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Mali’s military-led government has introduced new taxes on mobile voice calls and mobile-money withdrawals as part of efforts to raise funds for its ongoing fight against a worsening Islamic insurgency.
The move comes as the junta faces dwindling external funding and mounting security threats following its decision to sever ties with Western allies. With limited foreign financial support, the government is now leaning heavily on domestic revenue sources to sustain its operations.
Under the new tax structure:
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- A 10% tax will be imposed on mobile call recharges.
- A 1% levy will apply to mobile-money withdrawals.
- A tax on wireless operators’ revenue has increased from 8% to 10%.
- Levies on alcohol sales have also been reviewed.
Mali’s Economy and Finance Minister, Alousseni Sanou, stated that the government expects to generate $220 million (140 billion CFA francs) from these taxes, with the funds earmarked primarily for security and energy sector investments.
Mali has been under military rule since 2020, when General Assimi Goïta overthrew the democratically elected government, citing security failures. However, despite the coup, militant attacks have continued to escalate, and the country has increasingly distanced itself from Western allies such as the U.S. and France, instead strengthening its partnership with Russia.
The fragility of Mali’s security situation was highlighted just last week when more than 30 people were killed in an ambush in the northeast, underscoring the persistent instability.
“If there’s one thing we want during this transition, it’s to ensure our security and sovereignty,” said Prime Minister General Abdoulaye Maïga, emphasising the government’s commitment to funding national security.
He also revealed that since 2020, Mali has lost over $630 million (400 billion CFA francs) in budget support from international partners.
Beyond taxation, the junta is intensifying efforts to boost revenue from Mali’s natural resources. The government has been pressuring foreign mining firms to pay back taxes and dividends after a state audit revealed a revenue shortfall of up to $950 million (600 billion CFA francs).
In 2023, Mali revised its mining code, increasing the state’s share of profits from natural resource extraction as part of its broader economic strategy.
The junta’s latest fiscal policies signal a significant shift toward self-reliance, but they also raise concerns about the potential financial burden on citizens and businesses. Many Malians already face economic hardship due to political instability, and these new taxes could add further strain to daily life.
As the government continues its quest for financial independence, the challenge remains balancing economic sustainability with the urgent need for security and stability.
Source: Bloomberg
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