• Mali approves decree creating National Agency for Investment in Local Authorities
• ANICT to manage grants, guarantee loans, support local development financing
• Reform aims to improve oversight amid security crisis and fiscal pressures

The Malian government has approved several decrees establishing a new National Agency for Investment in Local Authorities (ANICT). The decision was adopted at a Cabinet meeting on Wednesday, March 4, as part of a broader effort to reorganize the financing and management of local development.

The new agency will manage investment grants for local governments, guarantee certain loans contracted by these entities, and provide technical support to the department overseeing associations and foundations. According to the official government statement, the reform follows the limited effectiveness of Regional Development Agencies, whose responsibilities will now be transferred to the new ANICT in order to improve the management of public investment at the local level.

“Weak oversight of associations and foundations creates risks such as money laundering and terrorist financing, misalignment with national priorities and regional and local development plans, as well as insufficient transparency and accountability,” the statement said.

The new legal framework also clarifies the administrative oversight procedures applicable to these organizations. It introduces stricter regulatory requirements and requires these entities to contribute financially to development funding.

Reform introduced amid budget and security pressures

The reform comes at a time when Mali faces a security crisis largely driven by jihadist violence, alongside growing fiscal constraints. In its latest assessments, the International Monetary Fund (IMF) has stressed the need for the country to strengthen fiscal discipline and transparency to improve the effectiveness of decentralization and local development policies.

The IMF estimates that Mali’s economic outlook remains favorable, with average growth projected at around 5% between 2025 and 2027. However, the institution notes that sustaining this momentum will depend largely on political stability and improved management of public finances.

The IMF has also emphasized the importance of improving oversight of financial transfers to local authorities, strengthening the capacity of local administrations, and implementing stronger control mechanisms to prevent the misappropriation of public funds.

As part of fiscal decentralization, transfers to local authorities are expected to reach 433.783 billion CFA francs (about $768.7 million) in 2026. These allocations were initially set at 432.554 billion CFA francs for 2025 before being revised down to 412.537 billion CFA francs. The transfers planned for 2026 represent 15.84% of total budget revenue.

Charlène N’dimon