709.1754.4784.8
Value added of cotton49.449.452.944.453.263.8
Sources: Malian authorities; and staff estimates.
Sources: Malian authorities; and staff estimates.
Table 2.Mali: CMDT’s Cost Structure, 1990–96 1/(In CFA francs per kilogram, unless otherwise indicated)
1990199119921993199419951996
Producer price 2/84.884.984.884.184.9124.4125.0
Marketing costs13.39.48.18.89.19.413.8
Road maintenance0.20.30.10.11.52.31.1
Interest costs0.30.81.10.92.72.53.4
Exchange losses18.55.1
Dividend to Government1.21.01.00.8
Compagnie Francaise pour le Developpement des Textiles1.51.41.30.62.51.10.9
Rural development6.68.77.15.37.914.616.5
Overhead costs5.88.78.85.610.19.29.0
Seed cotton cost113.7115.2112.3106.3137.1168.6169.8
Ginned cotton cost equivalent266.0277.3267.2251.9327.9385.3405.5
Ginning43.356.255.751.787.170.1113.1
Insurance1.10.71.11.21.51.60.9
Interest on crop credits12.17.89.46.51.52.62.9
Storage3.33.02.82.93.34.54.1
Ginned cotton cost325.7344.9336.1314.2421.3464.1526.5
FOB costs42.742.449.145.056.563.463.7
FOB price368.4387.4385.3359.2477.8527.6590.2
Freight25.234.431.932.256.366.269.2
CIF price393.6421.8417.1391.4534.1593.7659.3
Memorandum items (in tons):
CMDT production219,525264,142261,082307,234229,338277,166390,088
OHVN 3/11,27211,87511,31812,19010,90515,85515,851
Total230,797276,017272,400319,424240,243293,021405,939
Ginned quantities230,917275,929272,190319,424240,558292,676404,262
Yield42.741.542.042.241.843.841.9
Ginned cotton98,694114,646114,414134,754100,613128,090169,313
CIF price - cotton equivalent
producer price195.2217.5215.3192.1331.0309.5360.8
(in percent of cotton equivalent producer
price in terms of CIF price)50.448.448.450.938.047.945.3
Average export price of CMDT’s cotton (FOB basis)460423.8340.7295.3746.1856.8862.8
Margin of CMDT’s price over international price
(in CFA francs)91.636.4-44.6-63.9268.3329.2272.6
(in percent of CMDT’s costs (FOB basis))24.99.4-11.6-17.856.262.446.2
Source: Compagnie Malienne pour le Développement des Textiles (CMDT).

Data reported on CMDT’s financial year, October to September.

Excluding premium to producers.

Office de la Haute Vallee du Niger.

Source: Compagnie Malienne pour le Développement des Textiles (CMDT).

Data reported on CMDT’s financial year, October to September.

Excluding premium to producers.

Office de la Haute Vallee du Niger.

Table 3.Mali: CMDT Financial Results, 1992–94(In billions of CFA francs)
199219931994
Purchases22.225.919.5
Marketing costs2.12.72.8
Road maintenance0.00.00.3
Interest payments0.30.30.6
Exchange losses0.00.00.0
Dividend to Government0.30.30.0
CFDT 1/0.30.20.7
Rural development1.91.61.9
Overhead costs2.31.82.3
Other1.31.31.3
Total 130.634.029.3
Ginning6.16.87.4
Insurance0.10.20.2
Interest on crop credits1.10.90.3
Storage0.60.60.6
Total 238.542.337.8
FOB costs5.24.95.6
CIF costs3.03.55.7
Total costs46.750.849.1
Sales43.042.878.3
Profit (loss = -)-3.7-7.929.2
Source: Compagnie Malienne pour le Développement des Textiles.
Source: Compagnie Malienne pour le Développement des Textiles.
Table 4.Mali: Cotton Farmers’ Income, 1990–96 1/(In thousands of CFA francs)
1990199119921993199419951996
Income
Yield per hectare1,230.01,360.01,275.01,310.01,195.01,085.01,215.0
Producer price per kilogram85.093.095.085.097.5130.0155.0
Income per hectare104.6126.5121.1111.4116.5141.1188.3
Operating expenses
Fertilizer per hectare18.314.514.513.212.716.522.3
Urea per hectare6.84.95.04.84.46.28.1
Insecticide per hectare12.016.915.614.314.315.613.2
Other0.50.50.50.50.50.80.8
Equipment amortization14.618.418.418.418.432.240.2
Maintenance2.02.32.32.32.32.52.5
Hand tools0.50.50.50.70.71.01.0
Net income per hectare49.868.564.357.263.366.3100.3
Net real income per hectare (1990 prices)49.872.070.562.552.350.273.1
Percentage change in real net income per hectare44.5-2.0-11.4-16.3-4.145.5
Memorandum items:
Production (tons)229,528273,512272,190319,625240,252293,021405,939
Area cultivated (hectares)186,608201,112213,482243,989201,048270,065334,106
CPI index(1987 = 100)112.74107.31102.82103.24136.32148.8154.75
Source: Compagnie Malienne pour le Développement des Textiles (CMDT).

Data reported on CMDT’s financial year, October to September.

Source: Compagnie Malienne pour le Développement des Textiles (CMDT).

Data reported on CMDT’s financial year, October to September.

Table 5.Mali: Cotton Farm Indicators 1/
Type AType BType C
Percentage of farms using external labor force625350
Percentage of farms using anti-erosion techniques866
Percentage of farms owning:
Oxen1009935
Goats825021
Donkeys82459
Cultivated area per hectare19125
Cultivated area per working person221
Share of cotton in cultivated area272323
Average number of individuals living on the farm35209
Of which: working(12)(6)(4)
Yields per hectare:
Cotton151412661036
Cereals1062989770
Groundnuts729623550
Source: Compagnie Malienne pour le Développement des Textiles (CMDT).

Type A: fully equipped farms; Type B: partly equipped farms; Type C: unmechanized farms.

Source: Compagnie Malienne pour le Développement des Textiles (CMDT).

Type A: fully equipped farms; Type B: partly equipped farms; Type C: unmechanized farms.

Table 6A.Mali: Devaluation Effects on Farmers’ Income 1/Cotton producers’ financial results Fully equipped farm (Type A)
Before devaluationAfter devaluationNet increase
CerealsCottonOtherTotalCerealsCottonOtherTotalCerealsCottonOtherTotal
Expenditures104,455318,6455,006428,106135,188492,4396,890634,51730,733173,7941,884206,411
Chemicals46,462185,052231,51457,365315,134372,49910,903130,062140,985
Maintenance30,75913,7802,46147,00039,98717,9143,19961,1009,2284,13473814,100
Hand tools6,2502,8005009,5508,1253,64065012,4151,8758401502,865
Wages28,00028,00036,40036,4008,4008,400
Interest2,1118,95420611,2713,00812,08230815,3988973,1281024,127
Amortization18,87380,0591,839100,77126,703107,2692,733136,7057,83027,21089435,934
Income151,914644,40114,805811,120217,020871,79122,2081,111,01965,106227,3907,403299,899
Sales/hectare12,153115,07214,805142,03017,362155,67722,208195,2475,20840,6057,40353,217
Sales/person4,34018,41142323,1756,20124,90863531,7431,8606,4972128,569
Gross income66,332405,81511,638483,785108,535486,62118,051613,20742,20380,8066,413129,422
Gross income/hectare5,30772,46711,63889,4128,68386,89718,051113,6303,37614,4306,41324,219
Gross income/person1,89511,59533313,8223,10113,90351617,5201,2062,3091833,698
Net income47,459325,7569,799383,01481,832379,35215,318476,50234,37353,5965,51993,488
Net income/hectare3,79758,1719,79971,7666,54767,74115,31889,6062,7509,5715,51917,840
Net income/person1,3569,30728010,9432,33810,83943813,6149821,5311582,671
Memorandum items;
Cultivated area(ha)136119136119
Yield/hectare1,0621,5147291,0621,514729
Production (kg) Number of persons living13.2758,47872913,2758,478729
on the farm3535
Source: Compagnie Malienne pour le Développement des Textiles (CMDT).

In CFA francs.

Source: Compagnie Malienne pour le Développement des Textiles (CMDT).

In CFA francs.

Table 6B.Mali: Devaluation Effects on Farmers’ Income 1/Cotton producers’ financial results Partly equlpped farm (Type B)
Before devaluationAfter devaluationNet increase
CerealsCottonOtherTotalCerealsCottonOtherTotalCerealsCottonOtherTotal
Expenditures76,573175,0822,892254,54799,892269,7673,984373,64323,31994,6851,092119,096
Chemicals36,31899,217135,53545,452168,642214,0949,13469,42578,559
Maintenance19,2277,3301,44227,99924,9969,5301,87536,4015,7692,2004338,402
Hand tools4,0001,5253005,8255,2001,9833907,5731,200458901,748
Wages15,25015,25019,82519,8254,5754,575
Interest2,4757,52416710,1663,54610,20725114,0041,0712,683843,838
Amortization14,55344,23698359,77220,69859,5801,46881,7466,14515,34448521,974
Income96,550293,4786,521396,549137,929397,0389,782544,74941,379103,5603,261148,200
Sates/hectare12,06996,22210,868119,15917,241130,17616,303163,7215,17233,9545,43544,561
Sates/|person4,82814,67432619,8276,89619,85248927,2372,0695,1781637,410
Gross income34,530162,6324,612201,77458,735186,8517,266252,85224,20524,2192,65451,078
Gross income/hectarc4,31653,3227,68765,3257,34261,26312,11080,7143,0267,9414,42315,390
Gross income/person1,7278,13223110,0892,9379,34336312,6431,2101,2111332,554
Net income19,977118,3963,629142,00238,037127,2715,798171,10618,0608,8752,16929,104
Net income/hectare2,49738,8186,04847,3644,75541,7289,66356,1462,2582,9103,6158,782
Net income/person9995,9201817,1001,9026,3642908,5559034441081,455
Memorandum items:
Cultivated area(ha)8.03.10.611.78.03.10.612
Yield/hectare9891,2666239891,266623
Production (kg)7,9123,8613747,9123,861374
Number of persons living
on the farm2020
Source: Compagnie Malienne pour le Développement des Textiles (CMDT).

In CFA francs.

Source: Compagnie Malienne pour le Développement des Textiles (CMDT).

In CFA francs.

Table 6C.Mali: Devaluation Effects on Farmers’ Income 1/Cotton producers’ financial results Unmechanized farm (Type C)
Before devaluationAfter devaluationNet increase
CerealsCottonOtherTotalCerealsCottonOtherTotalCerealsCottonOtherTotal
Expenditures1,60038,54510040,2452,08063,42413065,63448024,8793025,389
Chemicals33,04533,04556,27456,27423,22923,229
Maintenance
Hand tools1,6005001002,2002,0806501302,86048015030660
Wages5,0005,0006,5006,5001,5001,500
Interest
Amortization
Income9,17178,74135088,26213,102106,527525120,1543,93127,78617531,892
Sales/hectare2,86678,7411,75083,3574,094106,5272,625113,2461,22827,78687529,889
Sales/person1,0198,749399,8071,45611,8365813,3504373,087193,544
Gross income7,57140,19625048,01711,02243,10339554,5203,4512,9071456,503
Gross income/hectare2,36640,1961,25043,8123,44443,1031,97548,5221,0782,9077254,710
Gross income/person8414,466285,3351,2254,789446,05838332316723
Net income7,57140,19625048,01711,02243,10339554,5203,4512,9071456,503
Net income/hectare2,36640,1961,25043,8123,44443,1031,97548,5221,0782,9077254,710
Net income/person8414,466285,3351,2254,789446,05838332316723
Memorandum items:
Cultivated area(ha)3.21.00.24.43.21.00.24.4
Yield/hectare7701,0365501,0621,514729
Production (kg)2,4641,0361103,3981,514146
Number of persons living
on the farm99
Source: Compagnie Malienne pour le Développement des Textiles (CMDT).

In CFA francs.

Source: Compagnie Malienne pour le Développement des Textiles (CMDT).

In CFA francs.

Table 6D.Mali: Devaluation Effects on Farmers’ Income 1/Net effects of the devaluation by type of exploitation
Type AType BType C
CottonPercent changeAll cropsPercent changeCottonPercent changeAll cropsPercent changeCottonPercent changeAll cropsPercent change
Expenditures173,79455206,4114894,68554119,0964724,8796525,38963
Chemicals130,08270140,9856169,4257078,5595823,2297023,22970
Maintenance4,1343014,100302,200308,40230
Hand tools840302,86530458301,748301503066030
Wages8,400308,400304,575304,575301,500301,50030
Interest3,128354,127372,683363,83838
Amortization27,2103435,9343615,3443521,97437
Income227,39035299,89937103,56035148,2003727,7863531,89236
Sales/hectare40,6053553,2173733,9543544,5613727,7863529,88936
Sales/person6,497358,569375,178357,410373,087353,54436
Gross income80,80620129,4222724,2191551,078252,90776,50314
Gross income/hectare14,4302024,219277,9411515,390242,90774,71011
Gross income/person2,309203,698271,211152,55425323772314
Net income53,5961693,488248,875729,104202,90776,50314
Net income/hectare9,5711617,840252,91078,782192,90774,71011
Net income/person1,531162,6712444471,45520323772314
Source: Compagnie Malienne pour le Dévdoppement des Textiles (CMDT)

In CFA francs.

Source: Compagnie Malienne pour le Dévdoppement des Textiles (CMDT)

In CFA francs.

Table 7.Mali: Stabilization Mechanism and Remuneration of Producers(In thousands of CFA francs, unless otherwise indicated)
Crop year 1993/94
Stabilization mechanism
I. Determination of level of Stabilization Fund:
Commercialization of seed cotton by CMDT (in tons) (1)240,243
Average producer price (2)125
Value of CMDT purchases (3) = (l)×(2)29,944,368
Percentage taken into account for calculation of Stabilization Fund (4)0.25
Maximum level of Stabilization Fund (5) = (3)× (4)7,486,092
II. Determination of CMDT’s contribution:
Maximum level of Stabilization Fund (5)7,486,092
Effective level of Stabilization Fund (6)707,302
Amount due by CMDT (7) = (5)—(6)6,778,790
III. Determination of net margin of CMDT:
CMDT’s gross margin (8)20,815,603
Contribution to Stabilization Fund (9)6,778,790
CMDT’s net margin (10) = (8) - (9)14,036,813
Remuneration of producers
IV. Calculation of amount available for distribution:
CMDT’s net margin (10)14,036,813
Percentage taken into account for calculation of remuneration (11)0.35
Amount available under the 1993/94 crop year (12) = (10) × (11)4,912,885
V. Calculation of premium paid in the 1994/95 crop year
Amount available under the 1993/94 crop year (13)4,912,885
Remuneration paid by anticipation in the 1993/94 crop year (14)3,003,038
Amount to be paid under the 1993/94 crop year (15) = (13) × (14)1,909,847
Estimated purchases of CMDT for 1994/95 (in tons) (16)353,684
Premium to be paid per kg. in the 1994/95 crop year (17) = (15) / (16)5.4
Source: Compagnie Malienne pour le Développement des Textiles (CMDT).
Source: Compagnie Malienne pour le Développement des Textiles (CMDT).

III. Developments in the Public Enterprise Sector 1/

1. Introduction and background

a. Introduction

Following independence in 1962, Mali developed a large public enterprise sector with the declared aim of promoting the rapid industrialization and modernization of the economy. However, by the early 1980s, the need for a comprehensive reform of the sector became increasingly evident in light of growing financial imbalances. This reform began only in 1988 when the authorities adopted a Public Enterprise Sector Adjustment Program (PESAP) supported by the World Bank and other donors. The PESAP was successful in significantly reducing the size and overall imbalances of the sector, but was less successful in improving the financial performance of certain enterprises that remained in the government portfolio. Since the conclusion of the PESAP in 1992, public enterprise reform has continued, albeit at a slower pace. In June 1996, the government adopted an action plan for the sector outlining its strategy and measures to be carried out in the next phase of public enterprise reform.

