The informal sector in Mali: A source of resilience in a context of fragility

Mali has been experiencing a period of instability and conflict since the 2012 military coup. Despite these challenges, Mali’s informal sector keeps people going. From roadside vendors to tailors, mechanics, and food sellers, these entrepreneurs form the backbone of livelihood for most Malians, holding communities together. The informal sector presents a unique source of resilience.

An invisible lever for economic and social inclusion

The informal sector, often perceived as marginal, accounts for approximately 90 percent of the economy, employing 91.5 percent of the workforce and making up between 40 to 60 percent of Gross Domestic Product, and is a socio-economic safety net for millions of Malians, including women, youth, and displaced people. In the absence of formal access to employment, credit or social protection, informal actors innovate, help each other and reinvent livelihood models. The sector thus has become a space of solidarity, local stability and, often, silent peace.

In areas affected by conflict or forced displacement, the informal sector is even more vital: It provides a socio-economic safety net that allows basic services to be maintained, creating immediate income, and preserving social cohesion. It absorbs a large part of the displaced workforce and offers business opportunities even in the absence of formal infrastructure or access to bank credit. The informal sector predominates in urban and peri-urban areas, but also in fragile regions, such as Mopti, Ségou or Gao.

World Bank surveys reveal that nearly 4 in 10 informal workers have no formal education, and half of them are engaged in trade or livestock farming.  Their workdays are long and unpredictable, with 78% reporting they work more than eight hours daily, driven by economic pressures and unstable income. The informal sector thrives in urban areas with common places including streets, markets, and home-based workshops.

We have spent time listening to Malians’ stories, and one thing is clear: the informal sector is not just about survival. It is about creativity, strength and social reconstruction.

One of the stories that stuck with us is Mariam’s, a 48-year-old entrepreneur living in Missabougou, a neighborhood in Bamako.

Mariam, a 48-year-old entrepreneur in Missabougou (Bamako):

"When the crisis broke out in the north, my sister came to live with me in Bamako with her 3 children and I had to face more expenses.  My vegetable display at the market alone did not allow us to ensure our daily subsistence, so I decided to relaunch my sewing business. With two incomes of about FCFA 11500 ($10) per day, I manage to feed my family.  I never had access to a bank loan, but thanks to tontines, I was able to buy a second machine. Today, I am training two displaced girls. My studio has become a refuge, a place of mutual support. It's not big, but here, we work, we share, we hold on."

Strategy to grow the informal sector in FCV contexts

In the current context in Mali where about 235,000 young people enter the job market annually, access to decent economic activity reduces the risks of radicalization, forced migration or prolonged exclusion.  The Government understands these challenges as shown through the adoption of the National Entrepreneurship Strategy and its 2025–2029 action plan, aiming to boost job creation, economic growth, and improve living standards, especially for youth and women. The implementation of the strategy could support the formalization of the informal sector, by setting up fiscal and administrative incentives while managing stakeholder constraints for the actors.

Capacity building for informal entrepreneurs, including through technical and practical training, accessible digital tools, and flexible financing, is also crucial to improving their productivity and resilience. In addition, the expansion of access to financial services, in particular microcredit and mobile savings, must be supported, particularly in rural or fragile areas that are often excluded from formal channels. Finally, it is important to document and promote local resilience initiatives to better integrate them into public policies and recovery programs, capitalizing on the endogenous solutions already implemented by communities.

Towards a sustainable economic inclusion strategy

Recognizing the value of the informal sector  means recognizing the adaptability of Malian communities.   It embodies local resilience, spontaneous innovation and the ability of communities to withstand shocks.  It is therefore crucial to fully integrate this dynamic into Mali's national development, stabilization and reconstruction strategies, because behind every informal activity, there is a story of courage, survival, and silent reconstruction.