Since the early 1990s, the Malian business environment has been characterised by increasing market liberalisation, openness to foreign trade and investments, and GDP growth rates superior to the overall Sub-Saharan regional average. The Informal sector remains large and vibrant in Mali, and according to the World Bank & IFC Enterprise Surveys 2010, more than 75% of service companies surveyed report that they must compete against unregistered or informal companies. According to African Economic Outlook 2011, the Malian economy grew by a rate of 4.5% in 2010, and the inflation rate dropped considerably from 9.2% in 2008 to 1.4% in 2010. The Malian government has successfully tackled inflation by granting reductions in valued added tax and customs duties, increasing salaries and subsidies, and by reinforcing price monitoring. According to the US Department of State 2010, the government's desire to boost investments is reflected by the structural adjustment agreements signed between Mali and the World Bank and IMF, as well as its own poverty reduction strategy that followed, all of which emphasise the role of the private sector in developing the economy. This means that domestic and foreign investors are treated equally, and that foreign investors can own 100% of any company they create. However, the state continues to hold control over key economic sectors, most notably the two major exports, cotton and gold. Foreign investment is highest within extractive industries and a significant number of foreign oil exploration companies have committed themselves to investing USD millions searching for oil and gas in Malian desert. The structure in charge of promoting the petroleum sector is the Authority for Petroleum Exploration Promotion in Mali (AUREP) under the Ministry of Mines, Energy and Water.

The level of foreign investment outside extractive industries, such as the mining sector, remains low. One of the main reasons for the lack of significant foreign investment is the high level of corruption. Several sources report on the extent of corruption in Mali and how it influences the business climate. For instance, business executives surveyed in the World Economic Forum Global Competitiveness Report 2010-2011 rank corruption as the second most problematic factor for doing business in Mali, exceeded only by access to financing. Surveyed business leaders give the level of diversion of public funds to companies, individuals or groups due to corruption a score of 2.6 on a 7-point scale (1 being 'common' and 7 'never occurs). Business executives also indicate that the ethical behaviour of companies in Mali constitutes a competitive disadvantage. According to the World Bank & IFC Enterprise Surveys 2010, there are strong indications that petty corruption is very widespread in Mali, given that approximately 19% of companies pay facilitation payments to 'get things done', while 25% identify corruption as a major constraint.

According to the US Department of State 2010, government procurement is rife with corruption. This situation is illustrated in the World Bank & IFC Enterprise Surveys 2010, in which 23% of companies expect to give gifts to secure a government contract. Business leaders surveyed by the World Economic Forum Global Competitiveness Report 2010-2011 indicate that it is quite common for government officials in Mali to favour well-connected companies and individuals when deciding upon policies and contracts. In order to fight this, the government requires all procurement contracts to be inspected by the General Department of Public Markets which determines whether procedures meet the requirements of fairness, price competitiveness, and quality standards. In order to best reduce the risk of extortion and demands for bribes in the procurement process, foreign investors considering bidding on public tenders in Mali are advised to use a specialised public procurement due diligence tool. Based on the above, foreign investors considering establishing themselves in Mali are generally advised to consult with experienced attorneys, to develop, implement and strengthen integrity systems, and to carry out extensive due diligence before committing funds or when already doing business in the country.

Through the Structural Adjustment Programmes (SAPs) introduced in the early 1990s and its subsequent Poverty Reduction Strategy Paper, the Government of Mali has striven to adopt more transparent regulatory policies and effective laws to spur market competitiveness. For instance, the Commerce, Mining and Labour Codes adopted in 1992 were introduced to meet the requirements of fair competition and to ease bureaucratic procedures. The Investment Code 2005 (in French) has reduced the application process to start a business and emphasised investments that promote handicrafts, exports, and labour-intensive companies. The Mining Code (in French) encourages investments in medium and small-sized mining companies, awards two-year exploration permits free of charge and does not require companies to lease areas explored thereafter. Furthermore, Mali's efforts in reducing regulatory barriers is reflected in numbers from the World Bank & IFC Doing Business 2011 that show that operating in Mali requires less procedures and time spent on procedures than the regional averages related to starting a company, dealing with licences and registering property. Similarly, the World Bank & IFC Doing Business 2011 indicates that Mali has facilitated trading across borders by making it possible to submit customs documents electronically.

Nevertheless, business executives surveyed in the World Economic Forum Global Competitiveness Report 2010-2011 perceive government administrative requirements to be quite burdensome. Moreover, business executives also report that government policy-making is sometimes opaque and that government officials may favour well-connected companies and individuals when deciding on policies and contracts. Commercial regulations can be ambiguous and inconsistent, and the lack of transparency increases start-up and overall operational costs. Similarly, the African Economic Outlook 2011 identifies some of the constraints that companies continue to encounter when conducting business in Mali. These include a weak legal and regulatory framework, an inefficient judicial system, a cumbersome tax system, an inadequate financial system, under-developed infrastructure and almost non-existent business support services. Moreover, the Malian regulatory environment holds several areas where investors may encounter corruption. According to the Bertelsmann Foundation 2010, government officials often make demands for illegal ‘fees’ from those transporting goods through any of Mali's several border customs control posts. Fraud through the use of import licences that create preferential rules for individual companies is also widespread. Furthermore, there are regulations prohibiting monopolies and oligopolies, but corruption severely hampers their implementation, which in turn creates wholesale price-fixing oligopolies in many areas of the economy.

