Mali: World Bank Supports Economic Growth in Mali

Mali: World Bank Supports Economic Growth in Mali

The World Bank Board of Executive Directors today approved an International Development Association (IDA) grant of US$35.5 million and credit* of US$19.5 million to enhance productivity and spur economic growth in Mali.

The Growth Support project aims to improve the investment climate and foster growth, with a particular focus on small and medium enterprises and on key sectors. It will help expand the availability of the infrastructure base and promote business innovation through financial and non financial services.

“The proposed project is in line with both the Poverty Reduction Strategy of Mali and the 2003 Country Assistance Strategy which focus on promoting shared growth. It will help increase private investment levels and productivity, job creation and market linkages. It will also complement the ongoing Bank-financed projects in infrastructure, rural sector, as well as financial sector that focus on supply chains and diversification”, said François Nankobogo, the World Bank Task Team Leader for the project.

“The project also supports the achievement of the eighth Millennium Development Goal calling for private sector development as a key element of the need for global partnership for development”, Nankobogo added.

The first component of the project – Investment Climate and Institutional Strengthening —will help reduce the cost of doing business through the implementation of the key recommendations that emerge from the recent investment climate assessment and improve the country’s legal and regulatory framework in key areas for private sector development. It will strengthen both policymaking and operational capabilities in key sectors with a high growth contribution potential.

The second component – Infrastructure Support for Growth —seeks to improve economy-wide and sectoral total factor productivity by enhancing available infrastructure. This will include the development of an industrial zone, the improvement of the Bamako airport, support to the expansion of the telecommunication network, and support to infrastructure improvement for tourism and mining.

The third component – Financial and Non-Financial Services for Innovation and Development —will increase term financing for micro, small and medium enterprises and provide them with quality business development services so as to improve their competitiveness and performance.

Mali has made significant economic and political progress over the past decade despite considerable obstacles and adverse shocks. Real gross domestic product (GDP) growth averaged at about 5.6 percent per year from 1994 to 2003, higher than the average GDP growth rate of 3.2 percent for Sub-Saharan African countries over the same period. This growth enabled real per capita GDP in Mali to rise by 3.1 percent per year.

* The credit is on standard International Development Association (IDA) terms, with a commitment fee of 0.35 percent and a service charge of 0.75 percent. The credit’s period of maturity is 40 years, including a 10-year period of grace.

For more information on the World Bank’s work in sub-Saharan Africa visit: http://www.worldbank.org/afr

For more information on the World Bank’s work in Mali visit:
http://www.worldbank.org/afr/ml

For more information about this project visit:

http://www-wds.worldbank.org/servlet/WDS_IBank_Servlet?pcont=details&eid=000104615_20050103113520

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