MALI: An attractive investment destination Why is Mali an - - PowerPoint PPT Presentation

MALI: An attractive investment destination

The country has …

The right conditions Preferential access to key markets Business-friendly government Competitive investment and mining codes Trusted by investors Opportunities in key sectors

§ Key competitive advantages § A favorable investment climate § Viable investment

• pportunities

§ Great potential

Why is Mali an attractive investment destination?

Mali advantages

The right conditions

REASON #1

Reasons to invest in Mali

Mali at a glance

• Area: 1 241 238 Km²
• Population: 17,963,216
• Population growth: 3.6%
• GDP growth (2015): 5.4%
• Currency: Franc CFA (XOF)

1 Euro = 656 FCFA (fixed parity)

• Official language: French

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Source: INSTAT, PEA, World Bank 2015

Strong economic growth The growth in middle class incomes and consumption

• Rapid growth of household consumption: +104% between 2005 and 2015

(constant 2005 USD)

• Spectacular increase in mobile phone coverage and penetration: from 20% in

2008 to 85% en 2015, reaching 10 million subscribers Commodities

• Mining: 3rd gold producer in Africa with 50 tons/year, Mali also boasts

significant reserves of iron (2 million tons), bauxite (1.2 million tons), uranium (5 thousand tons), as well as phosphates, copper, lead, zinc, lithium, limestone, etc.

• Oil & gas: Initial surveys reveal 5 high potential basins, laws have recently

been revised to encourage exploration

• Agriculture: 39.5% of GDP, 2nd cotton producer in Africa with over 500,000

tons/year

A competitive investment climate

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Nioro Kita Kayes Segou Bamako Koulikoro Sikasso Mopti Timbuktu Gao Taoudenni Tessalit Niono Koutiala San

Road network of nearly 20,000 km, of which nearly 14,000 are paved: Connects Mali to the capitals of all 7 neighbouring countries and to 7 maritime ports Dense air transport network: 13 airports of which 6 are international (marked) River transportation over 1500 km: Available from Koulikoro to Gao, serving Ségou, Mopti, Diré, Tombouctou and Bourem in between Rail link to Dakar: 642 km railway between Bamako and Dakar currently undergoing rehabilitation by the Chinese Power grid: Considered one of the most reliable in the region (Global Competitiveness Index 2015, electricity supply indicator) Telecommunications network: Extensive national mobile network coverage by ORANGE and MALITEL; fiber optic network in place in much of the South and progressing North

Algeria, Libya Niger Burkina Faso Côte d’Ivoire Ports of Abidjan and San Pedro, Tema (Ghana) , Lomé (Togo) and Cotonou (Benin) Senegal Port of Dakar Guinea Port of Conakry Mauritania

Strategic location at the heart of West Africa and robust infrastructure

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Source: www.wageindicator.org; www.mays-mouissi.com, UPDEA 2009

Labour costs are competitive globally Power prices on par with the region

229 166 155 138 100 79 66 54 53 52 45

Brazil South Africa Maroc China Cote d'Ivoire Senegal Benin Kenya Burkina Faso Mali Ghana

Minimum wage

(USD/month)

0.34 0.27 0.25 0.20 0.19 0.16 0.15 0.15 0.14 0.12 0.08 0.08

Liberia Gambia Burkina Faso Senegal Mali Cote d'Ivoire Benin Togo Ghana Guinea Niger Nigeria

Power tariffs

(medium voltage, USD/kwh)

Competitive costs for investors

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Source: API Mali, media articles

• Comprehensive peace agreement signed in May 2015 with key rebel groups following a multilateral process, a year after the

2012 uprising of rebels from the North

• Large UN peace keeping deployment in support of national defense forces
• Risk level is low in the South, where most investment opportunities are located, and security was further reinforced following

the Bamako attacks. Most current incidents are isolated attacks taking place in the North, over 1200km away from the capital Bamako

• Business has very quickly bounced following initial unrest and the new election, as shown by the new business registration

data “The uprising doesn’t appear to have deterred investors too much.” KPMG Africa, in reference to the 2012-2013 political crisis

20 40 60 80 100 120 140 160 2010 2011 2012 2013 2014 2015

Registration of new value-adding companies

(CFA Millions)

