Private Forest Management
Private Forest Management
Business Model Description
Invest in private forest management in Mali's forests and protected areas to promote restoration and ecotourism. Operators obtain forest concession agreements with municipalities, circles, or regions, reforest degraded land, and partner with local communities to develop agroforestry systems through agriculture, sylviculture, poultry farming, beekeeping, and agro processing. This reduces illegal logging incentives. Return is generated through the distribution of Forest Eco Certified (FSC-certified) products locally, in West Africa, and Asia. Additional revenue could from the sale of carbon credits. Companies under this business model may benefit from the Subnational Climate Fund (SCF).
Expected Impact
Reduce deforestation and illegal logging, improve carbon sequestration, protect forest biodiversity, and improve the resilience of Mali's agricultural system and farmers.
How is this information gathered?
Investment opportunities with potential to contribute to sustainable development are based on country-level SDG Investor Maps.
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Country & Regions
- Mali: Sikasso
- Mali: Kayes
- Mali: Koulikoro
- Mali: Ségou
Sector Classification
Renewable Resources and Alternative Energy
Development need
Mali faces an electricity deficit, relying on Côte d'Ivoire for a quarter of its supply. Over 75% of its power plants run on diesel and heavy fuel, causing 31% of the energy sector’s greenhouse gas (GHG) emissions. Meanwhile, only 1.9% of the population has access to clean cooking, increasing pressure on forests (1, 2).
Policy priority
By 2030, the Plan d'Action National d'Énergies Renouvelables 2015-2020/2030 aims to raise renewable energy's share in the electricity mix to 8.63% (excluding medium- and large-scale hydro) and 36.88% (including hydro). It also seeks to achieve universal access to clean cooking technologies (8).
Gender inequalities and marginalization issues
The Northern regions of Menaka (0.7%), Tombouctou (41.9%), Gao (51.4%), Taoudeni (57.5%), and Kidal (58.1%) lagged behind the national average (79.9%) in terms of access to electricity in 2023 (3).
Investment opportunities introduction
Mali has a high renewable energy potential, 6 kWh/m² of solar irradiation, 1150 MW of hydropower exploited at only 22%, 3 to 7 m/s of wind exposition, and a reserve of more than 670 billion cubic meters of renewable geological hydrogen, composed of 98% hydrogen and 2% methane and helium. These resources present a strong foundation for expanding the share of renewables in the country's final energy consumption and accelerating the transition to a low-carbon energy system (1, 6).
Key bottlenecks introduction
Limited personnel for forest protection, weak electricity subsidy policies, and an inefficient transmission network hinder Mali's transition to renewable energy (5, 7, 9).
Forestry and Paper
Development need
Mali lost 17% of its forest cover, approximately 421,000 ha, from 2001 to 2023. This corresponds to 2.12 Mteq of CO2. Between January 2024 and January 2025, 768 deforestation alerts were reported, with 33% being high-confidence. This degradation causes a land productivity loss of 6.5 tons/ha/year, equating to an economic loss of USD 145/ha/year (4, 10).
Policy priority
Through Contribution Déterminée Nationale, Mali commits to reduce land use and forestry emissions by 39% by 2030. This commitment includes the reforestation of 10,000 ha per year, and the preservation of classified forests and protected areas (1).
Gender inequalities and marginalization issues
Rural populations in Mali, especially women, rely on forest resources as a coping mechanism during poor agricultural seasons, converting them into charcoal or firewood for income. The Sikasso region saw the highest forest cover loss from 2017 to 2023, with 15,800 ha lost—59 times the national average of 266 ha (10, 24).
Investment opportunities introduction
Malian forests sequester 322,025 kT of CO2 annually, offsetting agricultural emissions. From 2000 to 2020, 7.23 million ha remained stable, while 125,000 ha were degraded. Reforestation, including from private efforts, added 204,000 ha, highlighting investment opportunities in forest restoration and sustainable management (4, 10).
Key bottlenecks introduction
Private forest management in Mali demands significant investment, with some plans requiring up to USD 4.8 million. However, conflict-related insecurity in forest-bordering areas discourages external financiers, including investment funds and conservation finance providers (23).
Forestry Management
Pipeline Opportunity
Private Forest Management
Invest in private forest management in Mali's forests and protected areas to promote restoration and ecotourism. Operators obtain forest concession agreements with municipalities, circles, or regions, reforest degraded land, and partner with local communities to develop agroforestry systems through agriculture, sylviculture, poultry farming, beekeeping, and agro processing. This reduces illegal logging incentives. Return is generated through the distribution of Forest Eco Certified (FSC-certified) products locally, in West Africa, and Asia. Additional revenue could from the sale of carbon credits. Companies under this business model may benefit from the Subnational Climate Fund (SCF).
Business Case
Market Size and Environment
> USD 1 billion
13.3 million ha of forest cover, of which a minimum of 270,000 ha are in concession.
Mali had 13.3 million ha of forests in 2020, of which at least 270,000 ha were conceded to private operators in Southern and Central regions (10, 24).
After accounting for the emissions from renewable energy, agriculture, and waste, Malian forests have 156,354 kTeq of CO2 in excess for sequestration. With a fairtrade minimum price of USD 13.54 per teq of CO2 for forest management according to Gold Standard, this gives a value of at least USD 2.1 billion worth of carbon credit (2, 12).
Indicative Return
10% - 15%
Forestry conservation impact investments are expected to generate an IRR between 10% and 14.9% in Sub-Saharan Africa (14).
This result is confirmed by a European Tropical Forest Research Network report on the attractiveness of tropical forest conservation for private investments in emerging markets. The report indicates an IRR of 12% (16).
The economic analysis of a benchmark forest management project in West Africa indicates an IRR between 29% and 48% over a period of 7 years, for the production of non-timber forest products (NTFP). This return profile is specific to NTFPs and varies for other forest products (17).