This chapter is divided into five parts. The first section provides some background, after which the second section examines the reforms implemented over the 1988–92 period in the context of the PESAP and the resulting changes in the size and economic activity of the public enterprise sector. The third section covers public enterprise reforms implemented over the 1992–96 period. Special attention is given to the impact of the January 1994 devaluation of the CFA franc and the evolution of the aggregate operating results and savings-investment balance of the sector. The fourth section of the paper outlines the goals and objectives of the ongoing public enterprise reform program as reflected in the recently adopted action plan, and the final section is a conclusion. 2/

As commonly defined in Mali, public enterprises (PEs) include all government-owned or publicly controlled economic entities of a commercial or financial nature. 3/ This definition includes enterprises in which the government maintains a small minority share. In practice, the government plays an instrumental role in determining the composition of the board of directors, and maintains an effective veto over the operations of all PEs, even those in which it has a minority shareholding.

b. Background

In the two decades following independence in 1962, Mali pursued economic and financial policies characterized by state intervention in most areas of the economy and limited reliance on market mechanisms. During this period, it was assumed that the private sector in Mali was too small to make a substantial contribution to the country’s development. Consequently, the creation of public enterprises became a key element in the government’s economic development strategy. Many industrial and commercial enterprises were established during the 1960s and 1970s, and came to dominate activity in the formal sector. By 1980, there were 84 public enterprises in Mali, as well as various administrative entities providing public services on a commercial basis. 1/ Despite their commercial nature, most PEs were required to emphasize short-term political and social objectives of the government over profitability by, for example, subsidizing and stabilizing consumer prices, ensuring the distribution of basic commodities, and providing employment.

Overall, the performance of the PE sector was extremely poor, particularly in terms of financial results. In addition to the constraints mentioned above, generally weak management led to ill-conceived investment decisions, overstaffing, and lax financial controls. Excessive government interference in the day-to-day operations of enterprises, coupled with inadequate incentives, hampered the accountability of the PE management. Moreover, irrespective of the problems encountered by corporate entities, the distorted economic policy environment severely hampered the viability of public and private enterprises. Price controls, mandatory remission of profits to the government without regard to enterprises’ investment needs, and the inability to collect payments from clients undermined the financial position of the PEs.

By the early 1980s, the sector was on the verge of collapse. In 1981, net losses of the 12 largest PEs (in terms of turnover and employment) were estimated at CFAF 4 billion (almost 1 percent of GDP). As the government’s fiscal position weakened, as a result of deficits of the PE sector, poor tax administration, and expenditure overruns on personnel and scholarship spending, the banking system became the largest source of financing for the sector’s deficits; almost to 70 percent of credit to the economy was absorbed by the PE sector in 1981. However, owing to their deteriorating financial position, the PEs proved increasingly unable to service their obligations to the banking system, and the emergence of large nonperforming loans became a growing threat to the health of the financial system. In addition, the PEs accumulated arrears on their external debt, and sizable cross-debts emerged between the PEs and the government.

Initial reforms in the public enterprise sector were carried out beginning in 1982 in the context of broader macroeconomic reforms supported by a series of three Fund stand-by operations. However, the measures implemented in the PE sector proved inadequate to redress its financial situation. Losses for the 12 largest enterprises reached CFAF 5.3 billion (about 1 percent of GDP in 1985), and the PEs continued to accumulate payments arrears on domestic bank debt and government-guaranteed external debt. Regarding the macroeconomic reform program, the authorities made substantial gains in containing public sector employment and in liberalizing markets and prices. Nonetheless, by 1986, the authorities’ commitment to their macroeconomic and PE reform programs was suffering from internal conflicts within the government, and as a result, further reforms in the PE sector stalled.

2. The Public Enterprise Sector Adjustment Program (PESAP)

a. Reforms supported under the PESAP

By 1988, serious fiscal imbalances had reappeared, with public enterprises accumulating substantial arrears, vis-à-vis the government and private creditors. Faced with these disequilibria, the authorities adopted a medium-term adjustment program in mid-1988 supported by the IMF and the World Bank. Because the turnaround of PE sector finances and efficiency was seen as a key precondition for restoring macroeconomic equilibrium and fostering growth, a Public Enterprise Sector Adjustment Program (PESAP) of $40 million was approved by the World Bank in June 1988. 1/ IMF support was provided in the form of a stand-by arrangement and an arrangement under the Structural Adjustment Facility (SAF). The principal objective of the PESAP was to decrease the burden of the PE sector on Mali’s economy and public finances by reducing the scope of the sector and improving its financial performance through: (i) rationalization of the sector by means of restructuring and divestiture; (ii) institutional and legal reforms redefining relations between the government and PEs; (iii) financial sector reforms; and (iv) improvements to the macroeconomic environment through price and trade liberalization.

(1) Divestiture and restructuring

In order to reduce the burden of public enterprises on government finances and the banking system, the authorities established a program of restructuring and divestiture. Thirty-five enterprises were covered in the first phase of the PE sector reform (Table 1). 1/ Fifteen enterprises were targeted for liquidation, 14 enterprises were to be fully or partially privatized, and the remaining 6 were to be restructured and retained as majority-owned enterprises in the public portfolio. In addition, the program called for the settlement of cross-debts between the government, the PEs, and the Banque de développement du. Mali (BDM), the largest creditor to the PEs, 2/

Table 1.Mali: Public Enterprise Reforms Carried out under the PESAP
EnterpriseActivityStatusAction TakenDatePayments to Treasury (CFAF millions)
Enterprises to be privatized: 14
COMATEXTextilesEPICLiquidated1991
EDIMPrintingSELiquidated, sale of assets1991109.0
EMAMAMaintenanceEPICPrivatized199121.8
Grand HotelHotelSEMPrivatized management1990
ITEMATextilesSEMPrivatized198949.4
PPMPharmaceutical distr.EPICPrivatization of certain assets1990134.6
SEMAReal estateSEPrivatized199156.0
SEPAMAGroundnut processingSEMLiquidated1991
SEPOMOilseed refiningEPICLiquidated, sale of assets19862,009.0
SMECMAAgric. equipmentSEMLiquidated, sale of assets199127.1
SOCAMCanningSEMLiquidated, sale of assets199173.0
SOCIMACementSELiquidated, sale of assets1991150.1
TAMALITanningEPICLiquidated, sale of assets199252.8
UCEMACeramicsEPICLiquidated, sale of assets1992205.3
Enterprises to be liquidated: 15
Air MaliAir transportEPICLiquidated19883,105.6
CMTRTruckingEPICLiquidated198810.0
EMABFurnitureEPICLiquidated198846.3
LPMBooksSELiquidated198810.0
OCINAMCinemaSELiquidated1988
SONETRAPublic worksSELiquidated19888.6
SHMHotel/tourismEPICLiquidated198874.7
SATRoad transportationSELiquidated1988117.0
SCAERAgric. equipmentEPICLiquidated1988
SEBRIMABrick manufacturingSELiquidated1988
SOCOMAFood processingSEMLiquidated1988149.7
SOMBEPECLivestock productsSELiquidated1988
SONEAMarketing of hidesSELiquidated1988
SOMIEXCommodity imp/distr.EPICLiquidated19882,095.8
socoramRadio manufacturingSEMLiquidated1988
Enterprises to be restructured: 6
COMANAVRiver transportationSEPerformance contract1991
EDMElectricity/waterSEMPerformance contract1989
OERHNHydroelectric worksEPICPerformance contract1989
RCFMRail transportationEPICPerformance contract1991
SONATAMCigarettes/matchesEPICPerformance contract1991
OPTPost/telecomsOfficeDissolved and replaced by ONP, SOTELMA, and SCPCE1989
TOTAL8,505.8
Source: Bureau des Entreprises Publiques; World Bank.
Source: Bureau des Entreprises Publiques; World Bank.

The liquidation of the 15 enterprises targeted under the program proceeded as planned. However, the divestiture of the 14 enterprises that the authorities intended to privatize encountered difficulties and resulted in delays in the implementation of the PESAP. Owing to a lack of interested investors, the government adopted the strategy of liquidating many of these enterprises, with the intention of later privatizing the assets. 3/ Of the enterprises targeted for privatization, seven were divested in this manner. Of the remainder, three were privatized through the sale of shares, two were liquidated and dissolved, one was put under management contract, and one enterprise, while remaining 100 percent government-owned, was able to proceed with the sale of certain assets.

Concerning the six enterprises slated for restructuring, the government’s strategy was to sign performance contracts with each enterprise, while the Office des Postes et Télécommunications was split into three separate entities. 4/ Although some improvements were made, the financial situation of the enterprises remained unprofitable. Moreover, the performance contracts were rarely adhered to, and most of the enterprises have been undergoing subsequent restructuring in the context of sector-specific investment operations.

A total of CFAF 8.5 billion was realized through the sale of shares, assets, and inventories over the approximately four years of the PESAP. Cross-debts among the PEs and between the PEs and the government, amounting to CFAF 21.2 billion, were settled over the period covered by the PESAP, including the settlement of roughly CFAF 2.5 billion in outstanding liabilities for the privatized enterprises, and CFAF 12.7 billion in liabilities and debts of the enterprises liquidated.

On the employment side, 3,270 employees in all were made redundant from the enterprises included in the PESAP, and of this total, 3,020 received termination grants. All PE employees made redundant under the PESAP were eligible for “redeployment” funds that were grants intended to support the creation of new enterprises and employment opportunities. 1/ As of end-September 1993, 1,384 former PE employees had made use of these funds. However, most workers treated these funds as supplemental severance payments and did not fully understand that these resources were to be used for a new enterprise. As a result, few new enterprises or jobs were set up by dismissed employees with access to the funds.

(2) Institutional reform

In the area of institutional reforms, revised legislation governing the PE sector was adopted, which strengthened the independence of the board of directors and granted more autonomy to management. 2/ The legal framework for mixed-capital companies (SEMs) was revised so that these enterprises would be governed solely by the commercial code, thereby limiting in principle the government’s rights to those of an ordinary shareholder. Personnel management was made more flexible through the adoption of a new law aiming, in particular, at introducing more flexibility in the hiring and dismissal of personnel by employers. 3/

The supervision of public enterprises continued to be spread among various ministries, depending on the activity of the enterprise. A technical agency, the Bureau des Entreprises Publiques (BEP), was responsible for overall monitoring of the PE sector and preparing the technical aspects of divestiture operations. 4/ In the context of the PESAP, efforts were made to strengthen the capacity of the Malian government to carry out divestiture operations and improve management of the PE sector. In particular, officials of the BEP received training in privatization techniques, management, corporate law, and accounting.

(3) Financial sector reform

Several financial sector reforms were undertaken under the PESAP to strengthen the operating environment for the PE sector and to shore up specific government-owned financial institutions. The BDM, the largest bank in Mali in terms of deposits, was the principal banker to the public sector. BDM’s portfolio primarily consisted of nonperforming loans to public enterprises and as a result, BDM gradually became illiquid. Consequently, the BDM resorted to substantial borrowing from the BCEAO (the central bank) and local commercial banks, weakening the entire banking system. Under the PESAP, the government adopted a restructuring plan under which the BDM was transformed into a joint capital company with only 20 percent government participation. In addition, a management contract was signed with a foreign bank to operate the BDM according to commercial principles, redundant staff were terminated, and nonperforming assets were removed from the balance sheet. Nonperforming assets totaling CFAF 62.4 billion were removed from BDM’s balance sheet, an operation financed by funds from the PESAP, the French Caisse Centrale de Coopération Economique, the Malian government, and the consolidation of CFAF 23.9 billion by the BCEAO as a liability of the Malian government. 1/

(4) Price and trade liberalization

In the context of the SAF and the PESAP, all price controls were abolished, including those on agriculture products and foodstuffs, and petroleum products. Over the 1988–92 period, all price controls on goods and services were gradually eliminated. 2/ In addition, all import quotas were abolished and the import and export licensing system was simplified. Price liberalization had a positive impact on the financial situation of many PEs, as prices were able to reflect production costs.

(5) Results of the PESAP

The PESAP was instrumental in reducing the financial imbalances of the PE sector, primarily through the liquidation of loss-making firms, some improvements in management to strengthen those firms remaining in the government’s portfolio, and through the adoption of more flexible pricing policies. Most of the enterprises in which the government maintained a minority holding but was able to obtain the support of foreign partners registered an improvement in their results. By 1992, the portfolio consisted of 49 enterprises (excluding those liquidated under the PESAP whose assets had not yet been privatized). Nonetheless, PEs remained active in many sectors of the economy where the private sector was likely to be more efficient, 1/ including the agricultural processing, chemical and hotel sectors, in addition to utilities and transport.

Despite the gains realized under the PESAP, many of the large enterprises remaining in the public sector continued to experience losses, particularly those PEs targeted for restructuring under the PESAP. In 1992, the 15 largest public enterprises realized an operating deficit of CFAF 2.0 billion in 1992 (0.3 percent of GDP). Although progress was made under the PESAP in granting the PEs more managerial autonomy, the constraints facing PE managers remained essentially unchanged: insufficient ability to change the size of their workforce, constraints on which goods or services to produce, and still inadequate incentives for managers and employees. The use of performance contracts had little impact, as both the government and the PEs proved unwilling or unable to fulfill the terms of the contracts, and sanctions were rarely invoked. In addition, the impact of the PESAP was somewhat diluted given that, of the 29 enterprises that were to be privatized or liquidated under the PESAP, 7 remained as PEs, albeit smaller in size or with a smaller government participation.

For those enterprises that were divested from the government portfolio, many of the privatized enterprises remained fragile and continued to make losses because they were often working from a base of outdated or unadapted equipment, inadequate working capital, and continued weak management. In many cases, the new owners were unable to undertake needed investments for lack of financing. In addition, the constraints on staff reductions and the setting of wages remained.

3. The public enterprise sector since 1992

a. Reforms carried out over the 1992–96 period 2/

Over the period 1992’96, the PE reform program proceeded more slowly relative to the period covered by the PESAP. The aggregate balance of the sector had declined from an estimated deficit of 1.0 percent of GDP in 1985 to a deficit of 0.3 percent in 1992, prompting the authorities to believe that the most pressing problems, including the threat posed to the financial system, had been resolved. In addition, fatigue with PE reform arose on the part of the authorities in light of the retrenchment of staff under the PESAP and the failure of the redeployment program to create job opportunities. From 1992 until mid-1996, the authorities did not adopt an overall follow-up PE sector reform program but pursued their reform program on an individual enterprise basis, proceeding with divestiture and restructuring operations at the level of individual enterprises. Nonetheless, in the context of a three-year arrangement under the ESAF approved in August 1992, the authorities proceeded to implement a set of measures to continue their public enterprise reform efforts and consolidate the gains achieved thus far.

Between 1992 and 1996, eight enterprises were privatized, and five others were liquidated (Table 2). 1/ The size of the sector as measured by capitalization fell by about CFAF 6 billion, or about 10 percent of total capitalization. A number of other enterprises were restructured or transformed into mixed-capital companies (SEMs), thereby opening up their capital to outside shareholders, a preliminary step toward privatization. 2/ in the context of these reform efforts, foreign partners were found for several enterprises, including the textile firms COMATEX and ITEMA, and the agricultural operations SUKALA and OTS. However, in 1995, the foreign partner of the Banque Malienne de Crédit et de Dépôts (BMCD) ceded its share in the bank to the government, making the latter the sole shareholder.

Table 2.Mali: Public Enterprise Reform, 1992–96
EnterpriseActivityStatusAction TakenDatePayments to Treasury (CFAF millions)
PetrostockPetroleum suppliesSELiquidated1992100.0
SOGEMORK 1/Gold miningSELiquidated19931,276.0
SOLIMALivestockSEMLiquidated1993
SNEDResearchSEMPrivatization199357.7
TAMALI 2/TanningEPICPrivatization1993185.1
BETRAMRoad equipmentSEPrivatization1993630.0
Grand Hotel 2/HotelSEMPrivatization1994600.0
COMATEX 2/3/TextilesSEMPrivatization19941.2
COMANAV 2/River transportationSERestructuring1994
OTS 3/4/Tea productionEPICRestructuring199410.0
ULBDairySEPrivatization1995450.5
OTER 3/Rural worksSEMPrivatization199555.4
SEPAMA 2/Groundnut process.SEMPrivatization19952,014.0
FRUITEMAFruit/vcg. exportsSEMLiquidated1995
PVMVeterinary productsEPICLiquidated1995
EDMElectricity/waterSEMManagement contract1995
SONATAM 2/3/Cigarettes/matchesSEOpening of capital 5/1995
SUKALASugar productionSEMOpening of capital 5/1995
OERHN 2/Hydroelectric worksEPICRestructuring1995
AFBOpening of capital 5/1996
TOTAL:5,379.9
Source: Bureau des Entreprises Publiques; World Bank

Payment made in 1995.