Business quickly picking up, security fundamentals in place The international community says…

Preferential access to key markets

REASON #2

Reasons to invest in Mali

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Source: API Mali

WEST AFRICA

Access to over 300 million consumers within the region Mali is among the 15 member States of the Economic Community of West African States (ECOWAS) It is also one of the 8 member States of the West African Economic and Monetary Union (WAEMU)

USA

Tax-free and quota-free export of over 6,400 products to the USA Through the African Growth and Opportunity Act (AGOA), the USA drops import taxes over products exported by Mali (6,400 products exempted)

EUROPE

Unlimited access to the EU market The EU and West African countries have signed the Accord de Partenariat Economique/Economic Partnership Agreement (APE - EU) in 2014 APE-EU results in tax free exports of Malian products towards the EU and stronger protection for EU investors

Access to key markets

Business- friendly government

REASON #3

Reasons to invest in Mali

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Source: API Mali, www.doingbusiness.org

• Progressive liberalization of the economy since the 1980s and significant privatization of key sectors: telecommunications,

energy, transport, agriculture, etc.

• Sustained reform momentum to improve the investment climate in Mali: Over the last decade, repeatedly named one of the

fastest reforming countries in the region in the World Bank Group’s Doing Business report Mali consistently ahead in regional doing business reform rankings (WAEMU region)

2010 2011 2012 2013 2014 2015 2016 Mali Ivory Coast Burkina Faso Togo Senegal Benin Niger Guinea-Bissau Distance to Frontier: Progress towards global best practice investment climate

Committed to economic growth through private sector development

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Source: API Mali

Dedicated institutions to support the private sector

Investment Promotion Agency (API-Mali) www.apimali.gov.ml Employers’ Organization (CNPM) www.cnpmali.org

• The Investment promotion agency (API-MALI) is in

charge of attracting, informing, and supporting private investors

• Assists investors at each step in the investment process
• Hosts an one-stop-shop for business registration: simple

and transparent process for registering a new business within 72 hours

• Started in 1980, the Employers’ organization of Mali

(CNPM) has grown into a very dynamic and representative private sector organization

• Represents the interests of the private sector in

dialogue with the Government of Mali

• Includes 7 sub-national branches (Koulikoro, Sikasso,

Ségou, Mopti, Gao, Tombouctou and Kayes)

Chamber of Commerce (CCIM) www.cci.ml Commercial Arbitration Court (CECAM) www.cecam-mali.com

• The Chamber of commerce of Mali (CCIM) was first

created in 1906

• CCIM runs as a modern, independent chamber of

commerce with deep roots within the Malian private sector

• CCIM hosts Mali’s commercial arbitration court

(CECAM)

• The Commercial arbitration court of Mali (CECAM) has

been successfully operating since 2004 within the Chamber of Commerce (CCIM)

• The CECAM enriches Mali’s judicial system by providing

all private sector operators in Mali with an alternative dispute resolution mechanism

Competitive investment and mining codes

REASON #4

Reasons to invest in Mali

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Source: API Mali

Protection and guarantees for investors

• Non-Discrimination: Foreign investors have the same rights and privileges as local investors
• Repatriation of Funds: Full repatriation of capital and profits by individuals and corporations
• Foreign Ownership: Company capital may be 100% foreign
• Protection against expropriation: Article 7 of the investment code
• Dispute Resolution: Mali is a member of the International Centre for Dispute Resolution (CIRDI)

and the Communal Court for Justice and Arbitration (CCJA) of the Organization for the Harmonization of the Business Environment in Africa (OHADA)

• Investment Guarantee: Investments are guaranteed under Article 15 of the convention

establishing the Multilateral Investment Guarantee Agency (MIGA)

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Source: API Mali

Summary of tax incentives Regime Investment amount (USD) Customs tax holiday VAT tax holiday Corporate tax holiday (25%) Minimum flat tax holiday Full tax exemption A 25,000 - 500,000 3 years 3 years 7 years N/A N/A B 500,000 - 2,000,000 3 years 3 years 10 years 8 years N/A C > 2,000,000 3 years 3 years 15 years 10 years N/A D > 25,000, 80% export 30 years Additional incentives are available for investors in special economic zones, and for companies adding value to local raw materials or investing in technological innovation

