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TimesLIVE
08-05-2025
- Business
- TimesLIVE
Mali pressed to pay 'enormous' debt for regional dam, document says
Mali owes more than $94m (R1.7bn) to the entity managing a dam which also provides power to Senegal and Mauritania, and the debt has become "a question of life and death" for its ability to continue operating, according to a letter seen by Reuters. The funding gap raises the spectre of more electricity supply problems in Mali, where outages in recent years have dented public support for the military government that took power following coups in 2020 and 2021. The Manantali Dam and power plant came online in 2002 and has an installed capacity of 200 megawatts. More than half of what it produces goes to Mali while Senegal gets 33% and Mauritania gets 15%. Mali currently owes "an enormous amount of more than 54-billion CFA francs [R1.69bn]" to SOGEM, the entity that manages Manantali and several other projects, according to an April 25 letter from SOGEM to the director-general of Energie du Mali, Mali's electric utility. "It is now a question of life or death for our installations and for SOGEM," reads the letter signed by SOGEM's director-general, Mohamed Mahmoud Sid'Elemine.
Business Insider
08-05-2025
- Business
- Business Insider
Junta-led Mali pressured to settle massive debt for regional dam
Mali owes over $94 million to the agency managing a key hydroelectric dam that also supplies power to Senegal and Mauritania. The funding shortfall threatens the continued operation of the dam, raising fears of worsening power outages in Mali. As of 2021, only 53% of Malians had access to electricity, according to the World Bank. Over half of the dam's output is allocated to Mali, with Senegal receiving 33% and Mauritania 15%. The funding shortfall threatens the continued operation of the dam, raising fears of worsening power outages in Mali. Mali owes over $94 million to the agency managing a key hydroelectric dam that also supplies power to Senegal and Mauritania. The debt, described as "a question of life and death" for the dam's continued operation, threatens to worsen Mali's ongoing electricity crisis, an issue that has already eroded public support for the country's military government following the 2020 and 2021 coups, according to Reuters. As of 2021, only 53% of Malians had access to electricity, according to the World Bank. In rural areas, that figure drops to just 25%, according to Abdoulaye Makan Sissoko of Mali's rural electrification agency. A shared lifeline The Manantali Dam and power station, operational since 2002, has a capacity of 200 megawatts. Over half of its output is allocated to Mali, with Senegal receiving 33% and Mauritania 15%. However, Mali now owes over 54 billion CFA francs ($94.12 million) to SOGEM, the regional body responsible for managing Manantali and other related infrastructure, according to an April 25 letter from SOGEM to the head of Mali's state utility, Energie du Mali. The funding shortfall threatens the continued operation of the dam, raising fears of worsening power outages in Mali. It remains unclear whether Mali's debt is solely tied to the Manantali Dam or includes other obligations. However, a source at the state utility told Reuters that most of the arrears were accumulated over the past year. The utility has not responded to requests for comment.
Reuters
08-05-2025
- Business
- Reuters
Mali pressed to pay 'enormous' debt for regional dam, document says
BAMAKO, May 8 (Reuters) - Mali owes more than $94 million to the entity managing a dam which also provides power to Senegal and Mauritania, and the debt has become "a question of life and death" for its ability to continue operating, according to a letter seen by Reuters. The funding gap raises the spectre of more electricity supply problems in Mali, where outages in recent years have dented public support for the military government that took power following coups in 2020 and 2021. The Manantali dam and power plant came online in 2002 and has an installed capacity of 200 megawatts. More than half of what it produces goes to Mali while Senegal gets 33% and Mauritania gets 15%. Mali currently owes "an enormous amount of more than 54 billion CFA" francs ($94.12 million) to SOGEM, the entity that manages Manantali and several other projects, according to an April 25 letter from SOGEM to the director-general of Energie du Mali, Mali's electric utility. "It is now a question of life or death for our installations and for SOGEM," reads the letter signed by SOGEM's director-general, Mohamed Mahmoud Sid'Elemine. It is unclear if the debt stems from Manantali or other costs. However, a source at the utility told Reuters most of the debt was racked up in the last year. The utility did not immediately respond to a request for comment. The letter touts the Manantali project as a success story for regional cooperation that cost hundreds of billions of CFA francs to implement. Mali, Burkina Faso and Niger are members of the Alliance of Sahel States and announced last year they were leaving the West African economic and political bloc known as ECOWAS. ($1 = 573.7500 CFA francs)