Dispute settlement is another area of concern for companies operating in Mali. According to the US Department of State 2010, questionable judgments in commercial cases have occasionally been successfully overturned at the court of appeals, but complaints from the domestic and foreign business community about the judiciary continue to arise. The US Department of State 2010 advises that companies take note that corruption in dispute settlement is particularly pervasive. According to the World Economic Forum Global Competitiveness Report 2010-2011, business executives still have relatively low confidence in the efficiency and resistance against manipulation of the legal framework for private companies to dispute and challenge the legality of government actions and regulations. In order to improve the situation, Mali has established commercial courts with professional magistrates supported by elected representatives of the Chamber of Commerce and Industry of Mali to handle business litigation. In cases where a dispute cannot be settled locally, the Investment Code 2005 provides for reference to international arbitration. Mali is a member of the Organisation for the Harmonisation of Business Law (OHADA) and has developed corresponding legislation (7-9, in French) - also in the Civil Procedure Code (Art. 753, in French) - through which disputes between foreign companies and the government or domestic companies can be tried in an appeals court outside of Mali. Furthermore, Mali is member of the International Centre for the Settlement of Investment Disputes (ICSID), the New York Convention of 1958 and the World Bank Multilateral Investment Guarantee Agency (MIGA). Foreign companies considering investing or doing business in Mali may find relevant information on legislation and business opportunities at the Conseil National du Patronat du Mali, a private investment council based in Bamako, Mali. Access the Lexadin World Law Guide for a collection of legislation in Mali.

Business Corruption

Because of the lack of a formal judicial system in most rural areas, disputes are typically handled by local chiefs, according to Freedom House 2011. Both the domestic and foreign business communities complain about the inefficiency of the judiciary. Companies have relatively low confidence in the enforcement of regulations and in the ability of the judiciary to make fair decisions. Indeed, enforcing commercial contracts is very cumbersome and it is not uncommon that the settlement of commercial disputes involves bribes. According to the World Economic Forum Global Competitiveness Report 2010-2011, companies identify a lack of judicial independence in Mali to constitute a competitive disadvantage.

The US Department of State 2010 reports that the government has created a new agency, the Centre for the Promotion of Industrial Property (CEMAPI), to implement the legal system of property protection. However, despite the establishment of this agency, property rights are not always protected. A recent example concerns a US herbicide manufacturer, which has been involved in a three-year legal battle in Malian courts with a Chinese company allegedly selling the same products under a different brand name. Despite a recent favourable ruling by the Supreme Court, the case was remanded to a lower court, and the outcome of the case remains unclear.

Political Corruption

According to the US Department of State 2010, the judiciary is subject to influence from the executive branch, despite the fact that it should be constitutionally independent. Corruption and limited resources have hampered the fairness of trials and there were reports of widespread of corruption and influence peddling in the courts.

The Heritage Foundation 2010 claims that property rights in Mali are not secured by the judiciary, which is subject to political interference.

Frequency

World Economic Forum: The Global Competitiveness Report 2010-2011:
- Business executives give the independence of the judiciary from influences of members of governments, citizens, or companies a score of 2.8 on a 7-point scale (1 being as 'heavily influenced' and 7 as 'entirely independent').

- Business executives give the efficiency of the legal system for private companies to settle disputes and challenge the legality of government actions and/or regulations a score of 3.4 and 3.6 respectively on a 7-point scale (1 being 'inefficient and subject to manipulation' and 7 'efficient and follows a clear, neutral process').

The World Bank & IFC: Doing Business 2011:
- Enforcing commercial contracts requires a small or medium-sized company to go through 36 procedures, taking an average of 620 days at an average cost of 52% of the claim.

The World Bank & IFC: Enterprise Surveys 2010:
- 48% of small companies, 16% of medium-sized companies and almost 37% of large companies find the court system fair, impartial and uncorrupted.

Afrobarometer: Summary of Results Mali 2008:
- 27%, 26% and 28% of respondents in this household survey considered some, most or all of the judges and magistrates to be corrupt, respectively.

Individual Corruption

According to the US Department of State 2010, corruption is a problem in the police, and some police officers and gendarmes are known for extorting bribes. Another problem is that the police can act with impunity without being held accountable for corruption.

The police are known to serve warrants if bribed to do so. According to the same source, in cases where a monetary debt is owed, an arrested person is known to be able to resolve the case at the police precinct, where the police will receive a portion of the recovered money.

Furthermore, the US Department of State 2010 reports that the traffic police routinely stop and check vehicle registrations. Some police are known to use these occasions to extort bribes.

Business Corruption

According to the World Bank & IFC Enterprise Surveys 2010, just over half of the surveyed companies pay for security in Mali, while a considerably smaller proportion identify crime, theft and disorder as major constraints to doing business in Mali. Furthermore, figures from the World Economic Forum Global Competitiveness Report 2010-2011 indicate that foreign companies mistrust the police in Mali.