Tax incentives

Trusted by investors

REASON #5

Reasons to invest in Mali

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Source: API Mali

S a m p l e – n

• t

e x h a u s t i v e

A trusted investment destination

Opportunities in key sectors

REASON #6

Reasons to invest in Mali

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Key sector opportunities

Agribusiness

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Source: West African agricultural potential (ECOWAS), February 2008

• Mali is one of the biggest countries in Africa (2.5 times bigger than France)
• With vast arable land and relatively low population density, Mali has one of the largest untapped land assets in the region, ripe

for agricultural expansion

• Less than 10% of the total estimated 40 million hectares of arable land is cultivated

10 20 30 40 50 60 70 80 N i g e r i a M a l i N i g e r C ô t e d ' I v

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r e G u i n é e G h a n a B u r k i n a F a s

• S

é n é g a l T

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• L

i b e r i a S i e r r a L e

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e B é n i n G u i n é e

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i s s a u G a m b i e C a p

• V

e r t Million hectares

ECOWAS arable land resources

Superficies cultivables Superficies cultivées

• Sup. cultivables non cultivées

Mali has one of the largest untapped land assets in the region

Senegal Cape Verde Benin Guinea Bissau Guinea Gambia

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Source: UNDP, Jeune Afrique - Atlas of Mali, ARPAZO Report, DRPIA Mopti report (Cissé etal. 2002)

Senegal river catchment: 90,000 ha irrigable Niger river catchment:

2,1 million ha irrigable, including

• Haute Vallee du Niger (100,000 ha)
• Office du Niger (250,000 ha)
• San (4,500 ha)
• Mopti (300,000 ha)
• With the two largest rivers in West Africa and vast alluvial plains, Mali has the best

irrigation potential in the region

• Two largest river systems in West Africa: Niger and Senegal rivers and numerous

streams

• Groundwater resources, estimated at 2.7 billions m3, make Mali one of the water

towers of Africa

• Estimated 2.2 million hectares total irrigable land - only 300,000 hectares under

irrigation today

• Office du Niger is one of the largest irrigated areas in Africa

Mali has the best irrigation potential in the region

100 200 300 10 20 30 40 50 J F M A M J J A S O N D Rainfall (mm) Temperature (C)

Kayes

Kayes Segou Bamako Sikasso Mopti Timbuktu Gao Taoudenni Tessalit

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Source: National meteorogical institute, 2005-2014 averages for rainfall, min and max temperatures

• With over 300 days of sunshine and over 600 mm of rainfall per year, the southern part of Mali has ideal growing conditions for

a range of oil seeds, cereals, vegetables and fruits (Mali is a significant global player in the mango value chain) With cool nights, Mali’s north has a unique advantage for wheat production along the banks of the Niger River

100 200 300 10 20 30 40 50 J F M A M J J A S O N D Rainfall (mm) Temperature (C)

Bamako

100 200 300 400 10 20 30 40 J F M A M J J A S O N D Rainfall (mm) Temperature (C)

Sikasso

100 200 300 10 20 30 40 50 J F M A M J J A S O N D Rainfall (mm) Temperature (C)

Segou

Mali has ideal growing conditions for oil seeds, cereals, vegetables and fruits

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Key sector opportunities

Livestock

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Livestock

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• Nearly half of the Malian population is engaged in

livestock rearing

• Mali has been at the center of the regional livestock

sector development:

• Improved feed (bourgou) and medicinal plants
• Ancestral know-how in transhumance and traditional

salt cure on mineral rich grasses at the end of the rainy season

• Ancient trading structures including commercial

intermediaries and livestock markets

• Even social structures have evolved over centuries to

strengthen capacity in the livestock sector

• Development of dairy breeds and traditional dairy

products, including

• Sour milk
• Liquid butter (ghee)
• Cream (fene)
• Cheese (takkamart)

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Source: Photo CIRAD (Centre of Agricultural Research for Development)

Dairy sector: Long heritage of herders and strong know-how

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Source: SCATEC, Ministry of Energy of Mali

