Mali has introduced new taxes on mobile voice calls and mobile-money withdrawals to help fund its fight against an escalating Islamic insurgency.
Why it matters
The taxes come as the military-led government struggles with dwindling external funding and growing security threats.
The junta has severed ties with Western allies and is relying more on domestic revenue sources.
The details
- A 10% tax will be imposed on mobile call recharges, and a 1% levy will apply to mobile-money withdrawals, said Economy and Finance Minister Alousseni Sanou.
- The government expects to raise 140 billion CFA francs ($220 million) to finance security and energy.
- A tax on wireless operators’ revenue increased to 10% from 8%, alongside a review of levies on alcohol sales.
The big picture
- Mali has been under military rule since 2020, when General Assimi Goita ousted the elected president, citing security failures.
- Despite the coup, militant attacks have surged, and Mali has distanced itself from Western allies like the U.S. and France in favor of closer ties with Russia.
- Last Friday, over 30 people were killed in an ambush in the northeast, highlighting ongoing instability.
What they’re saying
“If there’s one thing we want during this transition, it’s to ensure our security and sovereignty,” said Prime Minister General Abdoulaye Maiga.
He noted that since 2020, Mali has lost over 400 billion CFA francs in budget support from partners.
Zoom out
- The government is also pressuring foreign mining firms for back taxes and dividends after a state audit found a revenue shortfall of up to 600 billion CFA francs.
- In 2023, Mali updated its mining code to increase its share of natural resource profits.
Between the lines
The junta’s push for self-reliance signals a shift in economic strategy but risks further burdening citizens and businesses already grappling with instability.
Source: Bloomberg
