MALI: An Introduction to General Business Law

The following Overview featured in Global 2023 and is awaiting update from the firm.

General Overview of the Country 

Mali is a vast country with nearly 20 million inhabitants, most of whom are young (nearly 70% of the population is under 35 years old). It is located in the west of the African continent. It has no access to the sea, and its imports and exports are mainly through the ports of Dakar, Abidjan, Conakry and Lomé.

The country is crossed by the Niger River for 1700 km and its territory is largely desert. The population is unevenly distributed over this territory: only 10% lives in the northern regions.

The country's economy is based primarily on agriculture (the leading cotton producer in 2021), livestock (second largest herd after Nigeria) and gold, with Mali being ranked third in Africa with an average of 65 tons per year and 14 large mines in production. The country is not very industrialised and the infrastructure is insufficient, with a strong deficit in electricity supply. M

ali is a member of major regional and sub-regional economic groupings, such as the West African Economic and Monetary Union (WAEMU) and the Economic Community of West African States (ECOWAS). As such, it shares a single currency with the seven other member states: the CFA franc (XOF), which has a fixed parity with the euro whereby EUR1 = XOF655.957, with guaranteed convertibility. This is a major asset.

The Legal System 

The legal system in force in the country is based on French civil law. There are two ordinary levels of jurisdiction, specialised courts for trade, labour and administrative matters, and a Supreme Court that rules in cassation.

In commercial and business law, Mali has ratified the OHADA treaty, which means that the OHADA uniform acts are effectively applied. Thus, as regards the creation and management of commercial companies, the same rules apply in Mali as in the 15 other signatory States of the OHADA treaty. In these matters, it is the Common Court of Justice and Arbitration of OHADA (CCJA) based in Adidjan that rules in cassation.

Mali Bar Association 

325 lawyers are currently registered with the Mali Bar Association (Ordre des Avocats du Mali), 90% of whom are based in Bamako. As Mali is a member of the WAEMU, Malian lawyers can practise and even settle freely in the eight member states.

Access to justice is limited, due to the low income of the population and the low level of education, which means that people are not always aware of their rights.

Today, the business environment is strongly affected by the security and political crisis, which has a strong impact on the economy and therefore on legal activity.

In the field of justice, many reforms have been announced, including the creation of specialised jurisdictions for cybercrime, a reform of the Superior Council of the Judiciary, a review of the code of criminal procedure, and a strengthening of the fight against corruption and illicit enrichment.

The major reforms underway that may impact legal activity include the proposed new constitution.

The Investment Framework 

In Mali, the incorporation of companies is open to foreigners. There is no requirement for a national to participate, and the capital can be held 100% by a foreigner.

The country has an investment code, which grants national treatment to foreigners, guarantees the free transfer of investment income and safeguards the investor against the risk of expropriation. The code provides for recourse to arbitration in the event of investment-related disputes.

One of the sectors that attracts the most foreign direct investment is the mining sector, which has not really been affected by the various crises mentioned above. However, two recent decisions by the Malian government are likely to create some misunderstanding, or even caution on the part of investors. First, a national exploration and mining company was created, and then the authorities decided to suspend the issuance of any new permits until further notice.