This is a best prospect industry sector for this country. Includes a market overview and trade data.

Overview

Electricity production in Mali is dominated by hydraulic (55%) and diesel (45%) sources. Although Mali is endowed with plentiful solar and hydro potential, it currently only has about 310 megawatts (MW) of installed capacity to serve a population of around 18 million people. Mali currently imports 50 MW from Cote d’Ivoire and has approximately 90 MW of off-grid production. EDM, Mali’s state-owned electric utility, is poorly managed and heavily subsidized by the government and regional multinational banks. Electricity demand is growing at about 12% per year, exacerbating the shortage of supply and worsening the challenge the government faces in trying to close the gap. Supply, on the other hand, grew on average 8% per year between 2005 and 2015. As a result, the Malian government is working to expand its electricity supply and encourage investment in the energy sector to stimulate the economy. There is an immediate and short-term demand on the EDM residential and commercial network of at least 180 MW, on isolated networks of at least 60 MW, and by large industrial companies of at least 200 MW.

Lack of energy is the main constraint to development of the mining sector. Irregular electricity supply prompts many firms to use generators. From 2008 to 2011, energy consumption by major mining companies increased by 189% or 136 MW. Energy sector development is a foremost government priority. European companies and NGOs have developed relationships with their Malian counterparts in the solar energy sector by undertaking off-grid electrification projects, mainly in rural areas. The Government of Mali authorizes EDM and the Malian Agency for Rural Electrification (AMADER) to buy electricity produced by private companies. U.S. companies and their local representatives can provide solutions to mining companies and EDM allowing them to overcome the hurdles related to limited energy supply.

Leading Sub-Sectors

Major water improvement and access projects funded by Islamic Development Bank and the European Union are ongoing, but there continues to be significant unmet demand for water, both for drinking and for agriculture.

Opportunities

The Government of Mali is actively looking for partnerships to develop an estimated 800 MW of hydroelectric power yet to be exploited, unlimited solar energy, and over 300 MW of biomass. The government also seeks to increase the production capacity of EDM, improve the reach of rural electricity grids, and manage the entire production chain. While energy represents Mali’s most attractive sector for foreign investment, project implementation has been slow and U.S. firms have often faced frustrating delays. In 2016, Mali passed a law governing public-private partnerships (PPP) and in early 2017 an office was established to implement the law, expedite PPPs, and ensure PPPs are successfully enacted. 

Power Africa is a market-driven, U.S. government-led public-private partnership aiming to double access to electricity in sub-Saharan Africa. It offers private sector entities tools and resources to facilitate doing business in Africa’s power sector. In 2016, the Electrify Africa Act institutionalized Power Africa. Learn more about the full Power Africa toolbox or other opportunities offered by Power Africa.

Web Resources

EDM
AMADER
Embassy Bamako’s Commercial Section: BamakoEcon@state.gov

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Mali Energy Trade Development and Promotion