Mali, a West African country under military rule since 2020, has introduced new taxes on mobile phone use to fund its fight against an ongoing Islamic insurgency. The country's Minister of Economy and Finance, Alousseni Sanou, announced that a 10% tax will be applied to customer mobile recharge for calls, while mobile money withdrawals will be subject to a 1% levy.

The move is expected to generate 140 billion CFA francs ($220 million) to support security and energy infrastructure in the country. This revenue will be crucial in helping the government combat the rising militant attacks, which have continued to plague the country despite its severing of ties with Western allies such as the U.S. and France and strengthening of relations with Russia.

According to Prime Minister General Abdoulaye Maïga, the government is committed to ensuring the country's security and sovereignty during this transition period. Since 2020, Mali has lost over 400 billion CFA francs in budget support from international partners, making it essential to find alternative revenue streams.

In addition to the mobile phone taxes, the government is also increasing the tax on wireless operators' revenue from 8% to 10% and reviewing charges on alcohol sales. The country's leading telecom providers, including Orange SA, Sotelma Malitel, and Telecel Mali, will be affected by these changes.

This move to extract more revenue from the telecom sector follows similar pressure on foreign mining firms, which have been asked to pay millions in back taxes and dividends after a state audit uncovered a revenue shortfall of up to 600 billion CFA francs. Mali, Africa's second-largest gold producer, revised its mining code in 2023 to maximize benefits from its natural resources.

The introduction of these taxes highlights the challenges faced by Mali in its fight against terrorism. Despite being under military rule, the country continues to struggle with militant attacks, and the need for additional revenue to support security and energy infrastructure is pressing. The move is also seen as a sign of the government's efforts to diversify its revenue streams and reduce its dependence on international aid.

The impact of these taxes on the country's mobile phone users and telecom providers remains to be seen. However, with the government expecting to raise $220 million from these measures, it is clear that the stakes are high in Mali's fight against terrorism.