Mali - The economy

R iE ST R I C T E D ,2II? ~ Report No. AF- 50 is rort was prepare' 'or use within rhe Bonk and its omlioted organizations | Theydo not accept responsibility for its accuracy or completeness. The report may not be published nor may it be quoted as representing tneir views. _ _ .~~~~~~~~~~~~~~~~~~~~~~~~~~~. INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT INTERNATIONAL DEVELOPMENT ASSOCIATION THE ECONOMY OF MALI September 13, 1966  CURRENCY EQUIVALENTS 1 Mali franc (M.F.) - 1 CFAF-' 04 0 fTiU.S. 247 Mali francs = 1 $ U.S. 1 million Mali francs= 4L,051 $U.S. 5Q Mali francs = 1.French franc 1/ Franc of the African Financial Community which circulated in Mali until 1962 and is still the legal tender in most neighbouring couRtries.  Table of Contents Page No. BASIC DATA IAPS SUMAIARY AND CONCLUSIONS I. INTRODUCTION 1 The Physical Setting 2 Political Developments 2 The Economic Setting 3 II. THE BCONOI 5 Main Features 5 Plain Sectors 5 Investment and Savings 9 III. FINANCIAL AND MONETARY SITUATIOil 12 Current Budget 12 Budgetary Pleasures taken or to be taken under the Stabilization Plans 13 State Enterprises 15 Mcrnntarv Svstem and nevelonments 16 IVT nAT.A1\JGE nR PAYM1TS 1TTRM1RNAT. DEDBT AN)D PRnSPET.GT 20 Past and Present Situation 20 The i4ediuxn Term Outlook 23 Long Range Prospects 2 AITNZY. - Production, P-pr orts anrd Trlonen+ in the Principal Sectors of the Economy STATISTICAIL APPEIDIX This report is based on the findings of Mr. Billington's missions to Iali in October! 1963 and October 1964 and 7'f. f"e in Jte4 L965.  DBQTr' TArPA Area: 463,ooo sq. miles; 1,200,000 square kms Population: 4,5 million (mid 1964) Rate of growth: 2,4% Population density (per sq. mile) : i1 Population density, per sq. mile of cultivable 'Land: 23 Political status: Independent as part of Federation with Senegal - April 1960 Independent as Mali - September 19b0 Gross domestic product: 75.3 billion Mali Francs (1964) Rate of growth: 2.5% p.a. (1959-64) 1.5% p.a. (1962-64) Per capita: US$66 (1964) Percent of GDP represented by: Agriculture, Forestry & Fishing: 57% Mining: _ MYanufacturing: 7% Government: 11% Percent of GDP at market prices: 1964 1959-63 Gross investment 12% 16%, Gross savings 2% 8% BRalance of nqvTnnnts current aCCount deficit 1IC 8% Goverrment taxation revenue 16% 10% Resource gap as % of investment 84% 50% Money and credit: Conversion: 1 I' _ $0.004 I $ - 247 WM' R e la t i on. b s" to'J lr g emor.etary or custom. -area:. AsoitIe.e f' T.r. Feb.1966 Dec.1962/65(p.a.) Total money supply iP 19.97 12% Time and savings deposits MF 0.70 22% Lending to private sector 1/ i'S- 19.39 32% Cost of living for urban population 1956 = 100 1965 = 152 1/ Mainly State enterprises  Public sector operations 1964/65 1959-1964/65 Government current receipts 17 33.1 billion 17% Government current expenditures MF 13.5 " 20% Deficit IF 0.4 " 1961-1963/64 Public investment expenditures IT 10.2 " 12% Total external assistance to public sector IF 7.1 " 32% External public debt (in million US$) Past average 1964 Total debt 10', 126 Total annual debt service 5.8 7.2 Debt service ratio (over exports) 16% 20% Balance of payments (in US$) 1964 1959-64 Total exports 3 million 1-1/2% Total imports -63.2 n 5-1/4% Net invisibles - 4.4 it -22% Net current account balance -30.8 " 7-1/2% Past average 1964 Groundnuts and livestock as rDroDortion of total exports 63% 63% GOross foreign exchange reserves I.5 2.0 (or 1 month's imports) (or 10 dayst imnorts) IMF Position (in US$ million) Past average 1966 Drawings 9.9 10.9 External financial assistance (in US$ million) 1960-1964 Grants 2// (1961/, 6 -AO 196/I 33.2 Loans 3/ 110.9 France 33.2 TICC'n I) p UAR 16.6 C-lana 13. People's Republic of China 7.3 Fed. Republic of Germany 4. 2/ For Development Plan only 3/ Largely on soft terms  .~ )'jA L G E R I A ClE1E; UD1>Ea \- i , (F - ' A L I Al T .... III I E N N )~~~~~~ V - I N 00 Al LUACOUL'- E t 5 - ) C,. VOLTA Ax~~~~~~~~~~~~~~~~~~~~~~~~~CIBLCTI. INO.N~~~~~<> IA' CUUST( ' ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~~NGFO LIBE ( Aoloacni B Mor''l U ;)) l\-v.vi \ C h AN1A o tJwrourenR~A g Gto '