Enterprises that were included in the PESAP.

Status changed.

Leased to a foreign partner.

First legal step toward privatization.

Source: Bureau des Entreprises Publiques; World Bank

Payment made in 1995.

Enterprises that were included in the PESAP.

Status changed.

Leased to a foreign partner.

First legal step toward privatization.

Over this period, the impact on employment of these divestiture operations was relatively small given that many of the enterprises had already laid off employees in the context of their liquidations and that employment picked up in the privatized enterprises such as the Grand Hôtel and TAMALI. Nevertheless, employment in the PE sector declined by 1,512 persons between 1991 and 1995, primarily because of restructuring operations in some of the major PEs. This trend was mitigated to some extent beginning in 1994 by greater hiring by enterprises that had benefited from the devaluation, including CMDT and HUICOMA in the agricultural processing sectors, and the textile firms COMATEX and ITEMA.

Fiscal receipts from privatizations and asset sales between 1992 and 1995 totaled CFAF 5.4 billion; the bulk of this amount, roughly CFAF 4 billion, representing 2.3 percent of total revenue for the year, was realized in 1995. 3/ The sale of 80 percent of the Kalana gold mine was finalized in 1995 (related to the liquidation of SOGEMORK) for an amount of US$11.5 million, with the first payment of US$2.6 million (CFAF 1.3 billion) being made in 1995.

b. Current state of the public enterprise sector

At end-1995, the public enterprise sector in Mali comprised 41 enterprises, of which 35 were nonfinancial, commercially oriented enterprises; the government was the majority shareholder in 25 of these 41 enterprises (Table 3). 1/ At end-1995, the capitalization of the nonfinancial PEs totaled roughly CFAF 42 billion and annual turnover was close to CFAF 280 billion. Employment in the public enterprise sector, including financial enterprises, was almost 14,900 personnel (excluding temporary personnel), down from a level of about 20,000 in 1987 prior to the start of the PESAP, but still representing 23 percent of total formal sector employment. 2/

Table 3.Mali: Public Enterprises, End-1995
Government
EnterpriseActivityStatusParticipationCapitalTurnoverPersonnel 1/
(percent)(CFAF mill.)(CFAF mill.)
Banque Commerciale du Sahel - S A (BCS)BankingSA49.51,100.01,002.051
Banque de Développement du Mali -SA (BDM) 2/BankingSA20.03,000.04,738.7299
Banque Malienne de Crédit et de Dépôts (BMCD) 3/BankingSA100.01,000.04,709.0209
Banque Nationale de Développement Agricole (BNDA) 2/BankingSEM39.54,149.45,259.3118
Société des Chèques Postaux et de la Caisse d’Epargne (SCPCE)Postal checkingSA51.81,350.0251.040
Caisse Nationale d’Assurance et de Réassurance (CNAR)InsuranceSE100.050.02,799.078
Editions Imprimerie du Mali-SA (EDIM)PrintingSEM10.0150.0300.642
Entreprise Malienne de Maintenance (EMAMA)Agric. equipmentSEM62.4311.0147.950
Compagnie Malienne des Textiles (COMATEX)TextilesSEM20.01,500.04,077.1844
Industrie Textile du Mali (ITEMA)TextilesSEM20.01,500.02,820.0778
Société Malienne de Produits Chimiques (SMPC)Agro-chemicalsSEM20.0700.01,482.466
Société Nationale des Tabacs et Allumettes du Mali (SONATAM)Cigarette productionSE100.01,747.714,754.0733
Usine Malienne de Produits Phannaceutiques (UMPP)Pharmaceutical prod.SE100.02,551.13,446.5187
Abattoirs Frigorifiques de Bamako (AFB)MeatpackingEPIC100.0907.2278.6121
Compagnie Malienne pour le Développement des Textiles (CMDT)Cotton prod./proc.SEM60.01,000.0146,766.12293
Huilerie Cotonniére du Mali (HUICOMA)Oilseed processingSEM40.01,500.010,084.0603
Office du Niger (ON)Irrigation servicesEPIC100.0240.81,727.0365
Société Malienne des Conserves (SOMACO)Fruit concentratesSA20.0300.0795.045
Complexe Sucrier du Kala Supérieur-SA (SUKALA)Sugar productionSEM40.05,000.07,361.01145
Energie du Mali (EDM)Electricity/waterSEM97.22,500.022,867.31270
Office pour I’Exploitation des Ressources Hydrauliques du
Haut Niger(OERHN)4/Infrastructure devel.EPIC100.0347.64,321.0100
Société des Mines de Loulo (SOMILO)Gold miningSEM20.02,133.00.00
Société des Mines d’Or de Syama (SOMISY-SA) 4/Gold miningSA20.012.519,646.9106
Société Nationale de Recherche et d’Exploitation des Ressources
Minières(SONAREM)4/Mining res./devel.EPIC100.0170.8235
Air Mali-SAAir transportSA10.0500.01,074.661
Aéroports du Mali (ADM)Airport managementEPIC100.01,652.9856.0184
Compagnie Malienne de Navigation (COMANAV)River transportSE100.01,566.9567.0135
Régie des Chemins de Fer du Mali (RCFM)RailroadEPIC100.02,945.111,200.92128
Société Navale Malienne (SONAM)Maritime trafficSEM5.2261.810
Agence de Cessions Immobilières (ACI)Housing developmentSEM50.012.5300.019
Opération Puits (OP)Well constructionODR100.081
Société d’Equipement du Mali (SEMA)Real estateSEM20.0161.8632.940
Office des Produits Agricotes du Mali (OPAM)Food aidEPIC100.078.5341.6211
Pharmacie Populaire du Mali (PPM)Pharmaceutical dist.EPIC100.0400.03,845.0272
Office des Relais Touristiques (ORT)HotelsEPIC100.02,365.9
Office National des Postes (ONP)Postal systemEPIC100.02,249.9903.0525
Société des Télécommunications du Mali (SOTELMA)Telecom servicesSE100.08,792.019,775.01308
Centre d’Assistance aux Projets Entreprises et Sociétés (CAPES)Feasibility studiesEPIC100.0213.5192.444
Société du Pari Mutuel Urbain (PMU-Mali)GamblingSEM75.0300.0196.141
Mali Timbouctou Air Service (MALITAS)Travel agencySA28.3265.422.410
Centre de Services de Production Audiovisuelle (CESPA)Educational filmsEPIC100.0119.9110.037
Total52,570.5302,188.014,884
Total nonfinancial41,921.1283,429.014,089
Source: Bureau des Entreprises Publiques.

Excluding share held by the BCEAO.

In 1995, Crédit Lyonnais sold its 50 percent share to the Malian government.

Excluding temporary personnel.

Turnover is based on 1994 data.

Source: Bureau des Entreprises Publiques.

Excluding share held by the BCEAO.

In 1995, Crédit Lyonnais sold its 50 percent share to the Malian government.

Excluding temporary personnel.

Turnover is based on 1994 data.

Since 1992, the PE sector has accounted for nearly 10 percent of total value added in the economy, down significantly from 22 percent in 1985, prior to the start of the PESAP. Similarly, credit to PEs accounts for 10–25 percent of credit to the economy, as against 70 percent in the early 1980s. 3/

In addition to their remaining the sole providers of key public services, such as electricity, water, rail transport, and telecommunications, PEs are also the largest operators in such sectors as textiles, pharmaceuticals, and tobacco products. Moreover, PEs remain dominant in the area of agricultural processing, a sector that has become increasingly important since the 1994 devaluation of the CFA franc as the competitiveness of these activities has improved. In particular, cotton ginning is carried out exclusively by CMDT, by far the largest public enterprise; HUICOMA is the largest processor of oilseeds and producer of soaps; and SOMACO, a relatively small enterprise, is nonetheless the largest firm in Mali operating in the increasingly promising sector of fruit and vegetable processing. Together, these three enterprises represent 56 percent of the turnover of the nonfinancial PE sector and 21 percent of employment.

4. Aggregate results of the public enterprise sector. 1992–95 1/

a. Financial results

The financial position of the public enterprise sector has improved substantially during the 1992–95 period. Most notably, the aggregate operating results 2/ for the largest enterprises turned sharply positive in 1994, from a deficit of CFAF 7.3 billion in 1993 to a surplus of CFAF 31.1 billion in 1994, following the devaluation of the CFA franc (Table 4). 3/4/ The aggregate operating results improved further in 1995, to CFAF 43.1 billion. The net result, which includes non-operating revenues and expenses, did not improve until 1995 due to exceptional charges in 1994 related to the devaluation. 5/ No significant differences are found in comparing the results of enterprises wholly owned by the government to those of enterprises partly owned by private shareholders. In particular, both types of enterprises recorded substantial gains following the devaluation.

Table 4.Mali: Selected Indicators for the Public Enterprise Sector, 1991–95 1/
19911992199319941995
(In billions of CFA francs)
Total sales151.4144.9137.7205.8256.4
Value added50.050.543.994.6109.8
Operating result-2.6-2.0-7.331.143.1
Net result-2.31.5-1.328.7
Personnel costs 2/18.420.419.521.523.2
Investments10.618.58.311.520.6
Subsidies1.32.22.84.01.3
Taxes and duties10.415.014.519.818.5
Dividends paid0.41.00.5
Medium-and long-term debt68.265.865.1100.3113.3
Personnel (number of employees) 2/11,906.011,718.011,378.012,680.012,528.0
(In percent of GDP)
Total sales22.219.218.220.020.8
Value added7.36.75.89.28.9
Operating result-0.4-0.3-1.03.03.5
Net result-0.30.2-0.12.3
Personnel costs 2/2.72.72.62.11.9
Investments1.52.51.11.11.7
Subsidies0.20.30.40.40.1
Taxes and duties1.52.01.91.91.5
Dividends paid0.10.10.1
Medium-and long-term debt10.08.78.69.89.2
Source: Bureau des Entreprises Publiques.

Aggregate results for ITEMA, COMATEX, SMPC, SONATAM, UMPP, CMDT, HUICOMA, SUKALA, EDM, OERHN, COMANAV, RCFM, PPM, ORT, and SOTELMA.

Includes temporary personnel.

Source: Bureau des Entreprises Publiques.

Aggregate results for ITEMA, COMATEX, SMPC, SONATAM, UMPP, CMDT, HUICOMA, SUKALA, EDM, OERHN, COMANAV, RCFM, PPM, ORT, and SOTELMA.

Includes temporary personnel.

After falling between 1991 and 1993, both total sales and value added of the sector expressed as a percentage of GDP increased through 1995, with value added of the 15 largest, enterprises reaching 9 percent of total value added in the economy in 1995. Investment by PEs in 1995 rebounded from levels in 1994 when, immediately following the devaluation, enterprises were more reticent to undertake investment projects. Regarding labor costs, wage rates in the PE sector are tied to civil service wages. Thus, the general wage increases of 10 percent in April 1994 and 5 percent in October 1994 are reflected in rising personnel costs in 1994 and 1995, of 11 percent and 8 percent, respectively. These rising personnel costs are also partly due to increased temporary employment in the FEs engaged in agriculture-related activities.

Government subsidies increased to CFAF 4 billion in 1994, before falling to CFAF 1.3 billion in 1995, about 0.4 percent of total government expenditure. The high level of subsidies in 1994 reflects payments made to selected public enterprises in compensation for delays in price increases following the devaluation, particularly for pharmaceutical products, transport services, and utilities. 1/ Taxes and duties paid by PEs, but excluding those realized from CMDT, remained at about 2 percent of GDP between 1992 and 1994, representing about 14 percent of total government revenue. In 1995, taxes and duties paid by the largest PEs fell to 1.5 percent of GDP or 10.4 percent of total revenues. 2/

b. Savings -investment balance of the PE sector

In line with the improved financial performance of the PE sector since 1994, PE sector savings have increased significantly (Table 5), and the savings-investment (S-I) balance of the sector turned from a small deficit to a surplus in 1994. 3/ An S-I surplus of the PE sector reflects the ability to finance debt service and future investment. Similarly, a deficit indicates the amount of financing needed through domestic or foreign borrowing, budgetary transfers, or payments arrears.

Table 5.Mali: Savings-Investment Balance, 1991–95 1/
19911992199319941995
(In billions of CFA francs)
Savings43.733.548.769.2124.7
Government10.2-0.37.314.541.5
Nongovernment33.533.841.454.783.2
PE sector 2/10.59.94.043.654.5
Private23.023.937.411.128.7
Investment155.6165.0165.4272.6320.1
Government82.771.570.3133.8154.4
Nongovernment72.993.595.1138.8165.7
PE sector10.618.58.311.520.6
Private62.475.086.8127.3145.1
Resource gap-111.9-131.5-116.7-203.4-195.4
S-I balance, government sector-72.5-71.8-63.0-119.3-112.9
S-I balance, nongovernment sector-39.4-59.7-53.7-84.1-82.5
S-I balance, PE sector-8.5-4.332.233.9
S-I balance, Private sector-39.4-51.2-49.4-116.3-116.4
(In percent of GDP)
Savings6.44.46.46.710.1
Government1.51.01.43.4
Nongovernment4.94.55.55.36.8
PE sector 2/1.51.30.54.24.4
Private3.43.25.01.12.3
Investment22.821.921.926.526.0
Government12.19.59.313.012.5
Nongovernment10.712.412.613.513.5
PE sector1.52.51.11.11.7
Private9.110.011.512.411.8
Resource gap-16.4-17.5-15.5-19.8-15.9
S-I balance, government sector-10.6-9.5-8.3-11.6-9.2
S-I balance, nongovernment sector-5.8-7.9-7.1-8.2-6.7
S-I balance, PE sector-1.1-0.63.12.8
S-I balance, Private sector-5.8-6.8-6.5-11.3-9.5
Memorandum item:(In billions of CFA francs)
GDP at current market prices682.1753.5755.11028.71231.3
Source: Malian authorities; staff estimates.

Figures for the PE sector are based on aggregage results for ITEMA, COMATEX, SMPC, SONATAM, UMPP, CMDT, HUICOMA, SUKALA, EDM, OERHN, COMANAV, RCFM, PPM, ORT, and SOTELMA.

Gross savings, inclusive of depreciation.

Source: Malian authorities; staff estimates.

Figures for the PE sector are based on aggregage results for ITEMA, COMATEX, SMPC, SONATAM, UMPP, CMDT, HUICOMA, SUKALA, EDM, OERHN, COMANAV, RCFM, PPM, ORT, and SOTELMA.

Gross savings, inclusive of depreciation.

The improved savings performance partially reflects the impact of the devaluation, which, in conjunction with the reforms instituted over preceding years to improve management, contain payrolls, and adopt realistic pricing, resulted in a substantial improvement in the cost structure facing many enterprises and sectors. The cotton, oilseed processing, and textile sectors greatly benefited from improved world prices of their products and less competition from imports.

The data also indicate that, despite the limitations of the reforms pursued under the PESAP, and the imbalances that continued to exist at several large firms (notably, the utilities and transport firms), for the PE sector as a whole, the S-I balance over the 1991–93 period was substantially reduced from levels observed in the 1980s. This result is not surprising given that, following the PESAP, sources of financing PE deficits largely disappeared, requiring a containment of spending at the enterprise level. In particular, thanks to greater fiscal restraint, the scope for budgetary transfers was sharply reduced and less allowance was made for the accumulation of cross-debts or arrears. Following the problems of external payments arrears in previous years, foreign borrowing was largely restricted to selected publicly guaranteed concessional loans. 1/ In the context of the financial sector reforms under the PESAP, the ability of PEs to mobilize resources on the domestic financial market was significantly reduced. The limited use of bank financing is shown by the declining level of medium- and long-term debt over the 1991–93 period, indicating net debt repayments by the PEs. 2/

One consequence of this restriction on sources of finance for the PE sector is that there is not the close link between the S-I balance of the government and the S-I balance of the PE sector often observed in countries where large budgetary transfers are used to cover the deficits of the PE sector. The S-I balances of both the PE sector and the government improved between 1991 and 1995, but the causes are not directly related: PE savings increased because of the reasons mentioned above, while government savings increased because of a broadened tax base and significant improvements in tax administration, combined with prudent spending policies. 3/

The estimate of the S-I balance of the PE sector permits a more precise estimate of the S-I balance of the private sector. In the national accounts of Mali, the production and income of the PEs are included in the “non- government” sector together with the private sector, 4/ Thus, the S-I balance of the nongovernment sector can be split into two components, one corresponding to the PE sector and the other corresponding to the private sector. 5/6/ As shown in Table 5, the S-I deficit of the private sector widened following the devaluation in 1994, largely because of an initial drop in savings, coupled with higher investment levels related to expanding activity in the mining sector.

c. Public sector borrowing requirement

The aggregated accounts of the PE sector can also be used to estimate a broader measure of the public sector cash balance and of the public sector borrowing requirement. The combined PE sector/government deficit is shown in Table 6. 1/ Over most years shown, the contribution of the PE sector balance to the combined PE sector/government deficit is minor relative to the size of the fiscal deficit. However, in 1995, the overall surplus of the PE sector was more than 2 percent of GDP, which had a sizable impact in reducing the broader public sector borrowing requirement.

