Economy—overview: Mali is among the poorest countries in the world, with 65% of its land area desert or semidesert. Economic activity is largely confined to the riverine area irrigated by the Niger. About 10% of the population is nomadic and some 80% of the labor force is engaged in farming and fishing. Industrial activity is concentrated on processing farm commodities. Mali is heavily dependent on foreign aid and vulnerable to fluctuations in world prices for cotton, its main export. In 1997, the government continued its successful implementation of an IMF-recommended structural adjustment program that is helping the economy grow, diversify, and attract foreign investment. Mali's adherence to economic reform, and the 50% devaluation of the African franc in January 1994, has pushed up economic growth. Several multinational corporations increased gold mining operations in 1996 and the government anticipates that Mali will become a major Sub-Saharan gold exporter in the next few years.

GDP: purchasing power parity—$6 billion (1997 est.)

GDP—real growth rate: 6% (1997 est.)

GDP—per capita: purchasing power parity—$600 (1997 est.)

GDP—composition by sector:
agriculture: 49%
industry: 17%
services: 34% (1995)

Inflation rate—consumer price index: 3% (1997 est.)

Labor force:
total: NA
by occupation: agriculture 80%, services 19%, industry and commerce 1% (1981)

Unemployment rate: NA%

Budget:
revenues: $730 million
expenditures: $770 million, including capital expenditures of $320 million (1997 est.)

Industries: minor local consumer goods production and food processing; construction; phosphate and gold mining

Industrial production growth rate: 0.6% (1995 est.)

Electricity—capacity: 87,000 kW (1995)

Electricity—production: 290 million kWh (1995)

Electricity—consumption per capita: 31 kWh (1995)

Agriculture—products: cotton, millet, rice, corn, vegetables, peanuts; cattle, sheep, goats

Exports:
total value: $473 million (f.o.b., 1996 est.)
commodities: cotton, livestock, gold
partners: mostly franc zone and Western Europe

Imports:
total value: $797 million (f.o.b., 1996 est.)
commodities: machinery and equipment, foodstuffs, construction materials, petroleum, textiles
partners: mostly franc zone and Western Europe

Debt—external: $2.8 billion (1995)

Economic aid:
recipient: ODA, $NA

Currency: 1 Communaute Financiere Africaine franc (CFAF) = 100 centimes

Exchange rates: CFA francs (CFAF) per US$1—608.36 (January 1998), 583.67 (1997), 511.55 (1996), 499.15 (1995), 555.20 (1994), 283.16 (1993)
note: beginning 12 January 1994, the CFA franc was devalued to CFAF 100 per French franc from CFAF 50 at which it had been fixed since 1948

Economic Reform
With the encouragement of the major donors and the international financial institutions, the Government of Mali initiated a series of adjustment and stabilization programs in 1982. Measures were introduced to reduce budgetary deficits, public enterprise operating losses, and public sector arrears. Substantial progress was made in the first few years of the adjustment program, but the pace of reform slowed considerably in 1987 and required the intervention of donors to avert a financial crisis. Under the economic reform program signed with the World Bank and the IMF in 1988, the government has taken a number of steps to liberalize the regulatory environment and thereby attract private investment. For example, applications for the establishment of business enterprises now enjoy "one window" (guichet unique) processing through a single ministry, allowing a business to be established in a matter of days. In addition, price controls on consumer goods have been eliminated steadily; the last price control, on petroleum products, was removed on July 1, 1992. Import quotas were eliminated in 1988, and export taxes were dropped in 1991. The Commerce Code was revised in 1991 to remove impediments to commercial activity. Also in 1991, a system of commercial and administrative courts was established to handle private trade complaints and claims against the government.
Another major element of reform is the government's disinvestment from the public enterprises which dominated commerce immediately after independence. Already 20 of the 50 state-supported enterprises identified for disinvestment have been sold or liquidated, thus reducing government expenditure on this element of the public sector.

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