The Western African nation of Mali has been under heavy sanctions since a military coup overthrew the government, the second in two years. The current military junta has demanded the withdrawal of many European security forces based in the country. How stable is the situation in the nation and the Sahel region?



Stability in Mali seems to be under question as the West African nation – the stage of a recent military coup – sees itself the victim of wide-reaching sanctions amidst the new military junta. The economic blockades, driven by both European countries and the Economic Community of West African States (ECOWAS), have led to widespread protests and a newfound sense of nationalism in the populace. Critics of the sanctions claim that they are having more of an impact on ordinary citizens.



“These sanctions were imposed when it became clear that the deadline would not be met,” says Ornella Moderan, Programme Head of the Sahel Programme, Institute of Security Studies (ISS) Regional Office for West Africa, to FORBES AFRICA. “It’s to push the Malian transitional authority to propose a way forward that ECOWAS would consider a workable alternative.”



In May last year, the Malian military, led by Vice President and 2020 junta head Assimi Goïta, arrested then President Bah Ndaw. The coup was widely condemned by the international community, which led to strict sanctions imposed in December as the junta shelved plans to hold general elections this month, instead indicating that these might be postponed for another five years.



However, with over a third of the population already dependent on humanitarian aid, and food insecurity at its worst over the last decade, NGOs and relief organizations caution that those being hurt most by the current sanctions are the country’s most vulnerable.



“It’s critical that these new restrictions do not further hamper people’s ability to access humanitarian assistance and basic social services in a country where 70 per cent of the food is imported and where 1.2 million Malians are facing a food crisis,” said the NGOs in a joint statement, which includes prominent organizations such as Oxfam and the International Rescue Committee amongst others.



Thousands of protestors answered a televised call from Goïta, demonstrating in the streets of the capital of Bamako over the last two weeks, against what Goïta has termed “illegal, illegitimate and inhumane” sanctions against the nation.



“These days, except for the vegetables, nothing is affordable,” said Bamako resident Fané Tenin Berthé to France’s TV5 last week. “Onions are expensive, oil, and I’m not even mentioning meat. Prices have really increased.” It does seem that some of the increases are more as a result of rising transportation costs and speculative interest, as many essentials such as food items, petroleum and other goods are exempt from the sanctions. “There isn’t a direct effect as of yet – Mali isn’t down on its knees financially,” says Moderan. “Some prices have risen, but by and large people are continuing with their daily activities as normal.” However, she cautions that this may not remain the case should the sanctions continue, particularly if they reach as far as the festive time of Ramadan in April.



The circumstances are further complicated by a foreign force drawdown over the last few months, which has seen major international players such as France and Denmark withdrawing much of their soldiers. The international forces were originally present as a result of a 2013 request from then



President Dioncounda Traore to combat terrorism within the Sahel region. However, the junta has been less supportive of foreign security intervention within the country.



“We invite them [the Danes] to be careful about some partners who sadly have problems getting rid of their colonial reflexes,” said Interim Prime Minister Choguel Kokalla Maiga in a statement to diplomats last week.



However, the combination of the reduction of international forces, economic sanctions and general tensions as a result of the coup paint a bleak picture for ordinary Malians in the months to come.



“The sanctions have taken precedence over the security situation in international discourse,” continues Moderan. “It would be a mistake to assume that the security situation is stable. It’s just that we are no longer discussing it.”

MALI-COUP-ARMY-CONFLICT-ECONOMY-SANCTIONS

Mali Sanctions Bite Deeply As Ordinary Citizens Affected Most

Burkina Faso, as the third biggest gold producer in West Africa, behind Ghana and Mali, does not get the recognition it deserves. In addition to gold, the nation is blessed with manganese and other rare earth metals, making it a premier destination for mining. With this in mind, it is not surprising that the government is in talks with mining companies to develop a world-class manganese mine.
Gold is Burkina Faso’s most valuable export, accounting for almost 80% of its income. But, the reliance on gold is waning, with focus turning to the exploration of other mineral deposits. A diverse base of minerals, especially with the discovery of manganese, will help ensure that Burkina Faso develops multiple revenue streams.
Considering that there was no industrial mining in Burkina Faso up to 2007, the sector’s rise shows what can be achieved in a relatively short space of time with government support and relative political stability. Companies that have an interest in setting up operations in the country include Canada’s Endeavour Mining and UK-listed mining company, Toro Gold, both of which are active players in the West African mining space. Another Canadian miner, Roxgold, is in the process of completing an IPO to develop a 95,000oz concession. Key to Burkina Faso’s success is the high grade of its gold.
Despite a rosy outlook, there are challenges. Power shortage is hampering the progress of projects and the Burkinabe government has started to construct a 33MW solar power plant to combat the problem. This approach will hopefully encourage investors.
In addition to Burkina Faso, Mali has historically had a vibrant mining sector with the country hosting many productive mines. Gold mined in the West African country last year produced 50 tons of gold, with production expected to surpass 60 tons by the end of next year. With both Burkina Faso and Mali having a degree of political stability, coupled with low taxes and other incentives, the region will no doubt attract investors who might have been sceptical about the region just a year ago.
As Nigeria aims to kick-start its mining sector, there have been significant developments. Canadian company, Thor Explorations, has taken steps to develop a 535,000oz resource and could become a leading player in Nigerian mining. As exploration and new discoveries in the region ramp up, unlocking the potential of the projects will depend on the ability to raise finance, but it has to be the right type of finance. Traditional financing often ostracizes smaller players and curtails smaller projects. Crowdfunding is a method that is gaining traction, especially in advanced mining countries such as Canada. Whether this method can be replicated in Africa remains to be seen but innovation – be it technological or financial – will be advantageous for local and international companies.
In the last couple of years, mining has started to attract the attention of boutique private equity firms. In some cases, financing for mining projects can be misplaced. Private equity traditionally takes a long-term view, with the objective of matching long-term capital with long-term projects. This year has seen an increase in global private equity mining deals, with many mining companies considering these deals as the best way to advance their projects and also provide strategic and managerial expertise.
The cyclical nature of mining means timing is crucial for investors. The price of gold has improved significantly but, with other base metals still performing at low levels, appetite is tempered. Due diligence on any project will determine the way forward but despite advancements in legislation, the perceived lack of transparency and bureaucracy associated with license acquisition deters investor confidence.

