ADF Helps Mali Improve its Balance of Payments
The ADF loan is a balance of payments support for use in financing goods and services imports originating exclusively from ADB Group member countries. Amounting to 8.6 million units of account (US$ 12.63 million), the loan will facilitate the implementation of additional reform measures under the third Structural Adjustment Programme (SAP III) and the new Cotton Sector Action Plan.
Over the 2002-2003 period, the reforms implemented under SAP III mostly focused on the rehabilitation of the cotton sector and the financial restructuring of the Malian Textile Development Company (Compagnie malienne de développement des textiles, CMDT), and were conducted to confront the 1999-2000 economic crisis in Mali following the slump in cotton production in the wake of falling prices.
SAP III contributed to Government divestiture by refocusing CMDT's operations around cotton and maintaining the competitiveness of the sector and network. Within that Program context, the Government pursued liberalization measures in the key sectors (cotton, gold, cereals, agro-industry and services) and CMDT's privatization. Between 2001 and 2003, the economy once again grew by 6.7% as it did over the 1997-1999 period. Thanks to that performance, the country reached the enhanced Heavily Indebted Poor Countries Initiative completion point in March 2003.
The Bank Group's operations in Mali started in 1970. To date, total commitments stand at UA 552.4 million, equivalent to US$ 811.4 million.