Mali Clears Domestic Arrears After Mining Revenue Boost

Mali has taken a significant step toward stabilising its domestic economy after approving a large scale payment to local companies, funded by a sharp increase in mining revenues. The government ordered the settlement of long outstanding arrears following the successful recovery of back payments from mining firms operating under the country’s revised mining legislation. This move signals an effort to restore confidence among local service providers while improving liquidity in the domestic economy.

The payments, totalling 312 billion CFA francs, are intended to clear arrears linked mainly to services delivered to the state during 2023 and 2024, with some invoices from 2025 also included. Many local companies had faced prolonged delays in payment, placing strain on cash flows and limiting their ability to sustain operations. By authorising these disbursements, the government aims to ease pressure on domestic businesses and re energise sectors that rely heavily on public sector contracts.

The improved fiscal position stems from the recovery of approximately 761 billion CFA francs from mining companies, collected through stricter enforcement of the 2023 mining code. Under this framework, mining firms were required to transition to the new legal regime, which includes revised fiscal terms and stronger compliance measures. The operation to recover outstanding payments began in September 2024 and represents one of the most assertive efforts by the state to ensure that mineral revenues are fully captured.

Mining has become an increasingly important pillar of Mali’s public finances, particularly as the country faces rising security related expenditures. The government has emphasised that enhanced revenue collection from the sector is essential to sustaining public spending at a time when Mali is navigating reduced military cooperation with Western partners and higher domestic security costs. In this context, mining revenues are playing a stabilising role, helping the state meet its immediate financial obligations.

Looking ahead, the clearance of domestic arrears could have broader positive implications for Mali’s mining industry and economy. Improved payment discipline may strengthen relationships between the government, local contractors, and mining operators, while reinforcing the credibility of the new mining code. For Africa’s wider extractive sector, Mali’s experience highlights how tighter regulatory enforcement can bolster public finances, though it also underscores the need to balance revenue collection with maintaining an attractive investment climate in a challenging security environment.

Mini-Glossary

• Domestic arrears: Outstanding payments owed by the government to local companies or service providers.
• Mining code: A legal framework governing mineral exploration, production, taxation, and state participation.
• Fiscal enforcement: Actions taken by authorities to ensure taxes, royalties, and other obligations are fully paid.
• Public finances: The management of government revenues, expenditures, and debt.
• Security pressures: Increased spending demands related to national defence and internal security challenges.

Editor: Vural Burç ÇAKIR