Mali: The Success Mali Must Move Beyond

Mali has established a thriving cotton industry, supporting millions of people and ranking among Africa's top producers. However, a significant portion of the fibre produced remains unutilised as it is exported without undergoing further processing. This presents an opportunity for Mali to transition from a cotton exporter to an industrial textile country, according to Mossadeck Bally, an entrepreneur with decades of experience investing in West Africa.

Bally argues that the current approach is insufficient, as it fails to consider the infrastructure, financing, and market requirements needed for the next stage of textile production. He proposes a strategic approach that focuses on spinning, converting cotton fibre into yarn, which is easier to transport and can attract textile manufacturers in a later phase.

The main challenge lies in the financing structure. Traditional commercial banks often require short loan maturities and collateral based on existing property, which can be difficult for textile projects that need long-term financing. Additionally, the cost of credit is often incompatible with manufacturing margins, creating further barriers to investment. Bally suggests that financial engineering tools, such as first-loss guarantees, political-risk cover, and equity investment, can alleviate some of these issues.

To facilitate industrial development, Bally advocates for a more strategic role for the government. This includes defining a clear trajectory, securing land, organising infrastructure, simplifying tax and customs administration, and creating a conducive environment for private capital and expertise to flow through public-private partnerships. The Glo-Djigbé Industrial Zone in Benin serves as a reference point, but Mali must adapt the model to its unique circumstances, considering its landlocked status.