Overview of Mali's Informal Economy
The informal economy represents a considerable share of economic activity in Mali, employing more than 70% of the active population according to data from the National Institute of Statistics (INSTAT). This sector constitutes a fundamental pillar of the Malian economy, particularly in a context where the formal sector struggles to absorb the growing workforce.
Informal activities are mainly concentrated in:
- Retail trade and street vending
- Traditional crafts (textiles, metallurgy, carpentry)
- Subsistence agriculture and livestock
- Proximity services (repair, hairdressing, catering)
- Urban transport (taxis, motorcycle taxis)
Legal and Regulatory Framework
Laws Governing the Informal Economy
Mali has a specific legal framework to guide the transition to formality:
- Law No. 2016-061 of December 30, 2016 establishing the Commercial Code, which defines different business statuses
- Decree No. 2019-0853/P-RM of October 31, 2019 setting the procedures for creating and operating micro-enterprises
- Law No. 2017-020 of May 11, 2017 on the promotion of employment and vocational training
Support Institutions
Several organizations support formalization and self-employment:
- National Employment Agency (ANPE): professional integration support
- Mali Investment Promotion Agency (API-Mali): business creation facilitation
- Women's Income-Generating Activities Support Fund (FAARF): specific financing for women entrepreneurs
- Rural Micro-Enterprise Support Program (PAMER): rural development support
Activity Formalization Process
Micro-Enterprise Creation Steps
Formalizing an informal activity follows a simplified process:
- Declaration of existence with the Business Formalities Center (CFE)
- Obtaining the National Business Identification Number (NINE)
- Registration in the Trade and Movable Credit Register (RCCM) for commercial activities
- Tax declaration with the General Directorate of Taxes (DGI)
- Affiliation with the National Social Security Institute (INPS) for social protection
Formalization Costs
Creation fees vary according to the type of activity:
- Individual micro-enterprise: approximately 25,000 XOF
- Single-Person Limited Liability Company (SARLU): approximately 150,000 XOF
- Association or cooperative: approximately 50,000 XOF
Note: These amounts should be verified with competent authorities as they may change.
Tax Regimes for Self-Employment
Micro-Enterprise Taxation Regime
Mali offers several tax regimes adapted to small activities:
- Synthetic tax regime: for annual turnover below 50 million XOF
- Simplified real regime: for turnover between 50 and 500 million XOF
- Normal real regime: beyond 500 million XOF
Tax Advantages
New businesses benefit from incentives:
- Exemption from profit tax for the first 3 years (to be verified)
- 50% reduction on synthetic tax in the first year
- Possibility of staggered tax payments
Growth Sectors for Self-Employment
Agricultural Opportunities
Agriculture offers numerous self-employment possibilities:
- Peri-urban market gardening: vegetables for urban markets
- Poultry farming: strong local demand
- Agri-food processing: shea, mangoes, cereals
- Beekeeping: honey and derivative production
Services and Crafts
Proximity services present significant potential:
- Electronic and household appliance repair
- Cleaning and maintenance services
- Training and private lessons
- Art crafts and decoration
- Delivery and transport services
Digital Economy
The digital sector offers new opportunities:
- Mobile money transfer services
- Website and application development
- Computer training
- E-commerce and online sales
Access to Financing
Microfinance Institutions
Several structures offer adapted financing:
- Kafo Jiginew: Mali's largest microfinance institution
- Microcred Mali: specialized in micro-enterprise financing
- Soro Yiriwaso: focus on women entrepreneurs
- Community banks: local and solidarity financing
Government Programs
The Malian state supports self-employment through:
- National Fund for Vocational Training and Apprenticeship Support (FAFPA)
- National Youth Self-Employment Promotion Program (PROCEJ)
- Private Sector Guarantee Fund (FGSP)
Challenges and Solutions
Main Obstacles
Self-entrepreneurs face several challenges:
- Limited access to formal credit
- Lack of business management training
- Insufficient basic infrastructure
- Unfair competition from the informal sector
- Perceived administrative complexity
Success Strategies
To succeed in self-employment in Mali:
- Get training: acquire technical and managerial skills
- Build a network: join professional associations
- Innovate: adapt products and services to local needs
- Plan: develop a realistic business plan
- Save: build working capital before starting
Future Prospects
Mali's informal economy is evolving toward greater structure with:
- Digitalization of financial services
- Emergence of e-commerce platforms
- Development of integrated value chains
- Creation of special economic zones
- Strengthening of entrepreneurship support policies
These developments offer new opportunities for Malian self-entrepreneurs wishing to formalize their activities and access new markets.