Political Corruption

According to Freedom House 2011, the courts have acted on several cases of police brutality, which has led to convictions of several police officers. The Government of Mali permits human rights monitors to visit prisons, but complicated administrative procedures have made investigations difficult.

Frequency

World Economic Forum: The Global Competitiveness Report 2010-2011:
- Business executives give the reliability of the police services to enforce law and order a score of 3.3 on a 7-point scale (1 being 'cannot be relied upon to enforce law and order' and 7 'can be relied upon to enforce law and order').

The World Bank & IFC: Enterprise Surveys 2010:
- 52% of companies surveyed pay for security in Mali, an increase from 40% in 2007.

- Nearly 17% of the companies surveyed identify crime, theft and disorder as major constraints to doing business. A considerable increase when compared to 5% in the previous survey in 2007.

Afrobarometer: Summary of Results Mali 2008:
- 34%, 23% and 23% of the respondents in this household survey considered some, most or all of the police officers to be corrupt, respectively.

- 2% of the respondents in this household survey report to have often paid a bribe to government officials in order to avoid a problem with the police in 2007.

Business Corruption

The figures from the World Bank & IFC Enterprise Surveys 2010 strongly indicate that obtaining public utility services, such as telephone and water connections, frequently involves demands for facilitation payments. Moreover, companies should be aware that obtaining licences and permits may require facilitation payments.

According to the business executives surveyed in the World Economic Forum Global Competitiveness Report 2010-2011, inadequate supply of infrastructure is among the most problematic factors for doing business in Mali.

Political Corruption

In June 2011, Mali's former Health Minister Oumar Toure was charged with 'crime of abuse of public office' or embezzlement, according to a AFP article. USD millions which had been donated by Global Fund in order to combat HIV/AIDS in Mail were allegedly embezzled. In a 2010 news article from Reuters, seven officials from the Health Ministry, including the director of finance, were arrested for embezzlement relating to the same case.

Frequency

World Economic Forum: The Global Competitiveness Report 2010-2011:
- Business executives give government administrative requirements (permits, regulations, reporting) in Mali a score of 3.4 on a 7-point scale (1 being 'burdensome' and 7 'not burdensome').

The World Bank & IFC: Doing Business 2011:
- Dealing with construction permits requires a company to go through 15 administrative procedures, taking as long as 186 days at a cost of 505% of income per capita.

The World Bank & IFC: Enterprise Surveys 2010:
- 42% of companies expect to give gifts to obtain operating licences.

- Senior management spends an average of 2% of its time on dealing with government regulation.

- 40% of companies expect to give gifts in order to obtain a construction permit

- 39%, 25% and 40% of companies expect  give gifts to obtain electrical, phone and water connections respectively.

Afrobarometer: Summary of Results Mali 2008:
- 1% of the respondents in this household survey report to have often paid a bribe for water and sanitation services in 2007.

Business Corruption

According to the World Economic Forum Global Competitiveness Report 2010-2011, property rights are not satisfactorily enforced in Mali. There are problems with the implementation of property rights in the administration of land, which according to the Bertelsmann Foundation 2010, is due to a lack of allotment of land, corrupt practices which raise the transaction costs connected to obtaining a legal title and, finally, diverging concepts of ownership between nomads and the sedentary population which lead to frequent clashes between these two groups.

Frequency

World Economic Forum: The Global Competitiveness Report 2010-2011:
- Business executives give the property rights in Mali a score of 3.5 on a 7-point scale (1 being 'poorly defined and not protected by law' and 7 'clearly defined and well-protected by law').

The World Bank & IFC: Doing Business 2011:
- Registering property requires 5 procedures, can last an average of 29 days and amounts to 12% of the property value.

The World Bank & IFC: Enterprise Surveys 2010:
- 39% of companies expect to give gifts to obtain a construction permit.

Business Corruption

The business executives surveyed in the World Economic Forum Global Competitiveness Report 2010-2011 identify tax regulations among the most problematic factors for doing business in Mali. Companies should note that it is not uncommon to be expected to give bribes when meeting with tax inspectors.

According to the US Department of State 2010, the Malian tax system remains complicated in spite of ongoing efforts to improve it. Moreover, foreign investors have reported that tax collectors sometimes interpret tax laws in a discriminatory manner.

Political Corruption

Tax evasion is widespread and results in tremendous loss of income for the state. In 2011, when the Auditor General conducted a review of its performance since its creation, it discovered that the taxation services, whilst accounting for only a quarter of the audits, were responsible for approximately 75% of the total revenue shortfall.

The discrepancies in the taxation services were initially revealed by the Auditor General's Annual Report 2006 (in French). Many ministries have been implicated in corruption, fraud and mismanagement in relation to public finances. Ironically, l'Energie du Mali (EDM-SA), a company responsible for collecting VAT for the Malian government, did not carry out its tasks properly in 2002, 2003 or 2004, resulting in a loss of more than XOF 1 billion.

