Agriculture plays a significant role in driving economic growth in Mali. The sector provides direct and indirect employment, economic growth, export earnings, poverty reduction, food security, and nutrition. Agriculture accounts for more than one-quarter of Mali’s gross domestic product, and the sector has been the focus of the country’s development policies since independence in 1964. The potential for agricultural development to increase welfare in low-income countries, like Mali, derives from the fact that large proportions of the population engage in farming for subsistence needs and to generate cash incomes. Therefore, agricultural development policies have dominated the policy arena in Mali, with the government implementing policies to attract foreign investments through bilateral cooperation.
Despite the importance of agriculture as a driver of economic growth in Mali, agricultural sector investments remain volatile, highly reliant on external aid flows, and concentrated in input subsidies for maize cultivation. The Malawi Growth and Development Strategy emphasizes the importance of agriculture, and the level of expenditure on food and agriculture was high from 2005 to 2013, averaging 17 percent of total government expenditure. However, the country faces challenges such as lack of competition in the transport and processing sector, poor enforcement of market and price regulations, and weak contract farming practices, which contribute to high transaction costs encountered by agents of the most relevant constraints. These challenges, if not promptly addressed, could prevent Mali from achieving its National Export Strategy 2013-2018 objectives of diversifying its economy.
There are various investment opportunities in agriculture in Mali, including livestock production (for dairy and beef), aquaculture, horticulture, agro-processing, sugar, soybean, cow peas, pork production, honey production, integrated cotton development, cassava production, and mushroom growing. The government acknowledges that agricultural diversification is needed to grow the economy, and opportunities exist for cost-effective U.S. goods or technical knowledge that can be adapted for local agricultural conditions and boost the quantity or contribute to crop diversification. The leading sub-sectors in the agriculture industry in Mali include crop farming, livestock production, fisheries and aquaculture, irrigation, and agro-processing. The development of Mali offers numerous opportunities for investors, and the government is committed to maintaining an attractive environment for foreign investors.
Agriculture plays a significant role in driving economic growth in Mali, with the sector providing direct and indirect employment, economic growth, export earnings, poverty reduction, food security, and nutrition. The government has implemented policies to attract foreign investments through bilateral cooperation, and there are various investment opportunities in agriculture in Mali. However, the country faces challenges such as lack of competition in the transport and processing sector, poor enforcement of market and price regulations, and weak contract farming practices. The government is committed to maintaining an attractive environment for foreign investors, and the development of Mali offers numerous opportunities for investors.
