Mali : US$2.4 billion expected to be mobilised in the WAEMU capital market
As part of the 2024 edition of the Public Securities Market Meetings taking place in Cotonou, Benin, since Tuesday, January 23, officials from the Malian Ministry of Finance announced that the country plans to raise up to 1,443 billion CFA francs (2.4 billion dollars) on the capital market of the West African Economic and Monetary Union (WAEMU) , with a total of 29 public securities issuances.
« By adopting significant reforms, we are strengthening our budgetary framework and our macroeconomic environment. Our call is simple : join us in the development of our country », expressed a senior official from the ministry to the numerous investment company leaders (SGI) present in the room.
The financial agenda for 2024 is clear: repay 646 billion CFA francs of maturing debt, with an initial investor solicitation of 295 billion CFA francs in the first quarter of the year, followed by an additional request of nearly 455 billion CFA francs between April and June.
Despite the challenges posed by persistent security risks, Malian officials have reaffirmed their commitment to maintaining a balanced budget. The anticipated improvement in tax revenue mobilization, notably through the digitization of tax payments, is expected to result in an average annual growth of tax revenues of 5.1% by 2026, and stricter management of public spending is planned.
Despite a moderate risk rating (BBB) assigned by the Bloomfield agency and stable outlooks on an internationally speculative issuer profile by Moody’s, Mali will need to continue to convince investors. The interest rates demanded by them on the country’s securities have reached an average of 8.06%. This is the second-highest in the Union, just behind Guinea-Bissau.
The average maturity of the securities recently decreased to 2.54 years. Authorities plan to extend it to an average of 5 years by 2026. But more will be needed to convince investors. Mali’s position as the top gold producer in the WAEMU is challenged, particularly by Senegal, where new discoveries have been announced.
Moreover, despite the key role of cotton in the economy, production dropped in 2023, with Benin leading as the top producer of this crucial resource. Finally, insecurity remains a major concern, requiring constant adaptation from the leaders.
