Mali, Africa’s largest cotton producer, is set to invest $40 million in clean energy as part of a broader effort to enhance its competitiveness in the European market.
The move aligns with tightening environmental, social and governance (ESG) regulations in the European Union, which require greater transparency and sustainability in global supply chains.
Mamadou Moustapha Diarra, Chief Executive Officer of the state-owned textile development company CMDT, confirmed that the investment will span five years and focus on replacing diesel-powered generators with solar and biomass energy plants.
The initiative aims to provide the 100 megawatts needed to power Mali’s cotton processing operations while reducing operational costs.
“These are noble steps we’re taking for the environment, but they also improve the company’s profits by cutting energy costs,” Diarra stated.
CMDT, which oversees Mali’s cotton sector, operates ginning factories where cotton seeds are separated from lint and is now expanding its facilities to include spinning operations, transforming raw cotton into thread.
This vertical integration strategy seeks to increase Mali’s value addition before export.
Beyond renewable energy, CMDT is addressing child labor concerns and soil degradation, critical factors in maintaining access to European markets.
The EU has intensified ESG compliance requirements, making companies legally accountable for violations in their supply chains.
Given that Mali’s cotton industry relies on over 200,000 smallholder farms, ensuring compliance poses a logistical challenge.
“When we are looking at the production standard, we are already trying to anticipate what future legislation will ask us to comply with,” said Lena Staafgard, Chief Operating Officer of Better Cotton, a Geneva-based organization assisting CMDT with EU compliance.
She noted that cotton could eventually be added to the EU’s list of raw materials subject to anti-deforestation regulations, which have already been delayed but are expected to take effect in the near future.
“The work that’s happening is to ensure that the smallholders of Mali can still sell their cotton to Europe,” Staafgard added.
Cotton remains Mali’s second-largest export after gold, making it particularly vulnerable to shifts in trade policies.
By embracing clean energy and sustainability reforms, CMDT aims to safeguard Mali’s access to one of the world’s most lucrative textile markets while strengthening its global competitiveness.