Crowd fund the mines

I have always been intrigued by sub-Saharan trade. In the interest of understanding caravan journeys better, I made trips to Mali and Morocco to observe their most famous routes. Goods such as gold, ivory – and regretfully, millions of  slaves – were moved from sub-Saharan Africa to Timbuktu, then through the desert and over the Atlas mountains to Marrakech and onto the port of Essaouira, which served as Morocco’s principal port, offering the cargo of the caravans to the world.
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My journey from Casablanca airport to Essaouira was a 400-kilometer ride that passed along the Atlantic sea coast and then inland along plateaus dotted with argan trees endemic to the region and known the world over for its use in producing aromatic oil. It was late in the night when I arrived in Essaouira, an Arabic/Berber medina contained within a European fortress with winding alleys and streets. Finding my seafront hotel was an adventure in itself, in a town with many dead-end alleyways.
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It was a moment of great excitement when I opened my windows, illuminated by the Maghreb sunlight, and realized my room was right on top of the ramparts of the fort overlooking a broad seafront. Later, while walking along the crenellated ramparts of the cannon-lined fort, I could see the city wake up on one side while the finest fisheries off the waters of Morocco were coming alive with boats and attendant gulls on the other. Upon reaching the port, I caught a glimpse of the lives of fishermen who were unloading their large catches of sardines and conger eels; a haul big enough to sustain its economy.
The historic charm of the UNESCO World Heritage listed city is evident in every twist and turn in the maze of pedestrian-only streets that make up the medina. Broken facades and decorative doors open to reveal ancient Kasbahs lined with courtyards and fountains. Essaouira has been in existence in recorded history since the days of imperial Rome, where the purple stripes of the senatorial toga (garment of ancient Rome) came from a dye factory, made from sea snails found here. Ruled by Romans and then by Berber kings, it was swept up under the influence of Islam in the eighth century and ruled by Arab kings until the Portuguese captured it in the 16th century. This was followed by French occupation and it finally came under Moroccan rulers in 1777 when it was declared an independent nation.
This rich history of occupation has provided Essaouira with a French-designed fortress, Genoese-designed port citadels, a classic Arabic medina complete with a royal Kasbah, Jewish mella or quarter and a European enclave.
Walking through its winding streets I could see Arabic, French and Spanish influences in the architecture.
Essaouira’s real beginning as an import-export center came in the 1770s when the sultan of Morocco appointed families from Casablanca, Marrakech and other northern cities to settle here and become official royal traders to conduct trade with Europe and the Americas. It has been noted that seven of the town’s leading families in the 19th century were Muslim, while 25 were Jews, who once comprised 40% of the population.
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The homes of former Jewish traders and the synagogue reveal themselves through Hebrew carvings on the door lintels.
The souk area was quite interesting with many shops selling spices, wood carvings and cabinetry. Unlike the bustle found in the souks of Marrakesh, the pace here was very relaxed under the warm sunlight and a steady breeze from the ocean. The fort area has more upscale shops while the souks had a classic Arabic atmosphere. The delicious seafood available in restaurants around the harbor was absolutely amazing and at very reasonable prices. I found men here wearing the classic djellabas and women walking around in colorful qmis (long jacket) covering their baggy pants.
Essaouira is best reached from Marrakesh by road and can be covered as a day trip. Emirates Airline can fly one to Morocco from any big African city via Dubai.
With its unspoilt beaches, luxurious hotels, wonderful cafes and seafood restaurants, Essaouira is fast becoming a must-visit destination. Morocco has a lot to offer. In this context, Essaouira is often ignored. But for the intrepid traveler, it offers a special place where the caravans of the Sahara finally emptied its wares for the world to consume.

Tag: Mali

FORBES AFRICA SOCIAL MEDIA

Mali Sanctions Bite Deeply As Ordinary Citizens Affected Most

Crowd fund the mines

Where Africa’s Caravans Were Headed