By Special Correspondent: Omar Dembele
Mali’s Council of Ministers has approved a draft law ratifying a loan agreement worth more than CFAF 4.4 billion with the Arab Bank for Economic Development in Africa (BADEA).
The operation, totaling 4,413,816,900 CFA francs, will finance Mali’s contribution to the capital increase of the African Solidarity Fund.
The agreement was signed on June 26, 2025, in Bamako and Riyadh between the Malian government and BADEA.
On September 10, the Council of Ministers endorsed the ratification bill, paving the way for the effective implementation of the financing. According to the official communiqué, the loan will strengthen Mali’s participation in the African Solidarity Fund, aimed at improving small and medium-sized enterprises’ access to investment credit.
The African Solidarity Fund, a multilateral guarantee institution based in Niamey, supports member states and enterprises by facilitating access to financing for productive projects. Its capital increase is intended to boost its intervention capacity, particularly in economies facing structural constraints or urgent financing needs.
The BADEA loan of over 4.4 billion CFA francs will be dedicated exclusively to Mali’s subscription to the Fund’s capital increase. This contribution is expected to enhance the availability of guarantees and reinforce support for Malian SMEs seeking investment financing.
The financial terms of the agreement, including the interest rate, repayment schedule, and modalities, have not been disclosed. The deal falls within the broader framework of financial cooperation between Mali and BADEA, which has been a regular contributor to development projects and credit access mechanisms across the continent.
MD/sf/lb/as/APA