Mali’s initiative to use mining revenues to fund investments in energy, water, and transportation is a significant and noteworthy attempt to transform gold into a public service. From the beginning of 2025 to the end of June 2026, 109.14 billion CFA francs had accumulated in the fund. The Bamako government aims to leverage this resource, which has the potential to generate at least 50 billion CFA francs annually, to reach 500 billion CFA francs. Railway, highway, river transport, and Mali Airlines projects are included in the initial investment pool.[i]
This initiative stems from the 2023 mining law. The regulation mandates that large and small mining license holders transfer 1% of their quarterly turnover, plus 10% of their value-based tax for the first five years, to an infrastructure fund. This turnover share increases to 2.5% after the fifth year.[ii] Thus, a certain portion of the profits from rising gold prices and production is allocated to essential services without becoming invisible within the general budget.
Resource sovereignty goes beyond legal control over the mining site; it concerns the extent to which economic value remains within the country. The new system aims to increase the state’s share in projects, tax collection, and the participation of domestic companies. The announcement that 761 billion CFA francs have been collected from mining companies as a result of government oversight demonstrates Bamako’s entry into a more assertive period in its relationship with the sector.[iii]
However, revenue collection and development production require different levels of government capacity. The former requires an effective administration that monitors licenses, measures production, and collects taxes. The latter necessitates institutions that prioritize projects according to need, oversee tenders, complete investments on time, and cover operating expenses for years to come. A well-designed investment program, combining budgetary discipline with field knowledge, can reduce the gap between political preferences and real service deficiencies. Mali’s challenge in this regard is to translate its success in collecting mining revenue into the quality of public investment.
Investment in electricity could produce the fastest societal result of this transformation. Uninterrupted power directly impacts the cold chain in healthcare facilities, digital resources in schools, production in small businesses, and the processing of agricultural products. Distribution lines and local production facilities established in rural areas can also strengthen access to the state for communities under security pressure. Where electricity reaches, gold revenue transforms from an abstract budget item into a tangible service that regulates daily life.
Investments in clean water are also central to human security. Previous projects in Bamako, which provided safe drinking water to more than 1.3 million people, demonstrate the broad impact of infrastructure on health and quality of life.[iv] Directing new funding towards water production facilities, reservoirs, and distribution networks could reduce the time women and children spend fetching water. This could also have lasting consequences in terms of combating infectious diseases and building urban resilience to climate pressures.
The transportation aspect has the potential to reduce the disconnect between resource regions and the national economy. Developing roads, railways, and river transport can facilitate the transport of agricultural products to market, reduce food losses, and lower the cost of domestic trade. However, if project selection is limited to corridors that accelerate the export of minerals, the societal benefits will be limited. Priority is expected to be given to lines connecting production centers to hospitals, schools, and regional markets.
The share of the fund that mining regions receive will determine the legitimacy of the implementation. Local communities bearing the environmental burden, land pressure, and changes in water use of gold production expect to be visible in income distribution. Establishing a clear balance between large-scale national projects and the basic needs of producing regions is crucial. Therefore, the regular and meaningful direct participation of municipalities, professional organizations, and regional representatives in the decision-making process, from project preparation to monitoring, would be highly beneficial. The social impact of resource sovereignty is measured not only by how much revenue the state collects from mines, but also by what services this revenue translates into in daily life.
The fund’s goal of reaching 500 billion CFA francs relies not on direct spending of the accumulated funds, but rather on securing future revenues for financing. This method could accelerate large investments. However, a decline in gold prices, production cuts, or disputes with companies could weaken cash flow. When borrowing terms, revenue assumptions, and repayment schedules are not made public, today’s claim to sovereignty could become tomorrow’s financial burden.
Negotiations with mining companies must therefore be conducted with economic balance in mind. The state’s demand for a higher share is understandable from a national interest perspective. However, retroactive or unpredictable application of the rules could suppress production, new investment, and the fund’s revenue stream. The potential losses to growth and public revenue from a disruption at the country’s largest gold mine demonstrate that sovereign policy must be supported by legal predictability.
Transparency can be more crucial than the amount of funding. The law mandates that annual reports on fund use be submitted to local councils for approval and made public. For this provision to be fully effective, the cost of each project, the tendering method, the contractor, the completion rate, and the maintenance budget must be published in an accessible manner. Independent audits and civil society monitoring can strengthen the accountability capacity of the transition administration.
A local content policy, addressed alongside infrastructure funding, would be a sound strategy. When the share of Malian businesses in construction materials, logistics, maintenance, engineering, and energy equipment increases, mining revenue will create a second economic circulation. Vocational training programs can enable youth participation in technical jobs. However, when public investments rely on imported companies, labor, and materials, financial resources will leave the country again, and the development effect will diminish.
From the perspective of the Alliance of Sahel States, Mali’s approach could serve as an example of a pursuit of regional economic sovereignty. Cross-border roads, energy links, and trade corridors could translate into joint investments that reduce the cost of sea access for Burkina Faso and Niger. However, the robustness of regional ambitions depends on the quality of national fund management. A model in Mali that produces results, is accountable, and delivers consistent services could lend economic substance to the alliance’s political discourse.
When investments in electricity, water, and transportation are directed to the right regions, gold revenues can become a tangible foundation for human security, going beyond economic growth. The relationship between the state and its citizens is strengthened when the production from a remote mine reaches the village’s water tap, the health center’s electricity, and the road to the market. Such a bond can increase public belonging and economic resilience in regions where security problems are prevalent.
In conclusion, Mali’s initiative is a concrete test of whether resource nationalism can generate development. Success will be measured not so much by the total amount of the fund announced, but by the quality of completed projects, their regional distribution, and their operation over the years. The challenge facing Mali is not only collecting mining revenues but also transforming them into transparent, balanced, and sustainable public investments. If gold revenues are transformed into reliable services, resource sovereignty will gain social legitimacy; otherwise, high figures will remain a new promise that does not touch the lives of citizens.
[i] Tiemoko Diallo, “Mali says mining-backed fund could unlock up to $800 million for infrastructure projects”, Reuters, https://www.reuters.com/world/africa/mali-says-mining-backed-fund-could-unlock-up-800-million-infrastructure-projects-2026-08-03/, (Date of Access: 03.08.2026).
[ii] République du Mali, “Loi n°2023-040 du 29 août 2023 portant Code minier en République du Mali”, Journal Officiel de la République du Mali, No. 22, 1 September 2023, md. 94-100, ss. 875-877, https://sgg-mali.ml/JO/2023/mali-jo-2023-22.pdf, (Date of Access: 03.08.2026).
[iii] “Mali”, Extractive Industries Transparency Initiative, https://eiti.org/countries/mali, (Date of Access: 03.08.2026).
[iv] “In Bamako, access to clean water improves people’s lives”, World Bank, https://www.worldbank.org/en/news/feature/2025/05/22/in-bamako-access-to-clean-water-improves-people-lives (Date of Access: 03.08.2026).
