Mali's $94 Million Debt Threatens Regional Hydroelectric Dam Operations

Reese Morgan

Reese Morgan

May 08, 2025 · 3 min read
Mali's $94 Million Debt Threatens Regional Hydroelectric Dam Operations

Mali's military government is under pressure to settle its massive debt of over $94 million to the agency managing a key hydroelectric dam that 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.

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.

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. In rural areas, that figure drops to just 25%, according to Abdoulaye Makan Sissoko of Mali's rural electrification agency.

The debt has been accumulating over the past year, with a source at the state utility telling Reuters that most of the arrears were accumulated during this period. The utility has not responded to requests for comment. It remains unclear whether Mali's debt is solely tied to the Manantali Dam or includes other obligations.

The situation is particularly concerning given the importance of the dam to the region's power supply. The Manantali project is considered a regional cooperation success story, requiring hundreds of billions of CFA francs to build. SOGEM has described the project as a key example of regional cooperation, highlighting the need for Mali to settle its debt to ensure the dam's continued operation.

The implications of Mali's debt are far-reaching, with the potential to worsen the country's electricity crisis and erode public support for the military government. The government has already faced criticism for its handling of the economy, and the debt crisis could further exacerbate the situation.

In the broader context, the situation highlights the challenges facing West Africa's energy sector. The region is grappling with a severe energy deficit, with many countries struggling to provide reliable power to their citizens. The Manantali Dam is a critical component of the region's energy infrastructure, and its continued operation is essential to ensuring a stable power supply.

As the situation unfolds, it remains to be seen how Mali's military government will respond to the pressure to settle its debt. One thing is clear, however: the fate of the Manantali Dam and the region's power supply hangs in the balance.

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