The Executive Board of the International Monetary Fund (IMF) has completed its Article IV consultation with Mali, according to a statement released in Washington, DC on July 31, 2025. The Malian authorities have requested more time before deciding on the publication of the Staff Report related to this consultation.
Mali’s economy is projected to grow by 5 percent in 2025. This growth is attributed to strong agricultural output, the launch of lithium extraction, and ongoing expansion in services. However, challenges remain due to reduced foreign aid, lower gold production, and the closure of Mali’s largest mine. Economic prospects may improve if mining activities resume normal operations, with growth forecasted at 5.4 percent in 2026. The fiscal deficit is expected to widen to 3.4 percent in 2025 as government spending rises to address flood impacts. Uncertainty remains high due to various risks facing the country.
Fiscal policy recommendations from the IMF emphasize moving toward fiscal sustainability and aligning with the West African Economic and Monetary Union (WAEMU) fiscal deficit ceiling of 3 percent of GDP. Suggested measures include broadening the tax base, strengthening revenue collection and customs administration, and enhancing spending efficiency while maintaining public investment and support for vulnerable populations.
Reducing domestic policy uncertainty and advancing structural reforms are highlighted as essential steps for unlocking further growth potential. Improving transparency and regulatory stability is considered important for private investment. The IMF also points out the need for better oversight of State-Owned Enterprises (SOEs), especially Energie de Mali, along with stronger fiscal governance and public financial management.
In their assessment, IMF Executive Directors welcomed Mali’s economic resilience amid multiple difficulties such as ongoing conflict, food insecurity, severe floods, power outages, aid reductions, and mining sector disruptions. They warned that significant downside risks persist and urged continued reform efforts backed by capacity development initiatives.
“With lower mining revenues expected and elevated spending needs post flooding,” Directors stated their support for temporary fiscal loosening in 2025 but noted approval of Mali’s commitment “to reduce the deficit below the WAEMU deficit ceiling of 3 percent of GDP by 2027.” They encouraged ongoing work to increase domestic revenue mobilization for medium-term fiscal sustainability while creating space for social spending and capital investment.
Directors highlighted that “high poverty levels and the large number of displaced people amid declining foreign aid” make it crucial to strengthen social safety nets and expand targeted assistance for vulnerable groups. They stressed improving spending efficiency and welcomed progress made under Mali’s staff-monitored program regarding public financial management reforms.
To maintain financial stability, Directors advised improvements in supervisory capacity and risk management frameworks within Mali’s banking sector due to increased exposure to government securities and a recent pause in credit expansion.
On governance reforms, Directors commended steps taken on anti-money laundering (AML/CFT) frameworks that enabled Mali’s exit from the FATF grey list. They called for continued efforts “to bolster anti-corruption frameworks,” establish asset declaration enforcement mechanisms, enhance SOE oversight—particularly judicial integrity—and reinforce mining sector regulations.
Directors concluded by urging implementation of growth-enhancing reforms aimed at overcoming bottlenecks, improving public investment management practices, fostering private sector activity, attracting foreign investment, addressing climate adaptation needs, and diversifying Mali’s economy.
The next Article IV consultation between the IMF and Mali is scheduled according to its standard annual cycle.