Economy

Mali’s mineral resources are extensive but remain relatively undeveloped. Exploited deposits include salt (at Taoudenni), marble and kaolin (at Bafoulabé), and limestone (at Diamou). The most important exploited mineral is gold, a significant source of foreign exchange. Gold is mined primarily in the southwestern areas of the country, on the Mandingue Plateau. The ancient Malian empire was based on the exploitation of gold, but those deposits were depleted before the advent of colonial rule in the 19th century.

Mali has many mineral deposits that are not commercially exploited, owing to the country’s limited infrastructure. Iron is the most widespread, with deposits found in the west near the Senegal and Guinea borders. Bauxite deposits are located near Kayes and on the Mandingue Plateau. Manganese is also found, and there are phosphate deposits in the area around Ansongo. Lithium has been discovered near Kayes and Bougouni, and there are uranium deposits in the Iforas. There are also small quantities of tungsten, tin, lead, copper, and zinc.

Electricity is largely produced in thermal power stations, but the role of hydroelectric power is growing. Thermal stations are located in Bamako and other large towns. Hydroelectric power is produced at the Sotuba and Markala dams on the Niger River, at the Sélingué dam on the Sankarani River (a tributary of the Niger), and at the Manantali Dam on the Sénégal. Oversight of the Manantali Dam, as well as other dams along the Sénégal, is the responsibility of the Organization for the Development of the Sénégal River, which comprises Mali, Senegal, Mauritania, and Guinea; the group is also tasked with management of the river’s resources. Solar-powered pumps provide electricity to some villages, and the world’s first commercial solar-power station was established at Diré.

Manufacturing

Less than one-fifth of the labor force is employed in industry, and many people are involved in small-scale commerce. Most manufacturing enterprises process food and other agricultural products or make construction materials or consumer goods, the bulk of production being for the domestic market. Products include cotton fiber, printed cloth, and blankets. There are also shops for the construction of motorcycles, the repair of machinery, and the assembly of radios. Handicrafts are important, and the Malians are noted for their clothing, pottery, shoes, baskets, and wood carvings.

Finance and trade

Mali, along with seven other French-speaking countries in western Africa, is a member of the West African Economic and Monetary Union (Union Économique et Monétaire Ouest Africaine). These countries share a common bank, the Central Bank of West African States (Banque Centrale des États de l’Afrique de l’Ouest), which is headquartered in Dakar, Seneg. The bank issues the currency used by the member countries, the CFA (Communauté Financière Africaine) franc, officially pegged to the euro since 2002. Mali has several commercial banks, development banks, and other financial institutions. Several French insurance companies maintain offices in Bamako. A regional stock exchange based in Abidjan, Côte d’Ivoire, and serving Mali has a branch in Bamako.

The most important export items are gold, cotton, and live animals, while imports consist largely of machinery, appliances, and transport equipment and food products. Mali’s major trading partners are China and other Asian countries, neighboring countries, South Africa, and France. Mali is a member of the Economic Community of West African States, a body encompassing most states in western Africa that attempts to integrate and harmonize the economic interests of the region. Despite strict customs controls, smuggling—especially of cattle and fish—is considerable, especially to such neighboring countries as Mauritania and Côte d’Ivoire.

Services, labor, and taxation

Mali contains many historic places of interest, such as Timbuktu and Djenné. Although the transport infrastructure needs further development, hotel expansion and infrastructure improvements did take place before Mali hosted the 2002 African Cup of Nations football (soccer) tournament.

The majority of the workforce in Mali is centered on agriculture, with women performing a significant amount of the work. Workers in Mali are guaranteed the right to form or join trade unions, and there are several in the country, including the National Union of Malian Workers (Union Nationale des Travailleurs du Mali). Government revenue is derived from taxes on net income and profits, payroll, property, goods and services, and international trade.