New taxes on telecommunications and mobile money came into effect this Wednesday, March 5 in Mali, affecting top-ups and withdrawals, and provoking mixed reactions.
This Wednesday, Malian consumers are facing new taxes on Telecommunications services and mobile money transactions. These measures, initially scheduled for February 19 and then postponed to February 28, 2025, are now effective, provoking mixed reactions among the population.
The new taxes applied to telecommunications and mobile money services mainly concern telephone top-ups and financial transactions. From now on, a 10 per cent contribution is levied on all credit top-ups, whether they are made via ATMs, top-up cards or mobile money services such as Orange Money and Moov Money.
Thus, a top-up of 1,000 CFA francs now only credits 900 CFA francs to the user’s account. In addition, a 1 per cent levy applies to all cash withdrawal transactions via mobile money platforms, increasing withdrawal fees for an amount of 10,000 CFA francs from 100 CFA francs to 200 CFA francs, shared between the operator and the State.
These levies are intended to fund the Fund for Supporting Basic Infrastructure and Social Development Projects, as indicated in the Orange Mali press release sent to its customers.
Reactions from telecom operators
Telecom operators quickly informed their customers of the application
of these new taxes. Messages were sent to explain the terms of the levies, thus ensuring transparency in the implementation of these tax measures.
The introduction of these taxes comes at a time when the telecommunications sector in sub-Saharan Africa is already subject to significant tax pressure.
According to a GSMA study, in 2021, the mobile sector contributed $9 billion to government revenues in 18 countries in the region, representing on average 30 percent of their turnover. This tax burden, often higher than the sector’s economic contribution, can hamper the affordability and expansion of mobile services.
Consumer reactions and economic consequences
The introduction of these taxes has sparked mixed reactions among consumers. Many express concern about the impact of these levies on their purchasing power, already weakened by the country’s multiple crises, including energy, security, political, economic and financial.
Consumer rights organisations have also expressed their reservations calling for transparent and efficient management of the funds collected. They stress the need to ensure that these resources are effectively used for infrastructure projects and social programmes, in line with the government’s commitments.
Increase in institutional budgets
In parallel with the introduction of these taxes, it is notable that the budgets of certain transitional institutions have seen significant increases. The budget of the National Transitional Council (NTC) has increased from 11.726 billion CFA francs in 2024 to 13.897 billion CFA francs in 2025, an increase of 2.171 billion CFA francs. Similarly, the budget of the Transitional Presidency has been revised upwards, from 17.216 billion CFA francs to 17.748 billion CFA francs.
Controversies over the procedure for adopting taxes
The implementation of these taxes without the prior approval of the NTC has raised questions. Indeed, although an order had been issued for their application, some believe that these measures should have been submitted to the CNT, whose next session is not scheduled until April 2025. This situation fuels the debate on the legitimacy of applying these taxes without a thorough parliamentary review.
The application of the new taxes on telecommunications services and mobile money transactions in Mali comes in an already fragile economic and social context.
While the government justifies these measures by the need to finance infrastructure and social development projects, their impact on the daily lives of citizens and the perception of an increase in institutional spending are giving rise to debate. Transparency in the management of the funds collected and effective communication on their use will be essential to ease tensions and strengthen citizens’ trust in the authorities, observers believe.
MD/ac/Sf/fss/gik/APA