Mali Country Commercial Guide
Learn about the market conditions, opportunities, regulations, and business conditions in mali, prepared by at U.S. Embassies worldwide by Commerce Department, State Department and other U.S. agencies’ professionals
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Agricultural Sectors
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Overview

Agricultural activities represent approximately 33 percent of Mali’s GDP and employ nearly 80 percent of Malians.  Mali has important and underexploited agricultural potential, especially in the southern and central regions.  The Niger River Authority (Office du Niger), a state-owned enterprise, manages about 127,000 hectares of organized agricultural land, primarily through governing land transactions and water management.  The state encourages foreign and national private investors to undertake agricultural activities in the Office du Niger’s lands.  The Malian government dedicates around 9 percent of its national budget to the agricultural sector and subsidizes the cotton.  Despite some investment opportunities, Malian agriculture is highly vulnerable to erratic rainfall and fluctuating commodity prices.  Other constraints to crop production in many parts of Mali include labor (not necessarily land), along with low use of agriculture equipment and inputs (traction, plows, donkey-carts, fertilizer, improved seeds, etc.), and the financial means to purchase these technologies.

Commercial banks play an outsize role in private sector financing but could do more for agriculture.  Mali’s 14 licensed commercial banks provide an estimated 80 percent of the financing destined for Mali’s private sector; however, only 10 percent of banks’ portfolios are dedicated to businesses in the agriculture sector.  Additionally, lending to SMEs is particularly low, accounting for only 15 percent of bank credit overall.  Banks reject approximately 60 percent of SME loan applications, perceiving that risks outweigh benefits.  Typical barriers for agro-SMEs include a lack of technical expertise to provide proper financial data and an inability to access required collateral to secure the loan.  Collateral is typically in the form of land, 90 percent of which is owned by men, putting women and youth seeking financing at a disadvantage from the start.  Additionally, banks often lack the sectoral expertise to lend to the agricultural sector. Even when willing to lend to the sector, interest rates, high collateral requirements (as high as 150 percent of loan in some cases), and the short-term nature of lending make it untenable for the average borrower. 

Table: Total Market Size for Agricultural Sectors
 2018201920202021 estimated2022 estimated
Total Cereals Production9,514,298*10,159,539*10,217,286*9,200,000*10,900,000*
Food Imports342.5** ($614.6 million)351.9** ($606.7 million)334** ($580.8 million)395** ($724.5 million)527** ($869.2 million)
Cotton Exports270.8** ($485.9 million)231.4** ($395.0 million)151** ($262.6 million)271** ($497 million)239** ($394.2 million)

*Production in tons
**Figures in billion CFA

Leading Sub-Sectors

Agricultural production in Mali is largely dominated by cotton and grains, including rice, corn, millet, sorghum, and wheat.  Many agricultural sub-sectors, such as shea butter, mangoes, peanuts, cashews, and biofuels, remain largely underexploited and provide a unique opportunity for investors.  Significant opportunities also exist in modernizing Mali’s poultry and livestock production and transformation sectors. 

Opportunities

There are opportunities in agricultural machinery, fertilizers, agribusiness, farming, irrigation tools, livestock, poultry, and animal feed.  The government’s aim to modernize and equip the agricultural sector may also provide business opportunities.  Mali’s food processing sector is small but growing, with the potential for a new market in related equipment and services.

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