Description:
Despite external shocks, Mali's
economy grew by 5.3 percent per year between 2003 and 2006,
driven primarily by the telecommunications sector. But
Mali's landlocked condition, together with the uneven
distribution of population and economic activities between
the arid north and the much richer south, defy the
country's ability to sustain this pace of growth. Mali
depends heavily on regional infrastructure and transport
corridors. A strategic focus on regional integration has
paid off, and critical institutional decisions are bringing
many positive developments. But Mali still faces
infrastructure challenges, the starkest of which lies in the
power sector. The cost of producing power in Mali is among
the highest in the region, with the result that only around
17 percent of the population has access to electricity, much
lower than in other low-income African countries. The water
and sanitation sectors also represent a challenge, as the
nation works to separate the power and water-and-sanitation
functions of EDM, the multisector utility. Mali spent about
$555 million per year on infrastructure during the late
2000s. A total of $200 million is lost annually to
inefficiencies. Assessing spending needs against existing
spending and potential efficiency gains leaves an annual
funding gap of $283 million per year.Mali will likely need
more than a decade to reach the illustrative infrastructure
targets outlined in this report. Under business-as-usual
assumptions for spending and efficiency, it would take over
50 years for Mali to reach these goals. Yet with a
combination of increased finance, improved efficiency, and
cost-reducing innovations, it should be possible to reduce
that time to 15 years.