World Bank to Support Mali Quest for Energy

By Henry Neondo

 BAMAKO-- During meetings with the president of Mali, cabinet members and representatives of civil society, World Bank President, Robert Zoellick praised Mali’s drive to transform the economy from a reliance on subsistence farming and mining to a future based more on increased agricultural production, manufacturing, and services.

 “Increasing agricultural productivity, lowering energy and transportation costs, and diversifying beyond gold mining will lay a stronger foundation for job creation and shared growth”, Zoellick said at the end of his two-day visit to Mali.

 Zoellick noted Mali’s vulnerability to poor weather conditions and other natural disasters, including the fact that the country is also expected to produce less gold in the years ahead.

 He encouraged Mali to maintain prudent economic policies, improve public financial management, and strengthen fiduciary oversight and debt management.

 Zoellick encouraged transparency in revenue management for Mali’s gold resources, at a time when gold prices have reached high levels.

 Revenue from gold represents over 95 percent of total mine output. Cotton accounted for eight percent of Mali’s GDP between 1980 and 2005, 30 percent of exports, and benefited a third of Malians. Mali’s most traded goods include mangoes and live animals.

 During discussions with civil society, Zoellick supported citizens’ groups in their efforts to achieve more accountability, good governance and anti-corruption efforts.

 “We have just concluded a successful replenishment of IDA 16, the World Bank’s main funding to low-income countries”, said the World Bank president, who was accompanied by the Vice President for the Africa Region, Obiageli Ezekwesili.

 This past year, IDA committed US$140 million to Mali to support various programmes in the areas of expanding access to electricity, fostering agriculture productivity while promoting the value chain approaches, and providing budget support to help the country cope with the effects of the global economic crisis. 

 Inasmuch as IDA 16 represents a 20 percent increase over IDA 15, Mali's allocation is expected to increase roughly to about US$160 million annually.