The Malian government has outlined plans to increase its borrowing over the next three years, with projected needs of 1,858.5 billion FCFA in 2027, 2,044.1 billion FCFA in 2028, and 2,467.2 billion FCFA in 2029. According to the Medium-Term Public Debt Strategy 2027-2029, prepared by the Ministry of Economy and Finance, the total borrowing needs for the period are estimated at nearly 6,370 billion FCFA, equivalent to approximately 9.7 billion euros.
The strategy prioritizes regional markets while seeking to extend loan maturities and maintain access to concessional financing. As of the end of 2026, Mali's public debt is projected to stand at 7,447 billion FCFA, representing 38.8% of the country's Gross Domestic Product (GDP). This ratio remains below the 70% ceiling set by the West African Economic and Monetary Union (UEMOA), of which Mali is a member.
The current debt structure consists of 4,372.4 billion FCFA in domestic debt, accounting for 58.7% of the total, and 3,074.8 billion FCFA in external debt, making up 41.3%. The average cost of the public debt portfolio is estimated at 3.7%, with domestic debt carrying an average interest rate of around 5.7%. External debt, on the other hand, has a concessionality rate of 80.9%.
To mitigate refinancing risks, the Malian government plans to extend loan maturities on the regional market, favoring securities with terms exceeding five years. The strategy also involves increased recourse to concessional and semi-concessional external financing, particularly from multilateral institutions such as the International Development Association (IDA), the African Development Fund (ADF), and the International Fund for Agricultural Development (IFAD).
For 2027, Mali's borrowing needs are expected to decrease by 7.4% compared to 2026, mainly due to lower amortization on market debt following reduced reliance on short-term treasury bills. The domestic market is anticipated to remain the primary source of financing, covering around 95.2% of new needs in 2027, while external financing will account for 4.8%.
The share of external financing is expected to increase to 12% by 2029. Authorities plan to prioritize highly concessional and concessional loans from institutions like the IDA, ADF, and IFAD. In addition to borrowing, the government aims to strengthen domestic resource mobilization, with a target tax revenue of 15.8% in 2027.
The Malian government's strategy aims to cover state financing needs at the lowest cost while limiting debt-related risks and preserving debt sustainability. The implementation of this strategy will be crucial in maintaining the country's macroeconomic stability and meeting its development objectives.
Key points
- Mali plans to borrow nearly 6,370 billion FCFA by 2029 to meet its financing needs.
- The strategy prioritizes regional markets and concessional funding while seeking to extend loan maturities.
- The country's public debt currently stands at 7,447 billion FCFA, representing 38.8% of GDP.
