Problems and Prospects of Attracting Foreign Direct Investment in Mali

The economic situation of the Republic of Mali according to the World Bank and the country’s GDP growth has fallen for the third year in a row, reaching 4.7% in 2018 are considered in this article. However, the decline in growth is believed to be slowing down by gold exports and good harvests from previous years. These two factors make it possible to keep inflation at the level of 1.718%. The GDP deficit is also partially covered by the growing exports of agricultural products, primarily wool and gold. So, its exports have increased by 21% over the past 3 years. The authors also studied the place and role of direct foreign investment in the country’s economy. Foreign direct investment for developing countries in Africa is the most important factor positively affecting economic growth. The Republic of Mali, despite an abundance of cheap labor and an abundance of valuable natural resources, is one of the most economically backward countries in Africa. The most important obstacles to the inflow of foreign investment and the acceleration of economic growth are the political instability of the state, a high level of corruption, weak legislation, excessive tax administration, and difficult access to energy resources. The measures, which are presented in this article, are designed to increase the inflow of foreign investment and accelerate the economic growth of the Republic of Mali. The authors also analyze the business environment in Mali and the competitiveness in West Africa, especially in Mali, reforms undertaken by the state to promote investment and protect investors. In 2019, the competitiveness of the sub-region in Mali declined. However, in the past few years, there has been a positive trend. The authors believe that this can be linked to an increase in investment from China, although the competitiveness of Mali is still at a low level.