Table 6.Mali: Public Sector Borrowing Requirement, 1991–95
19911992199319941995
(In billions of CFA francs)
Consolidated public sector balance-30.1-26.5-21.0-74.4-22.0
Of which: Central government balance
(cash basis, including grants)-30.1-24.2-22.5-73.1-50.7
Balance of selected public enterprises 1/-2.31.5-1.328.7
(ln percent of GDP)
Consolidated public sector balance-4.4-3.5-2.8-7.2-1.8
Of which: Central government balance
(cash basis, including grants)-4.4-3.2-3.0-7.1-4.1
Balance of selected public enterprises 1/-0.30.2-0.12.3
Source: Malian authorities; staff estimates.

Consolidated net results of the 15 largest public enterprises.

Source: Malian authorities; staff estimates.

Consolidated net results of the 15 largest public enterprises.

5. Planned reforms

The reforms pursued over the 1992–96 period constituted the “second phase” of the Malian authorities’ PE reform program, which, as noted above, progressed more slowly relative to the period covered by the PESAP.. The pace of public enterprise reform is expected to pick up, following adoption in June 1996 of an action plan that articulates the authorities’ strategy and identifies specific steps and a timetable for implementation.

As stated in the action plan, the authorities’ reform objectives are to: (i) progressively reduce the government’s portfolio so that the government maintains a presence only in enterprises considered as strategic; (ii) restructure and strengthen the management of those enterprises remaining in the public portfolio; and (iii) use the privatization process as a means of promoting private sector investment. The action plan also sets out additional actions necessary for the satisfactory implementation of the program, including the putting in place of an appropriate judicial framework, the strengthening of the BEP to monitor the program, the definition of strict criteria for the disengagement of the government, and the implementation of a public information campaign to strengthen public and PE employees support for the program.

Regarding the legal framework governing divestiture operations, the action plan proposes modifying the August 1994 law defining the procedures under which privatizations will be carried out. The revised law would ease the transfer of government ownership in mixed capital companies (SEMs), allow industiral or commercial public institutions (EPICs) to be privatized directly without first requiring they be dissolved by an act of the National Assembly, centralize under the Ministry of Finance and Commerce the control of all enterprises to be privatized, and permit privatizations to be undertaken by decree rather than by passing a law as is currently required.

The action plan envisages total privatization of eight enterprises, partial privatization of three others, the putting up for concession of a major hotel, and the sale of various government assets from previously liquidated firms (Table 7). In addition, the action plan envisages the restructuring of seven enterprises and the use of performance contracts for a number of other PEs that will remain in the public portfolio. The impact of the privatizations included in the action plan on the overall size of the PE sector would be relatively minor: the capitalization of the sector would be reduced by about 7 percent and turnover would be reduced by 3 percent. Employment in the PE sector would drop by about 1,100 workers, or 8 percent of total PE employment. Although accurate estimates are difficult to make, receipts from the total and partial privatizations envisaged in the program could total as much as CFAF 10 billion over the 1996/97 period.

Table 7.Mali: Action Plan for the Public Enterprise Sector, 1996–98
EnterpriseAction envisagedProposed timetable
BMCDPartial privatization1997
SONATAMPartial privatization (35 percent)1996
AFBSale of 80 percent of shares1996
CNARTotal privatization1996
EMAMATotal privatization1996
EDIMTotal privatization1996/97
ITEMATotal privatization1996/97
SMPCTotal privatization1996/97
SOMACOTotal privatization1996/97
SEMATotal privatization1996/97
MALITASTotal privatization1996/97
ORTPrivatization/lease to private sector 1/1996/97
SCPCERestructuring/conversion into housing finance institution1997
Office du NigerRestructuring/privatization of assets1996
OERHNRestructuring1996
SONAREMRestructuring1997
SONAMRestructuring1996
OPRestructuring1996
CAPESRestructuring/transformation into investment promotion agency1996
Source: Bureau des Entreprises Publiques.

ORT controls three hotels, two of which will be sold; the third (Hôtel de l’Amitié) will be leased.

Source: Bureau des Entreprises Publiques.

ORT controls three hotels, two of which will be sold; the third (Hôtel de l’Amitié) will be leased.

Despite the adoption of the action plan, implementation of the PE reform program is likely to face serious challenges. Carrying out the divestiture of PEs in Mali has proved politically difficult, primarily owing to worker opposition. At the same time, the authorities’ concern that the social objectives of the PEs be maintained following privatization diminishes the appeal of the enterprises to private investors. For example, buyers of privatized enterprises are required to keep all employees on the payroll at least one year; otherwise, they must pay a severance package worth three years of wages. Such constraints impose costs and lessen the market value of the enterprises, thereby complicating the conclusion of privatization operations, particularly when the authorities attribute higher estimated values to enterprises or assets than may be realistic.

For those enterprises remaining in the public sector, the action plan calls for the continued use of performance contracts in the context of restructurings of specific enterprises. While ongoing restructuring operations in key sectors such as electricity and railways are making progress in improving the efficiency of the enterprises concerned, performance contracts in Mali, as in many other countries, have proven to be of limited value. The terms of performance contracts have rarely been adhered to in Mali, either by the enterprises or by the government, and sanctions are seldom invoked. Moreover, the performance contracts have done little to alter the incentives for managers of PEs. In a number of cases, the use of management contracts with private firms might be preferable. Despite their relatively high cost, management contracts in Mali, such as that concluded with the national electricity company EDM in 1995, have proven more successful at improving the efficiency and profitability of PEs.

6. Conclusions and summary

Since 1988, the Malian authorities have made significant progress in reducing the burden of the public enterprise sector on the economy and improving its financial performance. Thirty-one enterprises have been fully divested from the government portfolio since the start of the PESAP, 12 through privatization and 19 through liquidation. The aggregate net operating results of the largest enterprises in the sector have steadily improved, moving from a deficit of 1 percent of GDP in 1985 to a deficit of 0.3 percent of GDP in 1992, before recording a surplus of 2.3 percent of GDP in 1995. 1/ Prior to 1988, the PEs were accumulating payments arrears, whereas by 1995, payments arrears were rare and in most cases quickly settled. The health of the financial system has improved, as nonperforming loans to PEs have been removed from the balance sheet of the BDM, and the PEs have serviced their debt in a timely manner. On the institutional side, the legal procedures for divestiture have been standardized and simplified, and increased capacity has been developed to monitor the PE sector and prepare privatization operations.

In the period ahead, the authorities intend to further reduce the size of the sector while continuing to strengthen enterprise management and efficiency. Political and worker opposition remains an obstacle and is likely to continue posing an obstacle to the reform program, given that divestiture operations are expected to entail further retrenchment of personnel, which cannot be easily absorbed by the private sector. Nonetheless, the authorities should press ahead with the reform program to privatize or liquidate those enterprises in areas where the government has no compelling reason to be involved, and to strengthen those enterprises remaining in the public sector. In the period ahead, the authorities will need to be realistic about the valuation of specific enterprises and the measures required to ensure the success of restructuring operations. In particular, attaching conditions to the sale of enterprises which restrict a firm’s production and personnel decisions reduces the potential profitability of given enterprises and thus reduces their value to a potential buyer. Such conditions also undermine the use of privatizations to attract private investment. Similarly, for enterprises that are to be restructured, the increased use of private managers will only be successful in improving efficiency if the managers are permitted to run the enterprises on a commercial basis, with complete freedom to make necessary but sometimes difficult decisions on production and employment.

Statistical Annex
Table 1.Mali: Gross Domestic Product at Constant 1987 Prices, 1991–95 1/
19911992199319941995
Estimates
(In billions of CFA francs)
Primary sector289.6333.6305.3328.2358.0
Food crops113.9156.3119.0142.9159.9
Industrial crops 2/49.449.452.944.453.2
Livestock83.083.788.093.396.1
Fishing9.59.49.49.810.0
Forestry33.834.836.037.838.8
Secondary sector104.0109.2113.3114.6123.5
Industry40.044.346.947.851.4
Mining14.215.515.414.015.4
Handicrafts17.516.116.817.318.0
Construction and public works32.433.334.335.538.7
Tertiary sector226.4233.3240.7234.6238.8
Transportation32.432.233.332.433.1
Trade105.5113.1117.6116.8120.2
Other services43.544.346.251.253.1
Public administration49.548.148.138.036.1
Other-4.6-4.6-4.6-3.8-3.7
GDP (at factor cost)619.9676.1659.3677.4720.3
Import taxes35.334.034.031.634.2
GDP (at market prices)655.2710.1693.3709.1754.4
(Annual percentage change)
Primary sector-5.415.2-8.57.59.1
Food crops-18.437.2-23.820.111.9
Industrial crops 2/17.80.17.1-16.119.7
Livestock-0.40.95.16.03.0
Fishing12.7-1.45.02.0
Forestry3.03.23.35.12.6
Secondary sector12.75.03.81.27.7
Industry5.110.95.72.17.5
Mining27.69.2-0.6-9.010.0
Handicrafts4.7-7.64.12.84.0
Construction and public works22.32.73.03.69.0
Tertiary sector-0.53.13.2-2.61.8
Transportation7.3-0.43.3-2.62.0
Trade-0.77.24.0-0.72.9
Other services0.51.94.210.73.8
Public administration-5.6-2.8-21.0-5.0
Other-0.80.4-15.7—3.5
GDP (at factor cost)-1.09.1-2.52.86.3
Import taxes0.1-3.7-7.08.0
GDP (at market prices)-0,98.4-2.42.36.4
Memorandum item:
Compound annual growth of
real per capita GDP, 1982–92-0.7
Sources: Data provided by the Malian authorities; and staff estimates.

Data may not add up because of rounding.

Includes cotton, groundnuts, tobacco, fruits, vegetables, and others. Cotton accounted for approximately 85 percent at the total over the period 1991–95.

Sources: Data provided by the Malian authorities; and staff estimates.

Data may not add up because of rounding.

Includes cotton, groundnuts, tobacco, fruits, vegetables, and others. Cotton accounted for approximately 85 percent at the total over the period 1991–95.

Table 2.Mali: Origin and Use of Resources, 1991–95 1/
19911992199319941995
Estimates
(In billion Of CFA francs)
Gross domestic product682.1753.5755.11,028.71,231.3
Consumption638.4720.0706.5959.51,106.6
Public99.4101.097.4124.4135.8
Private539.0619.0609.1835.1970.8
Domestic savings43.733.548.769.2124.7
Investment155.6165.0165.4272.6320.1
Public82.771.570.3133.8154.4
Private72.993.595.1138.8165.7
Resource gap-111.9-131.5-116.7-203.4-195.4
Exports of goods and nonfactor services124.6116.5120.1223.3274.1
Imports of goods and nonfactor services-236.5-248.0-236.8-426.7-469.5
(In percent of GDP)
Gross domestic product100.0100.0100.0100.0100.0
Consumption93.695.693.693.389.9
Public14.613.412.912.111.0
Private79.082.180.781.278.8
Domestic savings6.44.46.46.710.1
Investment22.821.921.926.526.0
Public12.19.59.313.012.5
Private10.712.412.613.513.5
Resource gap-16.4-17.5-15.5-19.8-15.9
Exports of goods and nonfactor services18.315.515.921.722.3
Imports of goods and nonfactor services-34.7-32.9-31.4-41.5-38.1
Memorandum items:(In billions of CFA francs)
Current account deficit (excl.off.grants)-101.2-122.8-97.6-182.6-180.2
of which private transfers(19.7)(19.6)(26.5)(47.1)(47.8)
Official transfers89.694.967.3136.9111.4
Net factor income-9.0-10.9-7.4-26.4-32.6
National savings54.442.267.890.0139.9
(In percent of GDP)
Current account deficit (excl. off. grants)-14.8-16.3-12.9-17.8-14.6
of which private transfers(2.9)(2.6)(3.5)(4.6)(3.9)
Official transfers13.112.68.913.39.0
Net factor income-1.3-1.4-1.0-2.6-2.6
National savings8.05.69.08.711.4
Sources: Data provided by the Malian authorities; and staff estimates.

Data may not add up because of rounding.

Sources: Data provided by the Malian authorities; and staff estimates.

Data may not add up because of rounding.

Table 3.Mali: Agricultural Production, Marketing, and Official Producer Prices, 1990/91–1995/96 1/
1990/911991/921992/931993/941994/951995/96
Prel.
(In thousands of metric tons)
Production (gross)
Cotton317313353276315406
Groundnuts178184127148215157
Millet/sorghum/maize1,4651,9171,3771,7681,9661681
Paddy rice282454410428469463
Marketing 2/
Cotton276272307240277364
Groundnuts3739
Millet/sorghum/maize9491131
Paddy rice22472892
(In CFA francs per kilogram)
Official producer prices
Cotton 3/85858585125125
Paddy rice7070707894124
Source: Data provided by the Malian authorities.

The crop year is April/March; the marketing year is November/October.

Official agencies.

Floor price of first quality cotton.

Source: Data provided by the Malian authorities.

The crop year is April/March; the marketing year is November/October.

Official agencies.

Floor price of first quality cotton.

Table 4.Mali: Careals—Cultivated Araa and Rainfall, 1990/91–1995/96
Average1990/911991/921992/931993/941994/951995/96
Est.Est.
(In thousands of hectares)
Cultivated area
Millet/sorghum1,4232,0221,6851,9942,3772,3802,137
Deviation1/(42)(18)(40)(67)(67)(50)
Maize97170186192257284205
Deviation1/(75)(92)(98)(165)(193)(172)
Paddy rice159197209196246284303
Deviation1/(24)(31)(23)(54)(78)(90)
(In millimeters; April-October)2/
Rainfall
Millet/sorghum720645636649553593525
Deviation1/(-10)(-12)(-10)(-23)(-18)(-27)
Maize8809401,3461,3821,1481,2081,033
Deviation1/(7)(53)(57)(30)(37)(17)
Paddy rice557501376425358386399
Deviation1/(-10)(-33)(-24)(-36)(-31)(-28)
Sources: Data provided by the Malian authorities and staff estimates.

Deviation in percent from the annual average of the 1960–90 period.

The rainfall is measured for the specific area where each cereal is grown.

Sources: Data provided by the Malian authorities and staff estimates.

Deviation in percent from the annual average of the 1960–90 period.

The rainfall is measured for the specific area where each cereal is grown.

Table 5.Mali: Quarterly Retail Prices for Cereals, 1990–96 1/(In CFA francs Per kilogram)
Millet/SorghumMaizeRice (RM 40)
Annual averages
199090.982.0196.3
199189.081.3207.0
199276.574.3188.3
199381.576.0185.0
199477.375.5218.8
1990
I70.068.0179.0
II80.574.0184.0
III102.091.0202.0
IV111.095.0220.0
1991
I101.091.0220.0
II95.080.0208.0
III80.080.0200.0
IV80.074.0200.0
1992
I75.076.0191.0
II75.075.0189.0
III76.075.0189.0
IV73.071.0184.0
1993
I72.769.3183.0
II78.572.7181.7
III94.387.0188.0
IV81.373.0188.7
1994
I76.072.0195.0
II76.574.0206.0
III78.079.0234.0
IV78.577.0240.0
1995
I88.098.0227.0
II91.5112.0264.0
III132.0127.0274.0
IV127.0122.0270.0
1996
I114.0114.0254.0
II151.0144.0277.0
Source: Data provided by the Malian authorities.

Free market prices represent the average of prices prevailing in the 13 markets of Bamako.

Source: Data provided by the Malian authorities.

Free market prices represent the average of prices prevailing in the 13 markets of Bamako.

