The Republic of Mali is home to a significant diaspora, comprising approximately 4 million individuals residing abroad, with a notable presence in Europe, particularly in France where around 200,000 Malians are located. This diaspora has made substantial contributions to the economic development of the country, remitting over US$1 billion in 2021 alone, which equates to nearly 6 per cent of Mali’s GDP.
Many members of the diaspora are eager to make a meaningful societal and financial impact by investing in various businesses, particularly those in the agricultural sector owned by fellow diaspora and their relatives. However, the lack of reliable investment channels has presented a significant challenge in realizing this objective.
To address this issue, the Diaspora Investment in Sustainable Rural Youth Entrepreneurship in Mali programme, co-financed with the European Union Trust Fund, has been established to provide tailored investment options that meet the specific needs of the diaspora.
Recognising the potential impact of diaspora investments, the International Fund for Agricultural Development (IFAD) seeks to advocate for greater support from donors and decision-makers, as well as raise awareness of available investment options among the diaspora. This is achieved through the dissemination of relevant data, provision of information on productive investment and financial literacy, and the facilitation of events designed to engage and educate potential investors.
As part of the programme, pilot projects have been initiated in collaboration with two high-impact investment firms, Investisseurs et Partenaires (I&P) and FADEV. These projects focus on investing in local companies in Mali that demonstrate the potential for generating social or environmental impact. Funded companies stand to benefit from an alternative to traditional and often unattainable bank loans, gaining access to patient capital with investment periods typically spanning seven years. Additionally, these companies are not required to provide collateral and receive strategic and operational support.
The programme operates within the framework of the Financing Facility for Remittances (FFR), a platform that allows IFAD to identify the investment preferences and needs of the diaspora, enabling the development of models tailored to meet their expectations.
A report funded by the European Union and developed by Red Mangrove Development Advisors and Adept highlighted the interest of the Malian diaspora in contributing to the development of small and medium-sized businesses, especially within the agricultural sector. Access to appropriate training, information, and financial products are critical factors that influence their investment decisions.
Furthermore, research conducted by IFAD underscores the diaspora’s inclination to invest in the agricultural sector, particularly in businesses owned by fellow diaspora and their relatives, indicating a clear opportunity for targeted investment initiatives.
With the expertise of dedicated specialists such as Guillaume Top, Diaspora Investment Specialist (Mali), and Frédéric Ponsot, Senior Technical Specialist on Remittances, Diaspora and Inclusive Finance, IFAD remains committed to facilitating diaspora investments and promoting sustainable rural youth entrepreneurship in Mali.