Similarly, in 2007 and 2008, the Auditor General conducted investigations in several state departments, including the Department of Taxation, and a number of public servants were accused of embezzlement and economic crimes.

Frequency

The World Bank & IFC: Doing Business 2011:
- During the course of a year, a medium-sized company can expect to pay an average of 59 different taxes at a total tax rate of 52% of profits, and spend 270 hours managing the administrative tasks related to these payments.

The World Bank & IFC: Enterprise Surveys 2010:
- 26% of companies identify tax administration as a major constraint on doing business.

- 20% of companies in Mali state that they are expected to give gifts when meeting with tax inspectors. Both figures are lower than in the previous survey.

Afrobarometer: Summary of Results Mali 2008:
- 26%, 26% and 29% of the respondents in this household survey considered some, most or all of the tax officers to be corrupt.

Business Corruption

According to the World Bank and IFC's Enterprise Surveys 2010, a large percentage of companies expect to pay bribes in order to obtain import licences. Moreover, According to the Bertelsmann Foundation 2010, government officials often demand facilitation payments from companies transporting goods across the border and through several control posts within Mali's borders. Companies should also note that fraud through the use of import licences that create preferential rules for individual companies is not uncommon.

Business executives surveyed in the World Economic Forum Global Enabling Trade Report 2010 state that trade in Mali is impeded by customs procedures, which remain largely inefficient. In addition, exporting and importing require considerable time and paperwork to clear goods at the border, and the process is plagued by corruption and bribery.

Political Corruption

According to the US Department of State 2010, the Auditor General's Annual Report 2009 highlighted instances of fraud and mismanagement that have resulted in the loss of approximately USD 226 million, including lost revenue in the Customs Department. Despite of the OAG has exposed a number of large corruption cases, none of these cases have yet proceeded to trial, as reported in the US Department of State 2010.

The Auditor General continues to face difficulties and obstacles from the customs administration when producing audits, according to a review of its own performance from 2004-2011.

Frequency

World Economic Forum: The Global Competitiveness Report 2010-2011:
- Business executives give the efficiency of customs procedures (formalities regulating the entry and exit of merchandise) in Mali a score of 4.1 on a 7-point scale (1 being 'extremely slow and cumbersome' and 7 'rapid and efficient').

The World Bank & IFC: Doing Business 2011:
- Exporting a standardised shipment of goods requires a company to obtain and fill out 7 documents, taking an average of 26 days at a cost of USD 2,202 per container.

- Importing a standardised shipment of goods requires a company to acquire and fill out 10 documents, taking an average of 31 days at a cost of USD 3,067 per container.

World Economic Forum: Global Enabling Trade Report 2010:
- Business executives give the transparency of border administration (irregular payments in exports and imports) a score of 2.9 on a 7-point scale (1 being 'non-transparent' and 7 'transparent').

- Business executives give the transparency of border administration (corruption perceptions index) a score of 2.8 on a 10-point scale (0 being 'corrupt' and 10 'not corrupt').

The World Bank & IFC: Enterprise Surveys 2010:
- 35% of companies expect to give gifts to obtain import licences.

- 17% of companies identify customs and trade regulations as a major constraint. This is twice the amount compared to the previous survey in 2007.

Business Corruption

The US Department of State 2010 identifies public procurement in Mali as very problematic and prone to corrupt practices. A large number of companies report that they have paid bribes to obtain government contracts, and according to the US Department of State 2009, paying government procurement agents a 5-10% commission is common practice.

According to the US Department of State 2010, the government's privatisation program for state enterprises has created opportunities for both domestic and foreign private firms to acquire public enterprises through open international bidding. Nonetheless, the same source reports that, in some cases, the local media have questioned the transparency of the bidding and contracts award process, but have been unable to provide evidence. Companies are strongly recommended to use a specialised due diligence tool on public procurement in order to mitigate corruption risks associated with public procurement in Mali.

For more information on public procurement, see 'Public Anti-Corruption Initiatives' in the Initiatives section.

Political Corruption

The government is known to award contracts without following the appropriate bidding process. According to the US Commercial Service Doing Business in Mali 2004, the Malian government awarded a contract to private telecommunication operators without launching an open bid. The rival state-owned company, SOTELMA, protested and went on strike and together with the World Bank threatened to freeze assistance to the telecommunications sector. This resulted in a termination of the no-bid award and the initiation of a new competitive bidding process.

For more information on public procurement, see 'Public Anti-Corruption Initiatives' in the Initiatives section.

Frequency

World Economic Forum: The Global Competitiveness Report 2010-2011:
- Business executives give the favouritism of government officials when deciding upon policies and contracts a score of 2.5 on a 7-point scale (1 being 'usually favour well-connected companies and individuals' and 7 'are neutral').

- Business executives give the diversion of public funds to companies, individuals or groups due to corruption a score of 2.6 on a 7-point scale (1 being 'is common' and 7 'never occurs').

The World Bank & IFC: Enterprise Surveys 2010:
- 23% of companies expect to pay bribes in order to obtain a government contract.