Table 6.Mali: Office du Niger—Indicators of Activity, 1989/90–1995/96
Cultivated landProduction
RicePaddy rice
HarvestedMarketed by ON
(In hectares)(In metric tons)
1989/9044,207125,02556,563
1990/9145,168130,67018,166
1991/9246,034183,41842,418
1992/9344,843208,54127,000
1993/9445,442210,0001/
1994/9546,740209,9791/
1995/9650,911238,8031/
Source: Data provided by the Malian authorities.

The marketing of rice by the Office du Niger has stopped since the 1993/94 crop year, following the reform of the institution.

Source: Data provided by the Malian authorities.

The marketing of rice by the Office du Niger has stopped since the 1993/94 crop year, following the reform of the institution.

Table 7.Mali: Implementation of the Public Investment Program, 1991–95 1/
Implement-
2/ tation
199119921993199419951994–95
(In billions of CFA francs)
Rural development27.629.927.844.153.176.5
Agriculture21.724.922.535.843.180.3
Livestock2.92.32.53.54.347.0
Fisheries0.10.10.178.1
Forestry2.82.62.84.75.785.9
Secondary sector9.49.16.623.120.990.4
Mines and geology0.50.60.81.10.548.1
Water3.16.13.514.513.4121.5
Energy5.22.42.27.36.964.5
Industry and handicrafts0.40.10.20.2156.1
Tourism010.0
Infrastructure9.813.117.820.824.285.2
Roads5.27.611.18.913.170.0
Railroads0.11.20.51.60.129.8
Air transport and metereology0.50.90.80.70.674.1
Post and telecommunications2.31.01.21.93.8110.1
Surveying and napping0.10.1109.9
Buildings and equipment0.50.92.45.64.6165.6
Urban development and housing1.11.41.72.01.7182.4
Transport and storage0.10.283.3
Human resources9.110.913.633.839.2102.6
Employment1.21.33.04.26.7120.3
Education1.74.33.07.69.995.8
Sports, arts, and culture0.30.20.10.40.4132.5
Health4.53.54.011.011.881.7
Information0.50.50.61.00.6107.2
Administration0.91.12.99.69.9140.3
Total55.963.065.8121.8137.486.5
Source: Data provided by the Malian authorities.

Data may not add up because of rounding.

In percent of programmed amount.

Source: Data provided by the Malian authorities.

Data may not add up because of rounding.

In percent of programmed amount.

Table 8.Mali: 1994 Investment Budget and 1995–97 Public Invaatmant Program 1/2/(In billions of CFA francs)
19941995199619971995–97
Rural davalopment56.767.161.437.5166.0
Agricultura41.153.548.330.7132.5
Livestock8.87.47.72.317.4
Fisharias0.10.10.2
Forestry6.86.15.34.515.9
Secondary sector21.727.424.416.468.2
Mines1.91.41.10.63.2
Water11.712.110.97.430.4
Energy8.013.612.18.234.0
Industry0.10.10.10.3
Tourism0.10.10.20.10.4
Infrastructure21.830.133.915.779.7
Roads10.820.526.28.655.3
Railroads1.82.64.96.213.7
Air transport1.20.80.31.1
Post & telecommunications2.62.80.53.3
Surveying0.10.10.1
Buildings3.52.71.70.44.8
Urban development1.80.30.3
Transport and storage0.20.30.51.0
Human resources36.142.733.726.0102.4
Employment5.03.63.67.2
Education9.09.58.17.425.1
Sports, arts0.40.30.10.4
Health11.516.617.816.450.8
Information0.81.01.80.93.8
Administration9.411.52.31.315.1
Total136.4167.3153.495.6416.3
Financing136.4167.3416.3
External financing112.5140.8358.1
Loans56.074.2185.3
Grants56.566.6172.8
Domestic financing23.926.558.2
Budget17.620.040.5
Self-financing5.05.214.3
Other1.21.33.3
Source: Data provided by the Malian authorities.

Data differ from those included in tables on Government Financial Operations, as an implementation rate of less than 100 percent is assumed in the projections.

Data may not add up because of rounding.

Source: Data provided by the Malian authorities.

Data differ from those included in tables on Government Financial Operations, as an implementation rate of less than 100 percent is assumed in the projections.

Data may not add up because of rounding.

Table 9.Mali: Livestock Exports, Slaughtering, and Herd Site, 1991–95(In thousands of head)
19911992199319941995 1/
CattleSheep and goatsCattleSheep and goatsCattleSheep and goatsCattleSheep and goatsCattleSheep and goats
Exports190410195450205272440738418925
Controlled431645921341128176340107426
Uncontrolled147246136237164144264398311499
Slaughtering4251.9805552.0135281.9505311.9125472008
Controlled169336193335185312186306192321
Uncontrolled2561,6443621,6783431,6383451,6063551686
Estimated herd size (end of period)5,09210,8995,24511,4505,38011,9545,54212,552570813179
Memorandum items:
Net birth rate7113,1179033,0148682,7261,1323,24811313560
Offtake rates (in percent)10.815.612.517.712.015.714.917.414.518.2
Source: Data provided by the Malian authorities.

Provisional data.

Source: Data provided by the Malian authorities.

Provisional data.

Table 10.Mali: Index of Industrial Production, 1991–95
19911992199319941995
Prel.
(1983–100)
Chemicals and construction
materials115.3120.7114.0116.9138.0
Energy and machinery171.0180.0158.6180.1212.7
Food processing124.4150.6133.8178.4133.7
Textiles109.2155.0129.3129.6166.2
Overall index125.0153.6133.9155.9156.8
(Percentage change)
Chemicals and construction
materials-20.84.7-5.62.518.0
Energy and machinery0.65.3-11.913.618.1
Food processing-13.321.1-11.233.3-25.0
Textiles-20.441.9-16.60.228.2
Overall index-14.022.9-12.816.40.6
Source: Data provided by the Malian authorities.
Source: Data provided by the Malian authorities.
Table 11.Mali: Quarterly Index of Consumer Prices in Bamako, 1993–96(July 1986-June 1987 = 100)
1993199319941994199519951996
IIIIIIIV(Annual)IIIIIIIV(Annual)IIIIIIIV(Annual)III
Food96.099.5105.9101.5100.5114.2123.7137.1135.2127.6132.1145.2153.5154.1146.2149.6162.2
Clothing104.4103.8102.3102.5103.3114.0119.3127.7129.6122.6137.7147.3148.0152.7146.4156.1158.7
Housing, water, and energy115.1115.5116.8112.8115.2121.5124.9126.5129.6125.6131.8135.7136.4133.2134.3132.8137.7
Furniture and household articles114.6115.0115.2114.8114.9128.9138.1137.9138.4135.8138.2141.2143.1145.1141.9144.1145.0
Health108.1106.1103.6103.8105.4125.6137.8142.8144.6137.7144.5150.8155.7156.6151.9156.8159.0
Transport and communications107.4107.6107.9107.9107.7128.9146.7151.1153.0139.8153.1154.4154.8154.6154.2154.6154.3
Leisure and entertainment127.4126.1123.8123.8125.3129.7141.5148.3149.5142.3150.9149.6151.0151.5150.8155.6158.1
Other goods and services112.2113.4115.8115.9114.3134.5141.2151.8152.7145.1152.8155.1155.0160.1155.7164.2172.0
Total 1/103.0104.4107.0104.2104.7118.6128.2137.9137.7130.6137.3146.4151.2152.1146.8150.3158.2
Source: Data provided by the Malian authorities.

Weighted total.

Source: Data provided by the Malian authorities.

Weighted total.

Table 12.Mali: Evolution of Minimum Wages and Salaries in the Public Sector, 1990–95(In CFA francs per month)
199019911992199319941995
Mar.Apr.Oct.
Contractual workers
Minimum wage for unskilled
agricultural workers (SMAG)11.69018,19018.19018.19019,97021.01521.015
Basic wage8,4408,4408,4408,44010,22011,26511,265
Special allowance1,0001,0001,0001,0001,0001,0001,000
Cost of living allowance2,2502,2502,2502,2502,2502,2502,250
Solidarity allowance6,5006,5006,5006,5006,5006,500
Minimum wage for unskilled
workers outside agriculture (SMIG)12,73019,23019.23019.23020,35020,96520.965
Basic wage9,4039,4039,4039,40310,52311,13811,138
Special allowance1,0001,0001,0001,0001,0001,0001,000
Cost of living allowance2,2502,2502,2502,2502,2502,2502,250
Adjustment of March 198077777777777777
Solidarity allowance6,5006,5006,5006,5006,5006,500
Government employees
Grade 10025.02531.52531.52531.52532,60033.80033,800
Base salary22,52522,52522,52522,52523,60024,80024,800
Housing allowance1,5001,5001,5001,5001,5001,5001,500
Special allowance1,0001,0001,0001,0001,0001,0001,000
Solidarity allowance6,5006,5006,5006,5006,5006,500
Grade 31669,36871,36871,36871,36878,07681,86881,868
Base salary67,86867,86867,86867,86874,57678,36878,368
Housing allowance1,5001,5001,5001,5001,5001,5001,500
Solidarity allowance2,0002,0002,0002,0002,0002,000
Grade 650141,103143,103143,103143,103156,900164.700164,700
Base salary139,603139,603139,603139,603153,400161,200161,200
Housing allowance1,5001,5001,5001,5001,5001,5001,500
Solidarity allowance2,0002,0002,0002,0002,0002,000
Source: Data provided by the Malian authorities.
Source: Data provided by the Malian authorities.
Table 13.Mali: Evolution of Employment in the Central and Regional Governments and the Public Enterprise Sector, 1991–95
1991199219931994 1/1995
Central and regional governments45,49838,05236,05532,71932,527
Civil servants36,21233,06331,69029,14129,067
Contractual employees and other9,2864,9894,3653,5783,460
Public enterprises 2/8,4458,1607,9027,6997,041
Source: Data provided by the Malian authorities.

Beginning in 1994, excluding 2,129 employees of semi-public institutions no longer on the civil service payroll.

COMANAV, EDM, EMAMA, OERHN, PPM, SEMA, SONATAM, RCFM, ONP, UMPP, ORT, and SOTELMA. (These acronyms are defined in Appendix II)

Source: Data provided by the Malian authorities.

Beginning in 1994, excluding 2,129 employees of semi-public institutions no longer on the civil service payroll.

COMANAV, EDM, EMAMA, OERHN, PPM, SEMA, SONATAM, RCFM, ONP, UMPP, ORT, and SOTELMA. (These acronyms are defined in Appendix II)

Table 14.Mali: Operating Results of Major Public Enterprises, 1991–95 1/(In millions of CFA france:end of period)
EnterpriseActivity19911992199319941995
Prel.
EDMElectricity and water-1,266.9-126.61,453.7710.21,347.4
SONATAMTobacco and matches-273.6209.452.079.575.4
OERHNDam on the Niger River-425.7899.51,531.0-95.12/
PPMPharmaceutical sales594.6201.855.5-85.3- 2/
SEMAPublic works-93.9-75.821.785.228.5
EMAMAMaintenance-82.8-83.6-39.4-51.3-37.0
ITEMATextiles-764.7-854.0-958.43/2/
COMATEXTextiles3/3/3/-13.5735.2
COMANAVInland water transport-449.5-222.3-488.0-404.5-196.3
RCFMRailways-1,359.3-73.6-239.044.5325.9
ONPPostal services-449.1-370.8-253.8-158.12/
UMPPPharmaceutical products193.5217.4141.8495.4236.5
ORTHotels-652.9-478.9-286.42.115.5
SOTELMATelecommunications Services1,658.7219.71,098.52,844.76,200.5
Sources: Data provided by the Malian authorities; and staff estimates.

The list of the acronyms of the enterprises is given in Appendix II.

Data not available

Activity interrupted.

Sources: Data provided by the Malian authorities; and staff estimates.

The list of the acronyms of the enterprises is given in Appendix II.

Data not available

Activity interrupted.

Table 15.Mali: Consolidated Government Operations, 1991–95 1/
19911992199319941995
(In billions of CFA francs)
Revenue and grants165.8154.3146.7236.7269.7
Revenue109.6100.7104.7138.9177.3
Budgetary revenue96.389.194.0126.0160.7
Tax revenue82.478.183.7103.2131.5
Nontax revenue13.911.010.322.829.2
Special funds and annexed budgets13.311.610.712.916.6
Grants56.253.642.097.892.4
Expenditure192.3183.4177.3280.1306.9
Budgetary expenditure169.8161.8161.2268.4291.0
Current expenditure82.086.088.1132.1134.7
Personnel42.441.540.944.548.0
Scholarships4.55.04.84.23.9
Interest 2/12.213.412.223.917.6
Other expenditure22.926.130.259.565.2
Development, FESAP, VDP, and NP 3/87.875.873.1136.3157.2
Development expenditure69.565.567.5128.7152.1
Externally financed64.560.058.5115.0133.5
Loans31.229.028.560.070.5
Grants33.331.030.055.063.0
Domestically financed5.05.59.013.718.6
PESAP and public enterprise reform13.26.02.85.12.3
Voluntary departure program (VDP)5.14.31.40.80.3
National Pact (NP)1.41.72.4
Special funds and annexed budgets11.811.010.511.714.5
Extrabudgetary expenditure2.38.95.6
Reconstruction expenditure8.41.7
Deficit (commitment basis)-26.5-29.1-30.6-43.4-36.6
Changes in payments arrears0.72.48.6-29.7-10.1
Domestic payments arrears-0.4-1.33.6-9.9-10.1
External payments arrears1.13.75.0-19.8
Adjustment (cash basis)-4.32.5-0.5-3.9
Deficit (cash basis)-30.1-24.2-22.5-73.1-50.7
Financing (net)30.124.222.573.150.7
External financing42.232.825.576.790.9
Loans (gross)49.338.730.391.7110.1
Amortisation 2/-30.9-35.3-35.4-66.9-64.0
Debt rescheduling0.73.05.87.12.3
Debt relief from debt cancellation 4/2.32.0
Debt moratoria and debt under negotiation23.226.424.842.540.5
Domestic financing-12.1-8.6-3.0-3.6-40.2
Banking system-10.8-5.4-1.3-4.5-39.6
Other-1.3-3.2-1.70.9-0.6
(In percent of GDP, unless otherwise indicated)
Deficit (commitment basis)
Excluding grants-12.1-11.0-9.6-13.7-10.5
Including grants-3.9-3.9-4.1-4.2-3.0
Deficit (cash basis)
Excluding grants-12.7-10.3-8.5-16.4-11.6
Including grants-4.4-3.2-3.0-7.0-4.1
Memorandum item:
Military spending (CFAF billion) 5/13.515.915.720.724.7
Source: Data provided by the Malian authorities.

Data may not add up because of rounding.

Scheduled; after debt cancellation obtained through 1993.

PESAP, Public Enterprise Sector Adjustment Program, financed by the World Bank and cofinanciers.

Based on the ODA debt cancellation obtained in 1994.

Expenditure by the Ministry of National Defense.

Source: Data provided by the Malian authorities.

Data may not add up because of rounding.

Scheduled; after debt cancellation obtained through 1993.

PESAP, Public Enterprise Sector Adjustment Program, financed by the World Bank and cofinanciers.

Based on the ODA debt cancellation obtained in 1994.

Expenditure by the Ministry of National Defense.

Table 16.Mali: Government Revenue, 1991–95 1/(In billions of CFA francs)
19911992199319941995
Taxes on net income and profits12.012.311.616.226.6
Enterprises5.25.34.85.710.8
Of which: public enterprises(0.9)(1.0)(0.7)(1.3)(0.8)
private enterprises(4.3)(4.3)(4.1)(4.4)(10.0)
Individuals5.45.65.48.614.2
Tax on transporters0.80.80.71.10.6
Rental income tax0.50.60.70.81.0
Payroll tax2.02.12.12.62.5
Property taxes1.41.63.12.63.4
Taxes on goods and services12.812.112.415.017.0
Value-added tax8.98.99.211.813.8
Of which: public enterprises(1.9)(1.7)(2.6)(2.7)(4.5)
private enterprises(7.1)(7.2)(6.6)(9.1)(9.3)
Excise duties1.31.31.01.71.4
Other2.51.82.21.51.8
Taxes on international trade45.143.247.455.173.0
Customs duties2.52.52.62.76.3
Other import charges16.614.816.617.225.9
Value-added tax on imports11.110.811.513.320.8
Petroleum import duties12.013.414.519.217.3
Payment of deferred taxes0.40.21.01.30.7
Export duty 2/0.10.1
Other2.31.41.21.41.9
Other tax revenue9.06.97.111.89.0
Poll tax2.31.70.8
Stamp duties2.22.32.13.64.8
Payment of tax arrears3.82.23.46.52.8
Other taxes0.70.70.81.71.4
Miscellaneous or unclassified
tax revenue0.1
Tax revenue82.478.183.7103.2131.5
Nontax revenue12.610.110.320.021.9
Capital revenue1.30.92.77.3
Budgetary revenue96.389.194.0126.0160.7
Special funds and annexed budgets13.311.610.712.916.6
Total revenue109.6100.7104.7138.9177.3
Source: Data provided by the Malian authorities.