Key sector opportunities

Power

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• Low capacity of old installations: Only 62% of nominal

capacity on average over the last 5 years

• Fast growing demand on the grid: Annual 10% growth in

demand, currently 248 MW on grid

• Large unmet demand off-grid: Only industrial consumers and

large settlements already represent an unmet demand of over 300 MW, currently filled with diesel-generated self-production

• Demand/supply gap expected to grow: Projected growth in

the mining and other industrial sectors, and continued growth in domestic demand, are expected to maintain a significant power supply gap

50 100 150 200 250 300 350 400 450 500 2009 2010 2011 2012 2013 2014

MW

Low effective capacity of current installed facilities

200 400 600 800 1000 1200 1400 1600 1800 2000 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035

MW

Projected power supply and demand on the grid

Hydroélectricité Thermique Solaire Interconnexion Source: Mali National Renewable Energy Action Plan, DNE/CEREEC-CEDEAO, 2015

Total demand Satisfied demand >300 MW gap

BOOT opportunities growing (on and off grid)

Hydro power Thermal Solar Interconnection

Mali grid supply and demand (in TWh) and cost of production (in euro cents / KWh) outlook Supply/demand forecast in neighboring countries

(Total Côte d’Ivoire, Senegal, Mauritania and Guinea) 29

• Imports are expected to fill the growing domestic supply gap: Mali’s power utility is already importing power from its neighbors

to serve its grid customers

• The supply/demand situation in most of these countries is very tight too: Only a fraction of the planned power deliveries from

Côte d’Ivoire were completed in 2015, and the power-strapped West African region may become a source of export

• pportunities for Mali
• Relatively inefficient technologies and a strong reliance on fuel transported from the coast result in the high production costs
• f current installations: 0.16 EUR/kWh average, projected to remain in the 0.12-0.14 EUR/kWh bracket until 2035

Source: Challenges and issues of the energy sector in Ivory Coast, Department of Energy, 2012; TECHNIPLAN/OMVS, 2014; DNE/CEREEC-CEDEAO, 2015

10 20 30 40 50 60 2014 2018 2022 2026 2030 TWh 2 4 6 8 10 12 14 16 18 1 2 3 4 5 6 7 8 9 10 2015 2018 2021 2024 2027 2030 Euro cents / KWh TWh

Strong opportunities for grid-connected producers

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Source: CNESOLER/AER-MALI

HYDROPOWER

§ Over 615 MW identified hydropower potential

remains to be developed SOLAR

§ Year-round solar radiation, 5-10 hours per day,

yielding a range of 5-6.2 kWh/m2/day

§ Land sites availed by the State for free

BIOMASS

§ The country could produce 300 MW with a better

valorization of the biomass

2,200 – 2,400 kWh/m2/yr 2,000 – 2,200 kWh/m2/yr 800 – 2,000 kWh/m2/yr

EDM grid

KEY Kayes Kita Ségou BAMAKO Mopti Timbuktu Gao N i g e r Sénégal

Planned grid extensions

Office du Niger cereals Maize Cotton

1 GW of additional capacity through the systematic use of local resources

URBAN WASTE

§ 30 MW potential estimated from urban waste in the

main cities WIND

§

3-7 m/s wind band in the North of Mali

Growing potential for diversified production

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Source: SCATEC, Ministry of Energy of Mali

Key sector opportunities

Infrastructure

Infrastructure: List of some PPP projects

• Construction of the 4th bridge of Bamako
• Waste to Energy Thermal Power Plant of

Noumoubougou

• African School of Mining
• Development of Industrial clusters
• Construction of a dry port integrated platform in

Ambidebi, near Kayes and in Sikasso

• Agriculture and irrigation Development Project in

the Zone of Office du Niger and Alatona

• Construction of the Regional Road Kayes-Aourou-

Kiffa-Tidjikja (Mauritania)

• Construction of the highway 2x2 Zegoua-Sikasso

(95km)

• Affordable houses

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• Investment forum, hosted by H.E. the President of Mali
• Interested investors will have the chance to interact directly with relevant public officials and discuss opportunities with

investors already operating in Mali

• Investors are also welcome to contact API-Mali at any time to arrange customized visits

Contact information: Moussa Toure CEO API MALI – Mali Investment Promotion Agency moussa.toure@apimali.gov.ml

INVEST in Mali Investment forum: 07 & 08 december 2017