- The average value of a gift expected to secure a government contract is 2.5% of the value of the contract.

US Department of State: Investment Climate Statement - Mali 2009:
- It is common practice to pay government procurement agents 5-10% commission.

Political Corruption

The Auditor General’s Annual Report 2009 (in French) reports that the financial audit in 2007 had identified weaknesses and irregularities in the work done by La Direction Nationale de la Géologie et des Mines (DNGM), which operates under the Ministry of Mines. It also revealed that the government did not know the exact quantities of gold produced by the mining companies, thus taxes from them had not been paid.

According to a September 2008 news article from EU Business, Mali's energy minister Ahmed Sow resigned amid an ongoing corruption enquiry linked to his previous position as the head of the Brussels-based Centre for the Development of Enterprise (CDE), an aid agency. Sow is suspected of conflict of interest involving a USD 4.2 million loan given to a Malian textile company. The company went bankrupt shortly after receiving the loan from the European Investment Bank, which gives credit based on recommendations from CDE.

According to several sources including BBC News in 2005, a coalition of farmers, academics and NGOs, the Coalition to Protect Mali's Genetic Heritage, has accused USAID and multinationals like Monsanto and Syngenta of encouraging Malian researchers and Malian government officials to accept controversial biotechnology in return for computers, printers, office equipment, vehicles, and scholarships for study of biotechnology in the US. Minister of Agriculture Seydou Traore has dismissed the accusations.

• Legislation: Corruption has been criminalised in Mali since 1982 by the Anti-Corruption Law (in French) and the Law Against Crimes of Illicit Enrichment (in French), while amendments to the Penal Code in 2001 provided for further criminalisation of corruption. Corruption in the form of attempted corruption, active and passive bribery, abuse of office, extortion, influence-peddling, financial fraud, and money laundering is criminalised. Offenders face penalties of 5-10 years of forced labour, imprisonment, confiscation of assets and a fine of double the illegal assets promised and received, on the condition that a minimum fine of XOF 100,000 is met. The constitution requires the Prime Minister and other cabinet members to annually submit a financial statement and written declaration of their earnings to the Supreme Court. These documents, however, are not made public. Mali's current legislative framework does not address business-to-business corruption. Mali has signed and ratified the African Union Convention on Preventing and Combating Corruption and the United Nation Convention against Corruption (UNCAC). For further information on legislation in Mali, see the Lexadin World Law Guide.

• Government Strategies: Apart from communicating the elimination of corruption as a high priority, the Touré administration has introduced several mechanisms targeting corruption, such as anti-corruption legislation and agencies. With support from the donor community, much work has been done to strengthen macroeconomic and fiscal management and improve the efficiency, accountability and transparency of public finance management systems. For instance, a mid-term expenditure framework has been introduced and extended to several ministries. Budget execution has improved through the decentralisation of finance responsibilities from the Ministry of Finance to other relevant ministries, which has contributed to an increase in their financial management accountability. According to the World Bank's International Development Association (IDA), much progress has been made in strengthening budget formulation and execution in Mali in the last few years, and the World Bank Mali Country Assistance Evaluation 2007 has evaluated Mali's present public expenditure management (PEM) system as impressive by Sub-Saharan standards.

• Anti-Corruption Agency: With assistance from the World Bank, an ad hoc anti-corruption commission was established in 1999 with the responsibility to study reports for the control of the administration. A November 2000 presidential decree saw this commission succeeded by the Support Unit to the Control Structures of the Administration (CASCA - the website is in French). The CASCA oversees a number of smaller anti-corruption units within various government ministries and reports directly to the presidency. It has been designed to assist ministerial and departmental administrative control structures by studying and exploiting their control and inspection reports sent to the President to produce its own, independent analyses. The CASCA is also mandated to follow and evaluate the implementation of presidential recommendations based on these reports. The findings of the CASCA reports are published in Information Bulletins that are made public. The reports have revealed irregularities in legislative and regulative orders as well as in the disposal of public financial resources. Only following a specific presidential directive to forward reports and documentation to competent judicial authorities is the CASCA enabled do so. Apart from the above, there is no available information on its mandate or precise area of work. According to U4 Anti-Corruption Resource Centre 2008, by 2007, 669 control and inspection reports had been analysed by the CASCA and submitted to the President. Of these reports, 123 were transferred to the judiciary.

• Auditor General: The Office of the Auditor General (OAG, in French) was established in 2003 to evaluate the performance and impact of the public financial administration, especially with regards to development programmes and projects. After the appointment, about a hundred support personnel were hired, among them, experienced auditors, some of them international. The agency is independent from the government structures that it monitors and has published revealing reports exposing state financial losses due to widespread customs fraud and tax evasion. The Auditor General's review of its performance since its creation in 2003, has found a total of FCFA 382 billion in revenue shortfalls, including lost revenue in the Customs Office, the Treasury, the Social Security Agency but most notably in the taxation services which accounted for 30% of the audits but 75% of the total missing revenue. The Bertelsmann Foundation 2010 maintains that the Auditor General regularly complains about the lack of prosecution, despite several cases with detailed evidence showing massive financial losses for the government. Reportedly, the Office of the Auditor General is now itself under surveillance from the authorities because it provided evidence of corruption among high-level government officials who had considered themselves as being off-limits to the office's investigations. The latest annual report can be accessed here (in French).