Data may not add up because of rounding. earmarked for special funds, have been consolidated in the budget.

Customs service fee on gold exports.

Source: Data provided by the Malian authorities.

Data may not add up because of rounding. earmarked for special funds, have been consolidated in the budget.

Customs service fee on gold exports.

Table 17.Mali: Government Revenue Performance, 1991–95 1/
19911992199319941995
(In billions of CFA francs)
Taxes on net income and profits12.012.311.616.226.6
Taxes on goods and services12.812.112.415.017.0
Payroll tax2.02.12.12.62.5
Property taxes1.41.63.12.63.4
Taxes on international trade45.143.247.455.173.0
Other tax revenue Miscellaneous or unclassified tax9.06.97.111.89.0
revenue0.1
Tax revenue82.478.183.7103.2131.5
Nontax revenue13.911.010.322.829.2
Budgetary revenue96.389.194.0126.0160.7
Special funds and annexed budgets13.311.610.712.916.6
Total revenue109.6100.7104.7138.9177.3
(Annual percentage change)
Taxes on net income and profits-1.62.5-5.739.764.2
Taxes on goods and services13.3-5.52.521.013.3
Taxes on international trade46.9-4.29.716.232.5
Other tax revenue-9.1-23.32.966.2-12.4
Tax revenue25.0-5.27.223.327.4
Nontax revenue52.7-20.9-6.4121.428.1
Budgetary revenue28.4-7.55.534.027.5
Special funds and annexed budgets-67.6-12.8-7.820.628.7
Total revenue-5.6-8.14.032.727.6
(In percent of budgetary revenue)
Taxes on net income and profits12.513.812.312.916.6
Taxes on goods and services13.313.613.211.910.6
Taxes on international trade46.848.550.443.745.4
Other tax revenue9.37.77.69.49.2
Tax revenue85.687.789.081.981.8
Nontax revenue14.412.311.018.118.2
(In percent of total government revenue)
Budgetary revenue87.988.589.890.790.6
Special funds and annexed budgets12.111.510.29.39.4
(In percent of GDP)
Taxes on net income and profits1.81.61.51.62.2
Taxes on goods and services1.91.61.61.41.4
Taxes on international trade6.65.76.35.35.9
Other tax revenue1.30.90.91.11.2
Tax revenue12.110.411.110.010.7
Nontax revenue2.01.51.42.22.4
Budgetary revenue14.111.812.412.113.1
Special funds and annexed budgets1.91.51.41.21.3
Total revenue16.113.413.913.514.4
Source: Data provided by the Malian authorities.

Data may not add up because of rounding.

Source: Data provided by the Malian authorities.

Data may not add up because of rounding.

Table 18.Mali: Government Expenditure, 1991–95 1/
19911992199319941995
(In billions of CFA francs)
Expenditure192.3183.4177.3280.1306.4
Budgetary expenditure169.8161.8161.2268.4291.9
Current expenditure82.086.088.1132.1134.7
Personnel42.441.540.944.548.0
Supplies6.48.18.814.218.6
Scholarships4.55.04.84.23.9
Interest 2/12.213.412.223.917.6
Other expenditure16.518.021.445.346.6
Development, PESAP, VDP, and NP 3/87.875.873.1136.3157.2
Development expenditure69.565.567.5128.7152.1
Externally financed64.560.058.5115.0133.5
Equipment and investment5.05.59.013.718.6
PESAP13.26.02.85.12.3
Voluntary departure program (VDP)5.14.31.40.80.3
National Pact (NP)1.41.72.4
Special funds and annexed budgets11.811.010.511.714.5
Extrabudgetary expenditure2.38.95.6
Reconstruction expenditure8.41.7
(Annual percentage change)
Expenditure10.7-4.6-3.358.09.4
Budgetary expenditure24.9-4.7-0.466.58.8
Current expenditure23.34.92.449.92.0
Personnel11.0-2.1-1.48.87.9
Supplies-13.526.68.661.431.0
Scholarships40.611.1-4.0-12.5-7.1
Other expenditure-6.89.118.9111.72.9
Development, PESAP, VDP, and NP 3/26.3-13.7-3.686.515.3
Development expenditure12.3-5.83.190.718.2
Externally financed12.2-7.0-2.596.616.1
Equipment and investment13.610.063.652.235.8
Special funds and annexed budgets-65.3-6.8-4.511.423.9
Extrabudgetary expenditure-37.8287.0-37.1-100.0
(In Percent of total budgetary expenditure)
Current expenditure48.353.254.749.246.1
Personnel25.025.625.416.616.4
Supplies3.85.05.55.36.4
Scholarships2.73.13.01.61.3
Other expenditure9.711.113.316.916.0
Development, PESAP, VDP, and NP 3/51.746.845.350.853.9
Development expenditure40.940.541.948.052.1
Externally financed38.037.136.342.845.7
Equipment and investment2.93.45.65.16.4
PESAP, VDP, and NP10.86.43.52.81.8
(In percent of total expenditure)
Budgetary expenditure88.388.290.995.895.3
Special funds and annexed budgets6.16.05.94.24.7
Extrabudgetary expenditure1.24.93.2
Reconstruction expenditure4.40.9
(In percent of GDP)
Expenditure28.224.323.527.224.9
Budgetary expenditure24.921.521.325.823.7
Current expenditure12.011.411.712.710.9
Personnel6.25.55.44.33.9
Supplies0.91.11.21.41.5
Scholarships0.70.70.60.40.3
Other expenditure2.42.42.84.43.8
Development, PESAP, VDP, and NP 3/12.910.19.713.112.8
Development expenditure10.28.78.912.412.4
Externally financed9.58.07.711.110.8
Equipment and investment0.70.71.21.31.5
PESAP, VDP, and NP2.71.40.70.70.4
Special funds and annexed budgets1.71.51.41.11.2
Extrabudgetary expenditure0.31.20.7
Reconstruction expenditure1.20.2
Source: Data provided by the Malian authorities.

Data may not add up because of rounding.

Scheduled; after debt cancellation obtained through 1993.

PESAP, Public Enterprise Sector Adjustment Program, financed by the World Bank and cofinanciers.

Source: Data provided by the Malian authorities.

Data may not add up because of rounding.

Scheduled; after debt cancellation obtained through 1993.

PESAP, Public Enterprise Sector Adjustment Program, financed by the World Bank and cofinanciers.

Table 19.Mali: Consolidated Operations of the Special Funds and the Annexed Budgets, 1991–95(In billions of CFA francs)
19911992199319941995
Revenue13.311.610.712.916.6
OSRP 1/3.3
Social Security Fund (INPS)8.710.29.711.815.0
Other revenue 2/1.31.41.01.11.6
Expenditure and net lending11.811.010.511.714.5
OSRP 1/3.1
Social Security Fund (INPS)7.29.59.510.612.9
Other expenditure 2/1.51.51.01.11.6
Surplus/Deficit1.50.60.21.22.1
Source: Data provided by the Malian authorities.

OSRP, Office de Stabilisation et de Régulation des Prix.

Includes the National Housing Fund (FNL), the Central Veterinary Laboratory (LCV), the National Lottery (LONAMA), and the National Institute of Research in Public Health (INRSP).

Source: Data provided by the Malian authorities.

OSRP, Office de Stabilisation et de Régulation des Prix.

Includes the National Housing Fund (FNL), the Central Veterinary Laboratory (LCV), the National Lottery (LONAMA), and the National Institute of Research in Public Health (INRSP).

Table 20.Mali: Government Wage Bill and Employees, 1991–95
19911992199319941995
Wage bill (in billions of CFA francs)42.441.540.944.548.0
Annual change in wage bill (in percent)11.0-2.1-1.48.87.9
Wage bill in percent of current budgetary expenditure51.748.346.433.735.6
Wage bill in percent of total budgetary expenditure25.025.625.416.616.4
Wage bill in percent of GDP6.25.55.44.33.9
Total government employees as of end-December45,49838,05236,05532,71932,527
Of which: civil servants(36,212)(33,063)(31,690)(29,141)(29,067)
Annual change in total government employees (in percent)-8.2-16.4-5.2-9.3-0.6
Source: Data provided by the Malian authorities.
Source: Data provided by the Malian authorities.
Table 21.Mali: Deposit Money Banks in December 1995
DepositsNumber
ShareholdersYearCapitalPublicPrivateTotalof
(Percent of total holdings)established(In millions of(In millions of CFA francs)branches
CFA francs)
Banque de Développement du MaliGovernment20.019683,00038,53233,79872,33013
(BDM-SA) 1/BCEAO20.0
BOAD20.0
Private national
shareholders23.3
Moroccan bank16.7
Banque Rationale de DéveloppementGovernment39.519814,1497,73515,55523,29021
Agricole (BNDA)BCEAO16.8
Caisse Francaise
de Développement
(France)19.6
Deutsche Entwicklungs
Gesellschaft (Fed.
Rep. of Germany)18.5
BDM-SA5.6
Banque Internationale pour l’AfriqueMéridien BIAO-S.A.61.519804,25437550,85451,2297
Occidentale au Mali (BIAO-Mali) 2/Private national
shareholders38.5
Banque Malienne de Crédit et deGovernment100.019611,0002,11337,34639,4596
Dépôts (BMCD)
Bank of Africa-Mali (BOA)Private national75.619821,4003,40127,49530,8965
shareholders
Private foreign
shareholders24.4
Banque Commerciale du Sahel (BCS;ex-BALIMA)Government49.519821,1001677,0107,1771
Foreign Arab banks50.0
Private national shareholders0.5
Société des Chèques Postaux et de laGovernment40.019915001,9324,1006,0321
Caisse d’Epargne (SCPCE) 3/Chamber of Commerce
and Industry32.4
BIAO-Mali20.0
SODIBAF and private
national shareholders7.6
Source: Data provided by the BCEAO.

Restructured into a société anonyms on June 30, 1989.

Following the bankruptcy of the Meridien International Bank Limited (MIBL), the name of the BIAO-Mali was changed in June 1995 to Banque Internationale pour le Mali (BIM).

Registered as a bank; deposits included in the monetary survey, but with no right to issue credit.

Source: Data provided by the BCEAO.

Restructured into a société anonyms on June 30, 1989.

Following the bankruptcy of the Meridien International Bank Limited (MIBL), the name of the BIAO-Mali was changed in June 1995 to Banque Internationale pour le Mali (BIM).

Registered as a bank; deposits included in the monetary survey, but with no right to issue credit.

Table 22.Mali: Monetary Survey, 1991–95 1/
19911992199319941995
Dec.Dec.JuneDec.Mar.Junesept.Dec.
adj. 2/
(In billions of CFA france;end of period)
Foreign assets (net) 3/65.467.876.8156.1235.8204.3229.4252.7245.4240.6
BCEAO61.563.575.8154.0200.0146.7169.5176.5159.4175.3
Deposit money banks3.94.41.02.135.757.660.076.286.065.3
Net domestic assets95.095.699.3119.291.6138.8143.3118.6129.2145.3
Of Which: BCEAO 4/69.868.368.187.972.367.358.853.359.250.4
Credit to the government (net)23.420.728.348.121.649.237.236.627.716.6
Central bank 5/54.655.259.379.272.863.154.455.961.853.4
Commercial banks-30.1-33.8-29.5-29.5-46.6-11.8-15.4-17.4-32.6-35.2
Other-1.0-0.7-1.5-1.5-4.6-2.1-1.8-1.9-1.5-1.5
Credit to the economy 7/63.368.771.471.476.983.1101.489.1107.9131.6
Crop credit7.58.25.25.21.30.415.04.60.84.6
Ordinary credit 7/55.860.566.266.275.682.786.484.5107.1127.0
Other items (net) 6/8.36.1-0.4-0.4-6.96.54.8-7.0-6.4-1.3
Central bank15.213.18.78.71.04.24.4-2.6-2.6-2.9
Commercial banks-6.9-7.0-9.1-9.1-7.92.40.4-4.5-3.8-1.6
Medium- and long-term external liabilities-8.4-6.2-5.7-9.8-11.5-11.1-12.2-12.0-9.2-8.9
Revaluation account95.195.195.195.195.195.195.1
BCEAO98.198.198.198.198.198.198.1
Deposit money banks-3.0-3.0-3.0-3.0-3.0-3.0-3.0
Money supply (M2)152.0157.2170.4170.4220.8234.8265.5264.3270.4283.5
Currency in circulation59.260.965.165.189.190.496.395.994.2107.4
Bank deposits92.896.3105.3105.3131.7146.6169.2168.4176.2176.2
Postal deposits
(Annual percentage change in relation to beginning-of-period money stock)
Foreign assets (net) 3/28.51.65.756.246.828.310.620.417.315.3
BCEAO23.61.37.957.727.0-4.39.612.65.312.1
Deposit money banks4.90.3-2.2-1.519.832.61.07.812.03.3
Net domestic assets-15.40.42.415.0-16.211.51.9-8.5-4.12.7
Credit to the Government (net)-4.6-1.84.817.4-15.60.6-5.1-5.3-9.1-13.7
Central bank 5/4.10.52.615.2-3.7-9.4-3.7-3.0-0.5-4.1
Commercial banks-5.0-2.42.72.7-10.010.4-1.5-2.4-8.8-9.9
Other-3.70.2-0.5-0.5-1.8-0.30.10.10.20.2
Credit to the economy 7/4.68.53.93.9-16.016.4121.515.041.758.4
Crop credit0.20.4-1.8-1.8-2.3-2.86.11.80.11.8
Ordinary credit4.78.49.49.430.624.919.14.641.353.4
Other items (net) 6/-12.9-1.4-4.2-4.2-3.84.1-0.7-5.7-5.53.3
Medium- and long-term external liabilities-0.51.40.3-2.3-1.0-0.8-0.5-0.40.80.9
Money supply12.53.48.48.429.539.112.011.514.119.6
Currency in circulation9.11.12.72.714.114.82.52.31.67.2
Bank deposits6.62.35.85.815.424.29.59.212.512.5
Postal deposits-3.2
Memorandum items:
Velocity of M24.54.84.44.44.34.3
Nominal GDP (CFAF billions)682.1753.5755.1755.11,028.71,231.3
Sources: Data provided by the BCEAO.

Data may not add up because of rounding. Including transactions and reclassifications resulting from the restructuring of the Banque de Développement du Mali and reclassification of deposits resulting from other bank audits. Data are not comparable with the previous RED tables for 1990 as these were adjusted to a 1987 accounting base to provide comparability with previous years.

Accounts revalued at the new exchange rate of CFAF 100 per French franc.

Excluding SDR allocations and medium- and long-term liabilities.

Defined as base money minus net foreign assets.

Including SDR/CFA franc exchange rate revaluation on pre-June 1984 Fund purchases. Including the stabilisation for the cotton sector and, before December 1994, the consolidation of debit balances of BDM at the BCEAO. For December 1994, these claims are included in credit to the Government from commercial banks.

Including nonstatutory advance to the Treasury resulting from the consolidation of the former Central Bank’s debt of CFAF 41.8 bil-lion, including interest thereon.

Annual percentage change.

Sources: Data provided by the BCEAO.

Data may not add up because of rounding. Including transactions and reclassifications resulting from the restructuring of the Banque de Développement du Mali and reclassification of deposits resulting from other bank audits. Data are not comparable with the previous RED tables for 1990 as these were adjusted to a 1987 accounting base to provide comparability with previous years.

Accounts revalued at the new exchange rate of CFAF 100 per French franc.

Excluding SDR allocations and medium- and long-term liabilities.

Defined as base money minus net foreign assets.

Including SDR/CFA franc exchange rate revaluation on pre-June 1984 Fund purchases. Including the stabilisation for the cotton sector and, before December 1994, the consolidation of debit balances of BDM at the BCEAO. For December 1994, these claims are included in credit to the Government from commercial banks.

