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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Energy
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Overview

Mali is endowed with plentiful solar and hydro potential, and energy sector development remains a priority for the Malian transition government. In 2023, 66 percent of electricity was generated using diesel generators, while hydroelectric power generation was the second largest source of electricity. Despite its potential, solar energy represents only 2.7 percent of Mali’s total generation capacity, estimated to be 866 MW. Energie du Mali (EDM), the state-owned electric utility, is poorly managed and heavily subsidized by the government and financed by regional multinational banks. Brownouts and load-shedding are increasingly common. Many companies use onsite generators to power their activities. The unreliable electrical grid is a substantial barrier to investments in many sectors.
The transition government is working to expand electricity supply, including off-grid solutions in rural areas, and is encouraging investment in the energy sector to stimulate the economy. EDM, which operates in cities, is authorized to buy electricity produced by private companies. The Malian Agency for Rural Electrification (AMADER) grants concessions to villages allowing the private sector to produce and distribute electricity. The World Bank and the African Development Bank support energy sector development in Mali by financing large regional interconnection projects to improve access to electricity.

Leading Sub-sectors

Opportunities to develop renewable energies, including hydro, solar, and wind, are abundant but underutilized. In addition, evidence suggests Mali has an abundance of white hydrogen, a naturally occurring clean energy source. The Agency for Renewable Energies (AER) was created to promote large-scale use of renewable energies in Mali. Energy sector services and equipment supply may also be options. The government is working to diversify its energy mix by moving away from expensive thermal sources and increasing renewable energy production, particularly solar.
Opportunities

The government is actively looking for partnerships to develop its underutilized renewable resources, including an estimated 800 MW of hydroelectric power, potentially unlimited solar energy, and over 300 MW of biomass. The government also seeks to increase the production capacity of EDM, improve the reach of rural electricity grids, and improve management of the entire chain of production.  In the interim, Mali’s thermal plants require fuel imported from outside of the country. Mali also has significant natural gas and oil reserves, particularly in the northern part of the country, but exploitation of these reserves is inhibited by security challenges. In 2016, Mali passed a law governing PPPs and in early 2017 an office was established to implement the law, expedite PPPs (including energy projects), and ensure PPPs are successfully enacted. While energy represents a particularly attractive sector for foreign investment, project implementation has been slow and U.S. firms have often faced frustrating delays.

Resources

Embassy Bamako’s Commercial Section: BamakoEcon@state.gov

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