• Extractive Industries Transparency Initiative (EITI): Mali is listed as a candidate country to the EITI, a global initiative aimed at achieving transparency in the payments by companies operating within extractive industries to governments and government agencies. The Malian government has committed itself to join the initiative because of the prospects of massive investment in its oil and gas reserves by foreign oil exploration companies. On 9 September 2010, Mali submitted a final validation report to the EITI Board, a mechanism used by the EITI board to determine a country's candidate or complaint status, as reported by the EITI.

• E-Governance: E-governance is relatively well-developed in Mali. A number of ministries and governmental institutions have their own websites, including the Tax Department and Customs Department under the Ministry of Finance. Moreover, companies wishing to invest in Mali can find useful information on the website of the Ministry for the Promotion of Investments and Small and Medium-Sized Companies (in French) and on E-Regulations Mali (in French). However, while there appears to be an adequate supply of online information related to business regulations and investments, access to documents and services that reduce the number of face-to-face encounters between companies and public officials are lacking.

• Public Procurement: Public procurements valued over XOF 10 million are regulated by Decree No. 95-401/P-RM (in French) of November 1995. To fight corruption in procurement, the government requires all procurement contracts to be inspected by the General Department of Public Markets, which determines whether the procedure meets requirements of fairness, price competitiveness and quality standards. According to law, Malian companies and cooperative societies are awarded advantages in the procurement process over foreign companies under specific conditions. Procurement can take place by open or restricted adjudication, by open or restricted tenders or by limited direct single-source agreements. Companies found guilty of violations of procurement regulations can be barred from participating in future bids. The US Department of State 2010 reports that in some cases the local media have questioned the transparency of the bidding and contracts award process.

• Whistle-Blowing: There are no reports on whistle-blowing in Mali or whether any mechanisms or institutions have been set up to administer complaints of corruption. Likewise, there is no information on whether whistleblowers reporting cases of corruption are protected by law or in practice from threats and acts of retaliation.

• General Comments on the Public Anti-Corruption Initiatives: The institutional setup to combat corruption in Mali, including laws and agencies, is evidence of a firm political commitment. A myriad of administrative control structures have been established to fight corruption. However, the majority of these structures are ineffective and do not cooperate with each other. An exception to this is the country's Auditor General, which has published revealing reports about corruption. An advisory commission has been set up to assist the President in studying and deciding how to follow up on these reports. The work of the commission has enhanced the credibility of the state in the eyes of the public. However, much remains to be done in Mali's fight against widespread corruption and systematic embezzlement.

• Media: The freedoms of speech and of the press are provided for in the Constitution and are largely respected in practice. In fact, Mali is ranked as one of the freest when it comes to media climate in Africa. Despite that libel remains a criminal offence and is severely punished, according to Freedom House 2010, no journalist has been prosecuted under this law since 2007. The Bertelsmann Foundation 2010 also reports that the mass media can operate largely without government interference, and due to a high illiteracy rate in the country, most media are broadcast media. There are more than 200 radio stations in the country, and some of them provide critical views of the government, as reported in Freedom House 2010. However, there are certain restraints in the Press Regulations and Press Offences Act and Penal Code (in French) that complicate writing or broadcasting about corruption. Access to the Internet is not restricted or monitored by the government. However, the Internet is accessible only by around 2% of the whole population, including those who are able to pay the high connection fees. Despite these restraints, the media have helped increase civil society's impact in the fight against corruption. In the Reporters Without Borders Worldwide Press Freedom Index 2010, Mali is ranked 28th out of 178 countries. The Freedom House Freedom of the Press Index 2011 ranks Mali 45th out of 196 countries and describes the country's media environment as 'free'.

• Civil Society: Civil society in Mali is generally viewed as being strong. According to the Bertelsmann Foundation 2008, the former dictator Traoré could not have been overthrown in 1992 without some strong traditions of civil society. Many civil society organisations (CSOs) contribute to raising public awareness of corruption problems, and they are able to convey their messages through the media. According to Bertelsmann Foundation 2010, citizens can enjoy almost unrestricted freedom of association and assembly. In principle, CSOs are able to operate freely without governmental interference. However, the separation between state and civil society is not easily discernible, given that many NGO leaders are also members of the government.

• West Africa Trade Hub: The West Africa Trade Hub is funded and managed by the USAID Regional Mission for West Africa (USAID/WA) with the incentive to promote trade throughout the region. Its Improved Road Transport Governance (IRTG) team has been providing training of local truck drivers and collecting data about bribes, delays and checkpoints in order to optimise cargo transport and make it faster and less expensive. Apparently, this programme has been especially successful in Mali where improvements have been made in reducing the amount of bribes paid as well as the number of checkpoints.

• African Parliamentarians Network Against Corruption (APNAC): APNAC has a chapter in Mali. Their activities include preparation of anti-corruption action plans, capacity-building workshops, funding activities, etc.