Including nonstatutory advance to the Treasury resulting from the consolidation of the former Central Bank’s debt of CFAF 41.8 bil-lion, including interest thereon.

Annual percentage change.

Table 23.Mali: Summary Accounts of the Central Bank, 1991–95 1/(In billions of CFA francs: end of period)
19911992199319941995
Act.Act.
adj. 2/
Foreign assets (net)61.563.475.8154.0146.7175.3
Assets82.984.897.8195.5212.6252.6
Liabilities 3/21.421.422.041.565.977.4
Net domestic assets69.868.368.187.967.350.4
Claims on the government (net)54.655.259.379.263.153.4
Claims58.461.164.984.775.875.8
Consolidated claims 4/(23.9)(23.9)(23.9)(23.9)(—)(4.7)
Liabilities 5/3.85.95.55.512.827.1
Other items (net)15.213.18.78.74.22.9
Claims on deposit money banks (net)-72.0-70.8-78.7-78.7-25.5-20.2
Claims
Advances to money market(—)(—)(—)(—)(—)(—)
Rediscounts and other advances(—)(—)(—)(—)(—)(—)
Liabilities72.070.878.778.725.520.2
Deposits in money market(68.2)(68.0)(57.1)(57.1)(3.7)(2.4)
Other deposits(0.7)(0.4)(18.4)(18.4)(14.5)(10.9)
Currency held by banks(3.1)(2.4)(3.2)(3.2)(7.3)(6.9)
Revaluation account98.198.198.1
Currency outside banks59.260.965.165.190.4107.4
Source: Data provided by the BCEAO.

Data may not add up because of rounding.

Accounts revalued at the new exchange rate of CFAF 100 per French franc.

Excluding SDR counterpart.

These claims were securitized and sold to Malian commercial banks in 1994.

Including cash held by the Treasury.

Source: Data provided by the BCEAO.

Data may not add up because of rounding.

Accounts revalued at the new exchange rate of CFAF 100 per French franc.

Excluding SDR counterpart.

These claims were securitized and sold to Malian commercial banks in 1994.

Including cash held by the Treasury.

Table 24.Mali: Summary Accounts of the Deposit Money Banks, 1991–95 1/2/(In billions of CFA francs;end of period)
19911992199319941995
Act.Act.
adj. 3/
Foraign assets (net)3.94.41.02.157.665.3
Assets15.811.17.814.265.673.7
Liabilities (short-term)11.96.76.812.18.08.4
Net domestic assets25.527.630.630.671.096.4
Claims on the government (net)-30.1-33.8-29.5-29.5-11.8-35.2
Claims2.63.43.43.428.019.0
Deposits32.737.133.033.039.854.3
Credit to the private sector62.368.069.969.981.0130.1
Crop credit7.58.25.25.20.44.6
Other54.859.864.764.780.6125.5
Other items (net)-6.7-6.6-9.8-9.81.7-1.6
Reserves71.870.679.479.426.120.2
Money market position (net)67.768.057.157.13.72.4
Deposits67.768.057.157.13.72.4
Advances
Other reserves4.12.622.322.322.417.8
Currency holdings3.12.43.23.27.36.9
Deposits at central bank1.00.219.119.115.110.9
Medium- and long-term external
liabilities8.46.35.79.811.18.9
Revaluation account-3.0—3.0-3.0
Deposits92.896.3105.3105.3146.6176.2
Demand47.447.452.752.783.7100.0
Of which: public enterprises(9.8)(7.0)(5.7.)(5.7)(9.0)(7.0)
Time45.448.952.652.662.976.2
Of which: public enterprises(1.7)(2.0)(3.1)(3.1(5.3)(8.3)
Source: Data provided by the BCEAO.

Data may not add up because of rounding.

Including transactions and adjustments resulting from the restructuring of the Banque de Développement du Mali, and reclassifications of deposits resulting from other bank audits.

Accounts revalued at the new exchange rate of CFAF 100 per French franc.

Source: Data provided by the BCEAO.

Data may not add up because of rounding.

Including transactions and adjustments resulting from the restructuring of the Banque de Développement du Mali, and reclassifications of deposits resulting from other bank audits.

Accounts revalued at the new exchange rate of CFAF 100 per French franc.

Table 25.Mali: Claims cm the Government, 1991–95 1/2/(In billions of CFA francs; end of period)
19911992199319941995
Act.Act.
adj. 3/
Central bank, net claims54.655.259.379.263.153.4
Claims58.461.164.984.775.880.5
Treasury overdraft17.818.821.121.118.4
Trust Fund on-lent
IMF credit on-lent16.718.519.839.757.475.8
Consolidated claims 4/23.923.923.923.94.7
Liabilities3.85.95.55.512.827.1
Treasury currency holdings2.01.03.03.03.05.2
Government deposits1.84.92.52.59.821.9
Deposit money banks, net claims-30.1-33.8-29.5-29.5-11.8-35.2
Claims 4/2.63.43.43.428.019.0
Liabilities32.737.133.033.039.854.3
Counterparts-1.0-0.7-1.5-1.5-2.1-1.5
Private deposits with postal
checking system
Customs duty bills held by the
Treasury01.00.71.51.52.11.5
Net claims on the government23.420.728.348.149.216.6
Of which: banking system 5/(23.4)(20.7)(28.3)(48.1)(49.2)(16.6)
Source: Data provided by the BCEAO.

Data may not add up because of rounding.

Including transactions and adjustments resulting from the restructuring of the BDM, and reclassifications of deposits resulting from other bank audits.

Accounts revalued at the new exchange rate of CFAF 100 per French franc.

Up to end-1993, the consolidated debit balances of the BDM at the BCEAO are included in claims of the central bank on the government. These claims were securitized in 1994 and for 1994 are included in claims of the deposit money banks on the government.

Includes the cotton stabilization fund.

Source: Data provided by the BCEAO.

Data may not add up because of rounding.

Including transactions and adjustments resulting from the restructuring of the BDM, and reclassifications of deposits resulting from other bank audits.

Accounts revalued at the new exchange rate of CFAF 100 per French franc.

Up to end-1993, the consolidated debit balances of the BDM at the BCEAO are included in claims of the central bank on the government. These claims were securitized in 1994 and for 1994 are included in claims of the deposit money banks on the government.

Includes the cotton stabilization fund.

Table 26.Mali: Foreign Assets and Liabilities of the Banking System, 1991–95 1/(In billions of CFA francs: end of period)
19911992199319941995
Act.Act. 2/
adj.
Banking system (net) 3/57.061.571.1146.3193.2231.3
Foreign assets98.795.9105.5209.7278.2332.5
Foreign liabilities41.734.434.463.485.0101.2
Central bank (net)61.563.475.8154.0146.7175.3
Foreign assets82.984.897.8195.5212.6252.6
Foreign exchange79.481.594.4188.8205.4245.7
Special drawing rights0.10.10.10.2
Reserve position in the Fund3.43.33.36.67.16.7
Foreign liabilities21.421.422.041.565.977.7
Use of Fund resources16.518.219.539.060.076.6
Trust Fund
Other4.93.22.52.55.91.1
Deposit money banks (net) 3/-4.5-1.9-4.7-7.746.556.4
Foreign assets15.811.17.814.265.679.9
Foreign liabilities 3/20.313.012.421.919.123.5
Short-term11.96.76.812.18.014.6
Medium- and long-term8.46.35.79.811.18.9
Source: Data provided by the BCEAO.

Data may not add up because of rounding.

Accounts revalued at the new exchange rate of CFAF 100 per French franc.

Differs from net foreign assets in Table 22 and 24, which exclude medium- and long-term foreign liabilities.

Source: Data provided by the BCEAO.

Data may not add up because of rounding.

Accounts revalued at the new exchange rate of CFAF 100 per French franc.

Differs from net foreign assets in Table 22 and 24, which exclude medium- and long-term foreign liabilities.

Table 27.Mali: Interest Rates, 1993–96(In percent)
April 26, 1993–Sept. 30. 1993Oct. 1, 1993–Dec. 19, 1993Dec. 20, 1993–Jan. 17, 1994Jan. 18, 1994–June 26, 1994June 27, 1994–July 31, 1994Aug. 1, 1994–Aug. 31, 1994Sept. 1, 1994 Jan. 22. 1995Jan. 23, 1994–June 4, 1995June 5, 1995–Dec. 25, 1995Dec. 26, 1995–Aug. 4, 1996Aug. 5, 1996–Aug. 18, 1996Aug. 19, 1996 to date
Central bank
Discount rate12.512.510.514.512.011.010.09.08.57.57.257.0
Money market
advances 1/11.225–10.22510.225–7.357.25–8.008.00–9.258.00–6.506.25–5.755.75–5.05.55.5–5.756.0–5.05.0–4.754.0
Lending rates
Crop financing and
agricultural export
credit17.5 maxfreefreefreefreefreefreefreefreefreefreefree
Public enterprises17.5 maxfreefreefreefreefreefreefreefreefreefreefree
Private enterprises17.5 maxfreefreefreefreefreefreefreefreefreefreefree
Deposit rates
Sight 2/freefreefreefreefreefreefreefreefreefreefreefree
Savings deposits8.504.504.508.008.00–5.005.005.004.54.54.5–3.53.53.5
Time deposits 3/
Less than six months8.50TMM-2% 4/TMM-2%TMM-2%tmm-2%TMM-2%TMM-2%TMM-2%TMM-2%TMM-2%TMM-2%TMM-2%
Six months-one year9.50TMM-2%TMM-2%TMM-2%TMM-2%TMM-2%TMM-2%TMM-2%TMM-2%TMM-2%TMM-2%TMM-2%
Over one year10.50freefreefreefreefreefreefreefreefreefreefree
Source: Data provided by the BCEAO.

Until October 14, 1993, these rates were for overnight advances; on that date, the money market was transformed into a weekly auction.

Since January 1, 1985, deposit money banks have no longer been required to remunerate sight deposits.

Minimum rates for deposits above CFAF 2 million; from October 2, 1989, minimum rates for deposits above CFAF 500,000. Since October 1, 1993, minimum rates for deposits equal or less than CFAF 5 million; rates on larger deposits are free.

Average monthly money market rate minus 2 percent.

Source: Data provided by the BCEAO.

Until October 14, 1993, these rates were for overnight advances; on that date, the money market was transformed into a weekly auction.

Since January 1, 1985, deposit money banks have no longer been required to remunerate sight deposits.

Minimum rates for deposits above CFAF 2 million; from October 2, 1989, minimum rates for deposits above CFAF 500,000. Since October 1, 1993, minimum rates for deposits equal or less than CFAF 5 million; rates on larger deposits are free.

Average monthly money market rate minus 2 percent.

Table 28.Mali: Rediscount Rates Applied by the Central Bank, 1989–96 1/(In percent per year)
NormalPreferentialDiscount
discountdiscountrate 4/
rate 2/rate 3/
March 30, 198910.09.0
October 2, 1989abolishedabolished10.50
November 27, 198911.00
August 20, 199213.00
November 9, 199212.50
December 20, 199310.50
January 18, 199414.50
June 27, 199412.00
August 1, 199411.00
September 1, 199410.00
January 23, 19959.00
June 5, 19958.50
December 26, 19957.50
August 5, 19967.25
August 19, 19967.00
Source: Information provided by the BCEAO.

Rates applied to short-term credit of 1 year or less and to medium-term credit of up to 10 years, and 15 years since October 1, 1989. The BCEAO will also rediscount long-term credit which, at the time of rediscounting, has no more than 15 years to maturity.

Applied also to advances against government and private paper, to rediscount of customs duty bills, and to repurchase agreements (prise en pension).

Applied to crop credit, credit to the government and local authorities, small national enterprises with total credit outstanding not exceeding CFAF 30 million, and nationals for the construction of the borrower’s first primary residence (maximum CFAF 15 million with maturities shorter than ten years). Also applied to overdrafts by the Treasury.

The central bank’s discount rate will remain above the rates applied in the money market. A special rate, equal to the money market rate minus 1 percentage point, applies to the statutory advances to the government under Article 16 of the Statutes of the BCEAO. The special rate is a quarterly average, calculated by BCEAO headquarters and communicated on a quarterly basis to the national agencies.

Source: Information provided by the BCEAO.

Rates applied to short-term credit of 1 year or less and to medium-term credit of up to 10 years, and 15 years since October 1, 1989. The BCEAO will also rediscount long-term credit which, at the time of rediscounting, has no more than 15 years to maturity.

Applied also to advances against government and private paper, to rediscount of customs duty bills, and to repurchase agreements (prise en pension).

Applied to crop credit, credit to the government and local authorities, small national enterprises with total credit outstanding not exceeding CFAF 30 million, and nationals for the construction of the borrower’s first primary residence (maximum CFAF 15 million with maturities shorter than ten years). Also applied to overdrafts by the Treasury.

The central bank’s discount rate will remain above the rates applied in the money market. A special rate, equal to the money market rate minus 1 percentage point, applies to the statutory advances to the government under Article 16 of the Statutes of the BCEAO. The special rate is a quarterly average, calculated by BCEAO headquarters and communicated on a quarterly basis to the national agencies.

Table 29.Mali: Interest Rates in the Money Market, 1991–96(In percent per year)
OvernightOne-monthThree-month
DepositsAdvancesDepositsAdvancesDepositsAdvances
1991
November 410.6010.72510.72510.85010.85010.975
1992
June 2210.1010.72510.22510.85010.35010.975
August 2011.1012.72511.22512.85011.35012.975
November 910.1011.97510.22512.10010.35012.225
1993
April 269.3511.2259.47511.3509.60011.475
May 108.8510.7258.97510.8509.10010.975
May 248.3510.2258.47510.3508.60010.475
October 14 1/9.5008.47510.3508.60010.475
October 219.3758.47510.3508.60010.475
October 289.0008.47510.3508.60010.475
November 48.7508.47510.3508.60010.475
November 118.5008.47510.3508.60010.475
November 188.0008.47510.3508.60010.475
November 257.7508.47510.3508.60010.475
December 27.6258.600
December 97.5008.600
December 167.3508.600
December 307.2508.600
1994
January 67.500
January 138.000
January 209.000
January 279.250
June 208.250
June 278.000
July 47.500
July 117.000
July 186.750
July 256.500
August 16.250
August 86.000
August 155.850
August 225.750
September 195.600
September 265.500
December 55.000
December 265.500
1995
December 115.750
December 186.000
1996
January 25.500
April 305.250
June 35.000
June 175.500
July 295.250
August 55.000
August 124.750
August 194.000
Source: Information provided by the BCEAO.

On October 14, 1993 the money market was transformed into an auction of weekly advances.

Source: Information provided by the BCEAO.

On October 14, 1993 the money market was transformed into an auction of weekly advances.

Table 30.Mali: Lending Rates Applied by Commercial Banks, 1984–95(In percent per year)
A. Structure
From June 1. 1984 to October 1. 1989
Short- and medium-term credit
Crop financing and export creditPreferential discount rate +1 percent minimum
+ 2 percent maximum
Financing of storage of agricultural productsPreferential discount rate + 1 percent minimum
+ 2 percent maximum
Credit to small and medium-sized national enterprises 1/Preferential discount rate + 1 percent minimum
+ 3 percent maximum
Credit to nationals 2/ for construction of first primary residencePreferential discount rate + 1 percent minimum
+ 3 percent maximum
Other creditsNormal discount rate + 0 percent minimum
+ 5 percent maximum
Long-term credit 3/
Credit to small and medium-sized national enterprises 1/Preferential discount rate + 1 percent minimum
+ 3 percent maximum
Credit to nationals 2/ for construction of first primary residencePreferential discount rate +1 percent minimum
+ 3 percent maximum
Other creditsNormal discount rate + 0 percent minimum
+ 5 percent maximum
From October 2. 1989 to September 30. 1993
All types of creditMaximum: discount rate + 5 percent
From October 1. 1993
All types of creditFree 4/
Source: Information provided by the BCEAO.

Originally not exceeding CFAF 20 million; since May 1, 1979, not exceeding CFAF 30 million.

Of any member state of WAMU.

Originally, with maturity of mora than 2 years and less than 10 years, and less than 15 years since October 2, 1989.

Minimum abolished on October 2, 1989.

Cannot exceed the legal usury rate, set at twice the prevailing discount rate.

