October 7, 2022

The Political Chronicle

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Mali seeks to address economic problems caused by sanctions


Assets are frozen, financial transactions are blocked, and borders besides essentials and pharmaceuticals are besieged, and Mali is under unprecedented sanctions. In the country, some are concerned that the economic situation is deteriorating rapidly, while others are considering how to legally circumvent the ECOWAS ban.

On Monday, January 10, the State of Mali will have no access to WAEMU Central Bank or its own assets held there. In the country, it is not possible for banks to seek funding from the central bank on a daily basis.

Today, banks make payments to BCEAOs only when they justify their intention to fund exceptions to the BCEAO restrictions. », Etienne Fakaba Sissoko, economist at the Center for Research, Politics, Economics and Social Analysis in Mali, Crapes.

Although Mali’s treasury has built up war reserves, the country will not be in a state of financial autonomy for long. ” From a cash flow perspective, we have the option of holding for a month. Beyond two, it is unacceptable He adds.

Read more: Mali: Impact of Egovas sanctions

Barriers containing Teja Wu air

Among big business, these barriers have the air of Teja Woo. Moussa Diarra is the boss of the Recoma Group. To him, “ There will be an impact, it is obvious. It will not be less and will be continuous. But, here we are, we will accept. “Adaptation, in other words, finds other ways of importing and exporting than the five borders that ECOWAS has closed with its neighbors.

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Already in 2012 the president plotted to overthrow the ATT (Amadou Toumani Touré, Editor’s note), There were obstacles. Also, I remember, the merchants came together … we told ourselves not to reduce the distribution of the country, we must play our patriotism; Those who landed in such a port, sometimes went to another place a thousand kilometers away … and we passed through the port of Guinea, via Mauritania. , Moussa Diarra adds.

Read more: Mali: Civil society condemns ECOWAS sanctions

Tough and expensive adaptation to obstacles

In the Guinean and Mauritanian ways, Etienne Fakaba Sissoko did not believe it.

In Guinea, for example, the port is not large enough to handle commercial traffic from Mali. So, if Mali’s economy is diverted to this port, the overflow route at this level (congestion, note) will take two to three days. Compared to Algeria, it is necessary to go through the far north to get out of state control. On the other hand, you have Mauritania, with which we do not even have reliable roads.

Obstacles can be difficult to adapt to, but above all expensive. And the cost of living is likely to explode, economists and entrepreneurs predict.