The websites listed below provide useful facts on Mali as well as contacts and tools for companies operating in Mali:

• International Finance Corporation: West Africa SME Toolkit (in French)
  Guide to sustainable business management practices for SMEs.
• Business Fighting Corruption
  An online resource centre for business on collective action to avoid corruption which contains a guide and resources for partnerships with companies and other stakeholders to fight against corruption.
• CIA World Factbook: Mali Profile
• World Bank: Mali Data Profile

Sources for further reading:

• US Department of State: Investment Climate Statement - Mali 2010.
• The Bertelsmann Foundation: Transformation Index - Mali 2010.
• Bureau du Vérificateur Général du Mali: Rapport Annuel 2009 (in French).
• US Department of State: Human Rights Report - Mali 2009.
  
  

UNCAC Status: Signed 9 December 2003. Ratified 18 April 2008.

Status on UNCAC Implementation
This field describes the country's status on the United Nations Convention against Corruption. Please note any declarations and reservations made upon ratification. The list of signatories can be found on the UNODC website. Read more about the UNCAC.

Other Relevant Conventions or Treaties:

• AU Convention on Preventing and Combating Corruption: Signed 9 December 2003. Ratified 17 December 2004.
  Read Transparency International's summary and assessment of the convention.
• UN Convention against Transnational Organized Crime: Signed 15 December 2000. Ratified 12 April 2002.
  Read Transparency International's summary and assessment of the convention.

Transparency CPI: 2011: 118/182 (Score: 2.8)

Transparency CPI
This field consists of the score for the country in question on the Corruption Perceptions Index from Transparency International as well as its ranking.

World Bank CORR Index (-2.5 - +2.5): 2010: -0.68

World Bank Corruption Index
This field consists of the score for the country in question on the 'Control of Corruption' indicator in the World Bank Governance Research Indicator Country Snapshot (GRICS): 1996-2010.

OECD Country Risk Classification (0-7): 2011: 6

Country Risk Classification
The classification of countries by risk category has the aim of providing OECD countries with a basis for calculating the premium interest rate to be charged to cover the risk of non-repayment of export credits. Countries are placed in risk categories 0 - 7, with 0 being the lowest risk category and thus the least expensive. Conversely, premium group 7 is the highest risk category. Each classification is comprised of 2 components: 1) an assessment of the country's economic/financial situation, and 2) its overall political stability. Access the complete list of OECD Country Risk Classification figures.

Data Verification:

Publication date: October 2011

Data verified by: Global Advice Network

General Information Sources

• The World Bank & IFC: Doing Business 2011.
• World Economic Forum: The Global Competitiveness Report 2010-2011.
• US Department of State: Investment Climate Statement - Mali 2010.
• The Heritage Foundation: Index of Economic Freedom - Mali 2010.
• African Economic Outlook: Mali Country Profile 2010.
• The Bertelsmann Foundation: Transformation Index - Mali 2010.
• US Department of State: Human Rights Report - Mali 2009.
• Afrobarometer: Summary of Results - Mali 2008.
• Freedom House: Freedom in the World - Mali 2008.
• Lexadin: The World Law Guide - Legislation Mali 2008.
• EU Business: 'Mali's energy minister resigns amid corruption probe', 30 September 2008.
• The World Bank & IFC: Enterprise Surveys 2007.
• Sociolingo's Mali: 'Mali - Serious oil explorations', 15 February 2007.
• Mali Auditor General: Annual Report 2006 (in French).
• US Department of State: Investment Climate Statement - Mali 2006.
• Transparency International: Global Corruption Report 2004.
• U4 Anti-Corruption Resource Centre: Summary Report on West Africa 2003.
• The World Bank & IFC: Investment Climate Survey - Mali 2003.
• The World Bank: Recommendations Concerning Reinforcement of the Anti-Corruption Programme - Mali 2002 (in French).

Corruption Levels Sources

Judicial System

• The World Bank & IFC: Doing Business 2011.
• World Economic Forum: The Global Competitiveness Report 2010-2011.
• Freedom House: Freedom in the World - Mali 2010.
• The Bertelsmann Foundation: Transformation Index - Mali 2010.
• US Department of State: Investment Climate Statement - Mali 2010.
• The Heritage Foundation: Index of Economic Freedom - Mali 2010.
• US Department of State: Human Rights Report - Mali 2009.
• US Department of State: Investment Climate State - Mali 2009.
• Afrobarometer: Summary of Results - Mali 2008.
• The World Bank & IFC: Enterprise Surveys 2007.
• The World Bank: Investment Climate Assessment - Mali 2004.
• Afrobarometer: Democratie et legimitation du marche: Rapport d'enquete Afrobarometre au Mali, December 2002 - April 2004 (in French).

Police

• World Economic Forum: The Global Competitiveness Report 2010-2011.
• Freedom House: Freedom in the World - Mali 2010.
• US Department of State: Investment Climate Statement - Mali 2010.
• US Department of State: Human Rights Report - Mali 2009.
• Afrobarometer: Summary of Results - Mali 2008.
• The World Bank & IFC: Enterprise Surveys 2007.

