Public Management

Mali: FDI flows more than halved in 2020

Tuesday, 13 July 2021 12:20
Mali: FDI flows more than halved in 2020

(Ecofin Agency) - The flow of Foreign Direct Investments (FDI) in Mali dropped by more than 50% to $308 million (CFA170 billion) in 2020. These figures were unveiled in a recent report by the UN Conference on Trade and Development (UNCTAD).

According to the document, this decline took place in a gloomy global environment, marked by the Covid-19 pandemic which led to a 35% drop in global foreign investment, mainly in Europe (-80%). In Africa overall, FDI flows fell to $39.7 billion in 2020, down 16% YoY.

UNCTAD found that most FDI in Mali is directed towards the mining sector (gold mining) and infrastructure. The country is trying to improve its business climate and established an Investment Promotion Agency (API) which serves as a unique portal for potential investors. This is a complex equation for an economy shaken by political instability and security problems in the north. This background tends to dissuade investors.

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