Improving electricity access: Why Mali turned down $30 billion from the World Bank

As part of strengthening Mali’s relations with the Bretton Woods institutions, the Minister of Economy and Finance, Alosni Sanou, led a Malian delegation to the 2024 Spring Meetings of the International Monetary Fund (IMF) and the group
The World Bank Meetings will be held in Washington, the United States from April 15 to 20, 2024.

The ongoing crisis in Mali’s energy sector and the ensuing recurring power outages that have caused numerous inconveniences to the national economy and the people were at the heart of his discussions with World Bank officials.

A week ago, Minister Alosni Sanou secured 150 million liters of fuel supplies worth 49.2 billion CFA francs from neighboring Niger and succeeded in obtaining approval from the Bretton Woods institutions for a grant of 60 million CFA francs, or about 37 billion CFA francs, to improve electricity supply in my country, especially in Bamako. However, the Bank’s acquiescence was conditional.

She agreed to provide Mali with $60 million immediately to enable the Mali Energy Company to meet its fuel or energy purchase needs. However, these purchases should be made from the Organization’s countries in order to implement
Value of Sengar River (OMVS).

However, Article 34 of the Constitution is very clear: Article 34: Public action is guided by the principle of respect for national sovereignty, the sovereign choice of the people and the defence of their interests. In other words, Mali will not give up its choice of partners, even if it is to improve energy supply as a top priority. Accepting $60 million from the World Bank under conditions that undermine our sovereignty violates our Constitution.
And to show our AES allies, especially those in Niger, that for the sake of 60 million people, we are ready to turn our backs on them. But no, no.

That is why, out of respect for our dignity and sovereignty, Mali has rejected assistance from the World Bank.

May God bless him and his wife.

In full sovereignty, the Government, through the Minister of Economy and Finance, Aloussni Sanou, launched on May 8, 2024 a collective budget or corrective fiscal law (LFR), the only law that allows the Government to modify during the year the provisions of the Initial Fiscal Law (LFI), in particular the general data concerning the state budget expenditure ceiling and the budget balance. For the Government, the issue is the strengthening of budgetary appropriations aimed at operations responsible for ensuring the security of the national territory, with a budget amounting to 190.102 billion CFA francs, and the budget envelope affecting operating subsidies in favor of the Malian Energy Company (EDM-SA) ) 30 billion CFA francs. The World Bank wants to oblige us, in non-sovereign terms, about 60 million US dollars.

Thus, the distinguished members of the National Transition Council unanimously adopted this collective budget on Thursday, June 27, 2024. According to the distinguished members of the National Transition Council (CNT) who adopted this project, and therefore with the Government, this modification does not affect the budget and financial balance of the initial 2024 Finance Law, and only concerns budget expenditures. The preliminary forecasts of revenues, resources and cash flow expenditures remain unchanged.

The following is the explanation given by the Minister of Economy and Finance, Aloussni SANOU, after the vote of the distinguished members of the National Transitional Council (CNT) on Thursday, June 27, 2024, on the revision of the Financial Law.

This choice was prompted by two major events: the adoption by the National Transitional Council on December 22, 2023 of the Malian State Budget for 2024, amounting to 3,070 billion CFA francs. In the first quarter of 2024, when we began to implement the budget, major events occurred in the life of the country, related to the different crises that Mali has been through. The State was therefore obliged to establish a budget collective, which included reviewing the initially adopted budget and reviewing priorities.

The collective aims to strengthen the budget, for example at the defence level, where we have increased it by about 180 billion CFA francs. We have also strengthened the budget of the Ministry of Energy, increasing the annual subsidy to EDM companies from 30 billion CFA francs to 60 billion CFA francs.
Behind this collective of 30 billion CFA francs, the CFA has increased by 100%.

Sigma