Mali could boost its economy after withdrawing from ECOWAS
Bamako, Mali (PANA) - Mali could give its economy a further boost following its joint decision with Burkina Faso and Niger to withdraw from the Economic Community of West African States (ECOWAS), and will automatically see an increase of 21 billion CFA francs, the Minister of Economy and Finance, Alousséni Sanou, explained to the local press on Wednesday.
He was accompanied by his colleague in charge of Foreign Affairs and International Cooperation, Abdoulaye Diop.
Mr. Sanou's explanation followed an extraordinary Council of Ministers meeting chaired by the President of the Transition, Colonel Assimi Goïta, to rule on the historic decision by Mali, Burkina Faso and Niger, the three founding members of the Alliance of Sahel States (AES), to withdraw immediately from the Economic Community of West African States.
Mali's Minister of Economy and Finance pointed out that this decision had been planned in view of the threat of economic sanctions hanging over the populations of these three states.
"This withdrawal from ECOWAS gives us opportunities in terms of development, given the potential of the countries of the Alliance of Sahel States (AES) in several sectors such as agriculture and energy, among others.
The Alliance is an organization recently set up by the three countries to combat terrorism and promote development in the Sahel region.
"Withdrawing from ECOWAS will enable us to develop an external market and ensure growth from this external economy, which we will find it easier to develop today," explained Mali's Minister of the Economy and Finance.
As for the short-term financial impact, he maintained that Mali would be a winner.
According to his explanations, the country has a trade deficit with the ECOWAS-UEMOA zone, adding: "59% of our imports come from the ECOWAS-UEMOA zone. And 20% of these imports come from ECOWAS countries outside the UEMOA zone."
He said Mali's exports were almost entirely directed towards countries outside the ECOWAS zone.
According to him, Mali exports mainly gold, cotton and inputs, with only livestock being exported to ECOWAS countries.
"Mali's overall exports to the ECOWAS zone represent only around 9% of its total exports. This means that the country has a shortfall of nearly 120 billion CFA francs because it is part of ECOWAS," explained Sanou.
This shortfall is mainly due to the Common External Tariff of the ECOWAS zone, which is applied to all imports.
"A rate of 18% applies," explained the Malian Minister for the Economy and Finance, adding that Mali does not benefit sufficiently from the Common External Tariff because it exports much more outside the ECOWAS zone.
According to him, after leaving ECOWAS, Mali's budget will automatically increase by 21 billion CFA francs.
Sanou also assured the audience that the country would benefit from other investment-related advantages.
"Previously, investors chose ECOWAS coastal countries because of the facilities offered by their seaports. This means that Malian markets were flooded with products manufactured by companies based in other countries. So these beneficiary countries benefited from all the added value.
"With our country's withdrawal from ECOWAS, we will now be setting our own tariffs, and direct investment will be directed more towards our country," explained Sanou, who is convinced that withdrawing from ECOWAS will benefit Mali.
"We are doing everything we can to seize these opportunities and make them a reality for us," he said.
He reassured the population that the government will set up an inter-ministerial commission to monitor all the markets and indicators so that adjustments can be made whenever necessary.
Explaining Mali's withdrawal from ECOWAS, the Malian Minister of Foreign Affairs and International Cooperation also reassured his compatriots living in ECOWAS member countries that discussions were underway with these states, on a bilateral level, to see to what extent the Malian authorities will be able to address their concerns.
"Some members of the government will be contacting our compatriots living in these countries to give them all the facts and hear their concerns. Be that as it may, the government will work assiduously to put in place new arrangements that preserve their status," said Diop, adding that relations remain with the WAEMU countries, which are also members of ECOWAS.
Last Sunday, in a joint communiqué, the three countries of Burkina Faso, Mali and Niger, all led by militaries, decided to withdraw from ECOWAS without delay.
-0- PANA GT/JSG/BBA/RA 1Feb2024