From Mar. 24,From Sept. 22,From Dec. 23,From Mar. 30,From Oct. 2,From Nov. 27,From Aug. 20,From Nov. 9,From Oct. 1
19861986198819891989 4/1989199219921993
Min.Max.Min.Max.Min.Max.Min.Max.Max.Max.Max.Max.
B Rates
Short- and medium-term credit
Crop financing and export
credit8.09.07.08.08.59.510.011.015.516.018.017.5free 5/
Financing of storage of
agricultural products8.09.07.08.08.59.510.011.015.516.018.017.5free 5/
Credit to small and medium-
sized national enterprises 1/8.010.07.09.08.510.510.012.015.516.018.017.5free 5/
Credit to nationals 2/ for construction of first primary residence
construction of first
primary residence8.010.07.09.08.510.510.012.015.516.018.017.5free 5/
Other credits9.514.58.513.59.514.510.015.015.516.018.017.5free 5/
Long-term credit 3/
Credit to small and medium-
sized national enterprises 1/8.010.07.09.08.510.510.012.015.516.018.017.5free 5/
Credit to nationals 2/ for
construction of first
primary residence8.010.07.09.08.510.510.012.015.516.018.017.5free 5/
Other credits9.514.58.513.59.514.510.015.015.516.018.017.5free 5/
Source: Information provided by the BCEAO.

Originally not exceeding CFAF 20 million; since May 1, 1979, not exceeding CFAF 30 million.

Of any member state of WAMU.

Originally, with maturity of mora than 2 years and less than 10 years, and less than 15 years since October 2, 1989.

Minimum abolished on October 2, 1989.

Cannot exceed the legal usury rate, set at twice the prevailing discount rate.

Source: Information provided by the BCEAO.

Originally not exceeding CFAF 20 million; since May 1, 1979, not exceeding CFAF 30 million.

Of any member state of WAMU.

Originally, with maturity of mora than 2 years and less than 10 years, and less than 15 years since October 2, 1989.

Minimum abolished on October 2, 1989.

Cannot exceed the legal usury rate, set at twice the prevailing discount rate.

Table 31.Mali: Deposit Rates Applied by Commercial Banks, 1988–96 1/(In percent per year)
December 1988–October 1989November 1989–October 1993January 1994–Present
FromFromFrom
Dec. 23,Mar. 30,Sept. 22,Dec. 23,Mar. 30,Oct. 2,Nov. 27,Aug. 20,Nov. 9,Oct. 1,Jan. 18,July 8,Sept. 26,April 1,
19881989198619881989198919891992199219931994199419941996
(Up to CFAF 200.000)(CFAF 200,001–CFAF 500,000)(Up to CFAF 500,000)(up to CFAF 5 million)
Public deposits 2/Determined by agreementDetermined by agreementDetermined by agreemefree
Other deposits
Demand deposits4/4/4/5/5/5/5/….5/5/5/5/5/
Time deposits
Less than six months5.005.004.755.506.005/5/5/5/TMM-2 6/TMM-2 6/TMM-2 6/TMM-2 6/TMM-2 6/
Six months - less than one year6.006.505.756.507.005/5/5/5/TMM-2 6/TMM-2 6/TMM-2 6/TMM-2 6/TMM-2 6/
One year and more7.25*7.75*7.00*8.00*8.50*5/5/5/5/5/5/5/5/5/
Certificates of deposit
Six months - less than one year6.006.505.756.507.005/5/5/5/TMM-2 6/TMM-2 6/TMM-2 6/TMM-2 6/TMM-2 6/
One year and more7.25*7.75*7.00*8.00*8.50*5/5/5/5/5/5/5/5/5/
Savings deposits 3/7.007.506.507.007.506.507.009.008.504.58.05.04.53.5
(CFAF 500.000–CFAF 2.000.000)(Above CFAF 2,000,000)(Above CFAF 500,000)(Above CFAF 5 million)
Public deposits 2/Determined by agreementDetermined by agreementDetermined by agreementfree
Other deposits
Demand deposits4/4/4/4/4/5/5/5/5/5/5/5/5/5/
Time deposits
Less than six months6.006.505.75*6.50*7.006.50*7.00*9.00*8.50*5/5/5/5/5/
Six months - less than one year7.257.757.00*7.75*8.257.50*8.00*10.00*9.50*5/5/5/5/5/
One year and more8.50*9.00*8.00*9.00*9.50*8.50*9.00*11.00*10.50*5/5/5/5/5/
Certificates of deposit
Six months - less than one year7.257.757.00*7.758.25*7.50*8.00*10.00*9.50*5/5/5/5/5/
One year and more8.50*9.00*8.00*9.00*9.50*8.50*9.00*11.00*10.50*5/5/5/5/5/
Savings deposits 3/7.007.506.507.007.506.507.009.008.504.58.05.04.53.5
Source: Information provided by the BCEAO.

Fixed rates, unless marked with an asterisk (*), in which case it is a minimum rate.

Includes deposits of the Treasury, Post Office Savings Bank, and other government agencies, public and mixed enterprises, and special private sector deposits resulting from legal requirements, such as reserves of insurance companies.

Applicable to savings deposits of less than CFAF 5 million.

The requirement that banks pay interest on demand deposits was suspended beginning January 1, 1985.

Deposit rates no longer fixed by the BCEAO.

Average montly money market rate published by BCEAO minus 2 percent.

Source: Information provided by the BCEAO.

Fixed rates, unless marked with an asterisk (*), in which case it is a minimum rate.

Includes deposits of the Treasury, Post Office Savings Bank, and other government agencies, public and mixed enterprises, and special private sector deposits resulting from legal requirements, such as reserves of insurance companies.

Applicable to savings deposits of less than CFAF 5 million.

The requirement that banks pay interest on demand deposits was suspended beginning January 1, 1985.

Deposit rates no longer fixed by the BCEAO.

Average montly money market rate published by BCEAO minus 2 percent.

Table 32.Mali: Balance of Payments, 1991–95 1/2/(In billions of CFA francs)
19911992199319941995
Prel.
Exports, f.o.b.104.695.898.9185.0234.7
Of which: cotton(48.9)(37.8)(39.4)(79.7)(126.9)
Imports, c.i.f.-192.7-190.4-191.9-349.3-386.4
Of which: cereals(-9.5)(-6.0)(-7.2)(-7.2)(-10.5)
Trade balance-88.1-94.6-93.0-164.3-151.7
Services (net)-32.8-47.8-31.0-65.5-76.4
Of which: interest due 3/(-10.2)(-10.9)(-9.6)(-21.9)(-16.2)
Private transfers (net)19.719.626.547.147.8
Current account balance
(excluding official transfers)-101.2-122.8-97.6-182.6-180.2
Official transfers (net)-89.694.967.3130.9111.4
Of which: in kind(6.8)(5.8)(3.9)(13.1)(5.5)
budgetary(22.9)(22.6)(12.0)(42.8)(29.4)
projects(38.8)(38.0)(30.0)(65.0)(63.0)
Current account balance
(including official transfers)-11.6-27.9-30.3-45.7-68.8
Nonmonetary capital (net)16.21.1-7.051.161.1
Private (net)-2.2-2.3-1.926.315.0
Official (net)18.43.4-5.124.846.1
Disbursements49.338.730.391.7110.1
Of which: budgetary(18.1)(9.7)(1.8)(31.7)(39.6)
Of which: project-related(31.2)(29.0)(28.5)(60.0)(70.5)
Amortisation due 3/-30.9-35.3-35.4-66.9-64.0
Debt relief 4/23.829.430.651.844.8
Of which: Debt moratoria and debt
under negotiation(23.2)(26.4)(24.8)(42.5)(40.5)
Errors and omissions10.6-4.78.210.8-4.2
Overall balance39.0-2.11.568.032.9
Financing-39.02.1-1.5-68.0-32.9
Foreign assets (net)-38.8-2.0-6.8-48.2-36.3
Of which: IMF (net)(-2.7)(2.1)(1.3)(17.7)(18.4)
Revaluation adjustment-1.30.40.33.4
Changes in payments arrears1.13.75.0-19.8
Accumulation1.14.89.0
Reduction-1.1-4.0-19.8
Memorandum items:
External current account balance
as a percent of GDP
Excluding official transfers-14.8-16.3-12.9-17.8-14.6
Including official transfers-1.7-3.7-4.0-4.4-5.6
Debt cancellation3.33.13.32.32.0
Outstanding payments
arrears (end of period) 5/1.14.89.8
Sources: Data provided by the Malian authorities; and staff estimates.

Data may not add up because of rounding.

Including debt service due to the People’s Republic of China and Russia.

After debt cancellation obtained through 1995, including the 1994 cancellation of debt by France, Italy, and Switzerland, equivalent to CFAF 114.7 billion.

Reflects agreements on debt rescheduling and moratoria, as well as debt under negotiation.

The stock at end of period includes the net change in payments arrears, as well as the change in the value of the stock, owing to exchange rate movements.

Sources: Data provided by the Malian authorities; and staff estimates.

Data may not add up because of rounding.

Including debt service due to the People’s Republic of China and Russia.

After debt cancellation obtained through 1995, including the 1994 cancellation of debt by France, Italy, and Switzerland, equivalent to CFAF 114.7 billion.

Reflects agreements on debt rescheduling and moratoria, as well as debt under negotiation.

The stock at end of period includes the net change in payments arrears, as well as the change in the value of the stock, owing to exchange rate movements.

Table 33.Mali: Balance of Payments, 1991–95 1/2/(In millions of SDRs)
19911992199319941995
Pre1.
Exports, f.o.b.271.1257.1250.2232.7310.0
Of Which: cotton(126.8)(101.3)(99.6)(100.3)(167.6)
Imports, c.i.f.-499.3-510.8-485.6-439.4-510.3
Of which: cereals(-24.5)(-16.2)(-18.2)(-9.1)(-13.9)
Trade balance-228.2-253.8-235.4-206.6-200.3
Services (net)-85.0-128.3-78.5-82.3-100.9
Of Which: interest due 3/(-26.4)(-29.2)(-24.2)(-27.5)(-21.5)
Private transfers (net)51.052.566.959.263.1
Current account balance (excluding official transfers)-262.1-329.6-247.0-229.7-238.0
Official transfers (net)232.2254.7170.2172.2147.1
Of which: in kind(17.6)(15.6)(9.9)(16.5)(7.3)
budgetary(59.3)(60.6)(30.4)(53.8)(38.8)
projects(100.5)(102.0)(75.9)(69.2)(83.2)
Current account balance (including official transfers)-30.0-74.8-76.7-57.5-90.9
Nonmonetary capital (net)41.93.0-17.764.380.7
Private (net)-5.7-6.2-4.833.019.8
Official (net)47.79.1-12.931.260.9
Disbursements127.8103.876.7115.3145.4
Of which: budgetary(46.9)(26.0)(4.6)(39.9)(52.3)
project-related(80.8)(77.8)(72.1)(75.5)(93.1)
Amortization due 3/-80.1-94.7-89.6-84.1-84.5
Debt relief 4/61.778.977.565.259.2
Of which: debt moratoria and debt under negotiation(60.1)(70.8)(62.7)(53.4)(53.5)
Errors and omissions27.5-12.620.813.6-5.5
Overall balance101.1-5.63.885.543.5
Financing-101.l5.6-3.8-85.3-43.5
Foreign assets (net)-100.6-5.4-17.2-60.6-48.0
Of which: IMF (net)(-6.9)(5.6)(3.3)(22.2)(25.0)
Revaluation adjustment-3.41.10.84.5
Changes in payments arrears2.99.912.6-24.9
Accumulation2.912.922.8
Reduction-3.0-10.1-24.9
Memorandum items:
Outstanding payments2.912.924.8
arrears (end of period) 5/
Exchange rate: CFAF/SDR (period average)385.9372.7395.3795.0757.1
Sources: Data provided by the Malian authorities; and staff estimates.

Data may not add up because of rounding.

Including debt service due to the People’s Republic of China and Russia.

After debt cancellation obtained through 1995, including the 1994 cancellation of debt by France, Italy, and Switzerland, equivalent to CFAF 114.7 billion.

Reflects agreements on debt rescheduling and moratoria, as well as debt under negotiation.

The stock at end of period includes the net change in payments arrears, as well as the change in the value of the stock, owing to exchange rate movements.

Sources: Data provided by the Malian authorities; and staff estimates.

Data may not add up because of rounding.

Including debt service due to the People’s Republic of China and Russia.

After debt cancellation obtained through 1995, including the 1994 cancellation of debt by France, Italy, and Switzerland, equivalent to CFAF 114.7 billion.

Reflects agreements on debt rescheduling and moratoria, as well as debt under negotiation.

The stock at end of period includes the net change in payments arrears, as well as the change in the value of the stock, owing to exchange rate movements.

Table 34.Mali: Composition of Exports, f.o.b., 1991–95(Value in billions of CFA francs; volume in metric tons; unit value in CFA francs per kilogram)
19911992199319941995
Prel.
Cotton
Value51.340.141.783.2130.3
Cotton fiber
Value48.937.839.479.7126.9
Volume15,469110,844133,279109,273148,123
Unit value423.8341295729.5856.8
Cotton cakes
Value0.40.40.40.50.5
Volume10,00010,00010,50010,50011,025
Unit value4040404843
Cotton threads and materials
Value1.41.41.42.22.2
Volume2,6502,6502,6502,7002,781
Unit value530530540825802
Cottonseed oil
Value0.50.50.50.80.7
Volume3,1003,1003,1003,1003,131
Unit value170170170255229
Livestock
Value27.325.027.051.846.5
Volume29,60031,44629,60043,70043,700
Unit value9237959111,1841,065
Hides and leathers
Value1.91.82.12.92.6
Volume2,4002,5502,6272,7252,725
Unit value8027248101,053957
Fish
Value1.01.11.11.71.8
Volume1,4501,5081,5681,7501,838
Unit value700700700950998
Shelled groundnuts
Value0.10.40.30.40.5
Volume6805,3333,6673,9424,375
Unit value757575113113
Sheanuts
Value2.02.02.03.03.3
Volume20,00020,00020,00021,50023,865
Unit value100100100140140
Gold
Value12.415.815.227.834.6
Volume4,7626,0995,1844,5996,291
Unit value2,6082,5922,9326,0365,493
Other
Value8.69.69.514.315.0
Total104.695.898.9185.0234.7
Sources: Data provided by the BCEAO; and staff estimates.
Sources: Data provided by the BCEAO; and staff estimates.
Table 35.Mali: Composition of Imports, c.i.f., 1991–95(Value in billions of CFA francs: volume in metric tons; unit value in CFA francs par Kilogram)
19911992199319941995
Prel.
Foodstuffs
Value33.025.727.447.851.7
Cereals
Value9.56.07.27.210.5
Volume76,24245,70657,77735,10048,000
Unit value124132125205219
Sugar
Value10.25.24.215.216.0
Volume83,10046,02533,53751,00054,298
Unit value122113126298295
Milk
Value5.36.27.010.19.8
Volume9,144.310,84012,2358,9388,660
Unit value5755755751,1301,130
Tea and coffee
Value1.71.51.93.13.2
Volume1,7001,7512,0141,6111,933.2
Unit value1,0178789501,9301,644.9
Other beverages
Value0.30.40.40.80.7
Volume2,5002,5752,6522,5462,623
Unit value130137143296266
Cola nuts
Value1.21.31.31.61.5
Volume7,5007,7257,9577,9068,222
Unit value160165166205184
Other
Value4.85.05.39.810.0
Volume31,00031,93032,88829,59930,783
Unit value155158161332324
Machines and vehicles
Value53.053.151.7107128
Volume30,30031,20929,64030,30036,360
Unit value1,7501,7021,7433,5313,513
Petroleum products
Value22.422.221.032.032.9
Volume227,086232,817200,096213,347219,747
Unit value9996105150150
Construction materials
Value20.221.018.633.739.6
Volume40,48044,52840,10034,47440,000
Unit value499471465976990
Chemical products
Value21.420.320.033.935.4
Volume85,37585,30285,30074,07777,781
Unit value251237234457455
Textiles and leather
Value12.713.514.322.520.8
Volume25,75026,52327,31821,85522,510
Unit value4955105251,030926
Other
Value30.034.639.072.578.3
Total192.7190.4191.9349.3386.4
Sources: Data provided by the BCEAO; and staff estimates.
Sources: Data provided by the BCEAO; and staff estimates.
Table 36.Mali: Direction of Trade, 1991–95 1/(In millions of U.S. dollars)
19911992199319941995
ValuePercentValuePercentValuePercentValuePercentValuePercent
Exports267.17100.00204.06100.O0224.70