Mali is looking to unlock as much as 500 billion CFA francs ($800 million) through a mining-backed infrastructure fund as the government seeks to channel more revenue from the country’s mineral sector into roads, electricity, water and transport projects.

The plan comes as Mali pushes ahead with efforts to increase state earnings from its mining industry following changes to its mining rules in 2023. The reforms raised royalty payments, increased government participation in mining projects and introduced new contributions from mining companies.

Finance Minister Alousseni Sanou said the fund could help Mali raise additional financing for major development projects, giving the government another way to support infrastructure investment while relying less on traditional sources of public funding.

The move reflects a wider effort by resource-rich African countries to secure greater benefits from their natural resources and use mining income to support public services and economic development.

Mining fund builds new source of infrastructure financing

Speaking on state television after the first meeting of the Energy, Water and Transport Infrastructure Development Fund, Sanou said the fund collected 109.14 billion CFA francs($191.47 million) between Jan. 1, 2025, and June 30, 2026.

Established in 2023, the fund receives contributions from large and small-scale mining permit holders. Companies pay 1% of quarterly turnover and 10% of ad valorem taxes during a mine’s first five years, with the turnover contribution increasing to 2% afterward.

Sanou said the fund generates at least 50 billion CFA francs$($87.72 million) each year and could be used to secure much larger financing for infrastructure projects across the country.

Mali expands mining revenue plans amid sector reforms

The government’s push follows a mining sector overhaul that has changed how revenues from gold and other minerals are shared between the state and mining companies.

Officials said a government audit completed in December recovered 761 billion CFA francs($1.34 billion) in alleged unpaid obligations from mining companies. The findings have added pressure on operators to meet their financial commitments under the revised mining framework.

Infrastructure and Transport Minister Dembele Madina Sissoko said projects submitted to the fund include railway developments, road construction, boat purchases and initiatives linked to state-owned Mali Airlines SA.

Across Africa, governments in resource-producing countries have been looking for ways to capture more value from their mineral wealth. Ghana, for example, has moved to use mineral revenues to support its “Big Push” infrastructure programme.

Africa’s gold producer seeks bigger returns from natural resources

Mali is one of Africa’s largest gold producers, with mining playing a central role in exports, government revenue and employment.

The sector has attracted major international operators, including Canada’s Barrick, while the government has sought a larger role in managing mineral resources.

The country’s new approach highlights a broader debate across Africa over how mining revenues can be used to build infrastructure and improve living standards.

Governments are increasingly seeking agreements that provide greater returns for host countries while maintaining investment from mining companies.

Mali’s infrastructure fund is expected to serve as a key financing tool as the government works to expand transport networks, improve energy supply and support economic activity through public investment.