Agricultural activities represent approximately 33 percent of Mali’s GDP and employ nearly 80 percent of Malians. Mali has large 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 8.5 percent of its national budget to the agricultural sector and heavily subsidizes the cotton industry[C(1] [RS2] [C(3] . Despite some investment opportunities, Malian agriculture is highly vulnerable to erratic rainfall, floods, and fluctuating commodity prices. Other constraints to crop production in many parts of Mali include insecurity, labor (not necessarily land), along with low use of agriculture equipment and inputs (tractors, plows, donkey-carts, fertilizer, improved seeds, etc.), and the financial means to purchase these technologies.
Commercial banks play an outsized role in private sector financing, but only a small proportion goes to the agricultural sector. 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 the required collateral to secure a 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. Furthermore, banks often lack the sectoral expertise to lend to the agricultural sector; even when willing to lend, interest rates, high collateral requirements (as high as 150 percent of loan in some cases), and the short-term nature of lending make it impractical for the average agricultural borrower.
Leading Sub-sectors
Agricultural production in Mali is largely dominated by cotton and grains, including rice, corn, millet, sorghum, and wheat. Total cereals production is expected to reach 11,696,000 tons in 2025. Many agricultural sub-sectors, such as shea butter, mangoes, peanuts, cashews, and biofuels, remain largely underexploited and provide a unique opportunity for investors.
Although nearly 70 percent of Mali’s households raise livestock or poultry for income, production is not commercialized effectively. Significant opportunities also exist in modernizing Mali’s poultry and livestock production and transformation sectors.
Table: Total Market Size for Agricultural Sectors
| 2022 | 2023 | 2024 | 2025 |
Food Imports | 441** ($735 million) | 514** ($856.7 million) | 530** ($883.3 million) | 564** ($940 million) |
Cotton Exports | 295** ($394.2 million) | 197** ($328.3 million) | 224** ($373.3 million) | 222** ($370 million) |
**Units: FCFA billions
Source: International Monetary Fund
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.
Resources
Embassy Bamako’s Commercial Section: BamakoEcon@state.gov