Licences, Infrastructure and Public Utilities

• The World Bank & IFC: Doing Business 2011.
• World Economic Forum: The Global Competitiveness Report 2010-2011.
• AFP: 'Mali's former health minister charged with corruption' 3 June 2011
• Reuters: 'Mali arrests 7 in aid embezzlement case', 8 September 2010.
• West African Trade Hub: Improved Road Transport Governance on Primary Corridors - Survey Results 1 January - 31 March 2009.
• Afrobarometer: Summary of Results - Mali 2008.
• West African Trade Hub: 'Mali reduces road corruption; Burkina Faso, Ghana, Togo also make strides', 14 August 2008.
• The World Bank & IFC: Enterprise Surveys 2007.

Land Administration

• The World Bank & IFC: Doing Business 2011.
• World Economic Forum: The Global Competitiveness Report 2010-2011.
• US Department of State: Investment Climate Statement - Mali 2009.
• The Bertelsmann Foundation: Transformation Index - Mali 2008.

Tax Administration

• The World Bank & IFC: Doing Business 2011.
• World Economic Forum: The Global Competitiveness Report 2010-2011
• US Department of State: Investment Climate Statement - Mali 2010.
• Afrobarometer: Summary of Results - Mali 2008.
• The World Bank & IFC: Enterprise Surveys 2007.
• Maliweb: 'Révélations du Vérificateur général: L'EDM-SA engloutit plus d'un milliard de TVA du peuple', 10 July 2007.
• Mali Auditor General: Annual Report 2006 (in French).
• US Department of State: Investment Climate Statement - Mali 2006.

Customs Administration

• The World Bank & IFC: Doing Business 2011.
• World Economic Forum: The Global Competitiveness Report 2010-2011.
• World Economic Forum: The Global Enabling Trade Report 2010.
• The Bertelsmann Foundation: Transformation Index - Mali 2010.
• US Department of State: Investment Climate Statement - Mali 2010.
• US Department of State: Human Rights Report - Mali 2009.
• Mali Auditor General: Annual Report 2008 (in French).
• The World Bank & IFC: Enterprise Surveys 2007.

Public Procurement and Contracting

• World Economic Forum: The Global Competitiveness Report 2010-2011.
• US Department of State: Investment Climate Statement - Mali 2010.
• US Department of State: Investment Climate State - Mali 2009.
• The World Bank & IFC: Enterprise Surveys 2007.
• US Department of State: Investment Climate Statement - Mali 2006.
• The World Bank: Investment Climate Assessment - Mali 2004.
• US Commercial Service: Doing Business in Mali - A Country Commercial Guide 2004.

Environment, Natural Resources and Extractive Industry

• Mali Auditor Genera: Annual Report 2009 (in French).
• Transparency International: Global Corruption Report 2008.
• EU Business: 'Mali's energy minister resigns amid corruption probe', 30 September 2008.
• Maliweb: 'Rapport du Vérificateur général: Deux mois après, qui a été inquiété?', 9 August 2007.
• Mali Auditor General: Annual Report 2006 (in French).
• BBC News: 'Mali's David v Goliath GM struggle', 7 December 2005.

Public Anti-Corruption Initiatives Sources

• US Department of State: Investment Climate Statement - Mali 2010.
• The Bertelsmann Foundation: Transformation Index - Mali 2010.
• Mali Auditor Genera: Annual Report 2009 (in French).
• U4 Anti-Corruption Resource Centre: Overview of Corruption and Government Efforts Against Corruption in Mali 2008.
• Lexadin: The World Law Guide - Legislation Mali 2008.
• Mali Auditor General: Annual Report 2007 (in French).
• Classe politique et corruption au Mali: 'La lutte contre la corruption, un trompe-l'oeil?', 22 September 2007.
• Maliweb: 'Rapport du Verificateur général: Deux mois après, qui a été inquiété?', 9 August 2007.
• Maliweb: 'Rapport annuel du VEGAL: la balle est dans le camp de la justice', 2 July 2007.
• Sociolingo's Mali: 'Mali - Serious oil explorations', 15 February 2007.
• Mali Auditor General: Annual Report 2006 (in French).
• US Department of State: Investment Climate Statement - Mali 2006.
• Transparency International: Global Corruption Report 2004.

Private Anti-Corruption Initiatives Sources

• Reporters Without Borders: Mali Country Report 2010.
• Reporters Without Borders: Worldwide Press Freedom Index 2010.
• Freedom House: Freedom of the Press Index 2010.
• Freedom House: Freedom of the Press - Mali 2010.
• Freedom House: Freedom in the World - Mali 2010.
• The Bertelsmann Foundation: Transformation Index - Mali 2010.
• West African Trade Hub: Improved Road Transport Governance on Primary Corridors - Survey Results 1 January - 31 March 2009.
• US Department of State: Human Rights Report - Mali 2008.
• West African Trade Hub: 'Mali reduces road corruption; Burkina Faso, Ghana, Togo also make strides', 14 August 2008.
• US Department of State: Human Rights Report - Mali 2007.