Investment Timeframe
Short Term (0–5 years)
Consultations with private forest management operators in Mali, in January 2025, indicate positive returns from investment after 2 to 3 years (13).
Ticket Size
USD 1 million - USD 10 million
Market Risks & Scale Obstacles
Market - Highly Regulated
Capital - CapEx Intensive
Impact Case
Sustainable Development Need
Mali has lost 427,000 ha of forest cover from 2001 to 2023, which is equivalent to a 17% decrease since 2000 or 2.12 Mteq of CO2. This degradation contributes to a land production loss of 6.5 tons/ha/year, or an equivalent economic loss of USD 145/ha/year (1, 3).
Timber trafficking generates over USD 13 million in economic loss in Mali. Between 2019 and 2021 for instance, illegal logging in the municipality of Kenieba alone, in the western region of Kayes, generated around 13.8 million dollars (15).
Biomass generates 75% of the energy consumed in Mali. However, the total amount of wood harvested to meet the energy demand (12 million tons/year) is approximately two times greater than the capacity of forest formations to renew their stock (7 million tons/year) (1, 27).
Gender & Marginalisation
Sikasso experienced the highest forest cover loss between 2017 and 2023, with 15,800 ha lost. This is 59 times higher than the national average, which stood at 266 ha over the same period (3).
Rural populations in Mali, including women, use forest resources as a mitigation strategy when the agricultural season has been less than favorable. They transform them into charcoal or firewood, then sell them for a direct source of income (24).
Some rural populations also clear forest land to extend their cultivated area or to mitigate the effects of loss of soil quality and fertility (24).
Expected Development Outcome
In the face of climate change, private forest management initiatives enhance rain regulation, soil stabilization, and flood resilience, strengthening the resilience and productivity of the agricultural production system (24).
The surveillance activities performed through private forest management complement the initiatives of public water and forest agents, decreasing the extent of timber trafficking and illegal bush cutting. This in turn preserves forest biodiversity and soil quality.
Gender & Marginalisation
Private forest management initiatives in forest-rich regions like Sikasso enhance forest regeneration and support improved local agricultural conditions.
The integration of rural communities, farmers, and women into income-generating activities provides sustainable and reliable income sources, improving living conditions, reducing vulnerability to income shocks, and lowering incentives for illegal bush cutting.
The initiatives developed through private forest management promote sustainable agricultural practices among rural smallholder farmers.
Primary SDGs addressed
15.1.1 Forest area as a proportion of total land area
15.3.1 Proportion of land that is degraded over total land area
15.2.1 Progress towards sustainable forest management
11% in 2022, or 13.3 million ha (25).
9.27% in 2019, or 11.58 million ha. This includes 17% of forest cover lost between 2001 and 2023 (3, 26).
22.21% of forest were in legally established protected area in 2020. At least 380,000 ha of forest cover were under concession for private management as of March 2025 (13, 25).
12.1.1 Number of countries developing, adopting or implementing policy instruments aimed at supporting the shift to sustainable consumption and production
Mali has integrated reducing emissions from deforestation and forest degradation (REDD+) considerations in Contribution Déterminée Nationale 2021. The initiatives aims to mitigate the effects of climate change by 2030 (1).
Through REDD+ initiatives, Mali expects to gain 1.54 million of ha by 2030. This corresponds to a 2.81% improvement in vegetation cover and a total sequestration gain of 358.001 KT of CO2 (1).
1.2.1 Proportion of population living below the national poverty line, by sex and age
43.9% in 2023; 14.2% in Bamako, 23.4% in other urban centers, and 51.7% in rural areas (3).
Secondary SDGs addressed
Directly impacted stakeholders
People
Gender inequality and/or marginalization
Planet
Corporates
Public sector
Indirectly impacted stakeholders
People
Gender inequality and/or marginalization
Planet
Corporates
Outcome Risks
If private operators fail to adequately follow specified forest management plans, tree-planting initiatives could reduce biodiversity rather than restore ecosystems.
If not conducted properly, surveillance activities could disrupt local fauna.
If income-generating activities prioritize short-term profit over sustainability, they may harm forest preservation and compromise long-term regeneration outcomes.
Impact Risks
Mali had only about 700 water and forestry agents in 2019, to protect and monitor 13.3 million ha of forests. This may limit the quality of the surveillance performed under this business model (24).
Droughts, desertification, and forest fires could undermine restoration efforts, limiting the expected impact of this business model.
If the income generating initiatives are not designed adequately, some of the local community members may be excluded from this opportunity.
Impact Classification
What
Private forest management reduces deforestation and illegal logging, protects forest biodiversity, and improves carbon sequestration and the resilience of Mali's agricultural system and farmers.
Who
Forest dwellers, smallholder farmers, distributors, the government, and transportation, videosurveillance, and drone companies are impacted by forest management.
Risk
Limited forest protection personnel capacity, climate hazards, and inadequate integration of local forest dwellers may limited the expected impacts of private forest management.
Contribution
Private forest management complements the protection and monitoring initiatives of public water and forest agents, whose performance ratio is only 1 agent for 19,000 ha of forest (24).
How Much
Private forest management could contribute to produce up to 204,000 ha of new forest cover, or 48.54% of the degraded forest cover, over a 10-year period (3).
Impact Thesis
Reduce deforestation and illegal logging, improve carbon sequestration, protect forest biodiversity, and improve the resilience of Mali's agricultural system and farmers.
Enabling Environment
Policy Environment
Contribution Déterminée au Niveau National Révisée, 2021: targets 1 million ha of forests, including classified forests and protected areas, for forest management by 2030 (1).
Politique de développement agricole, 2013: outlines Mali's government priorities, including 1) the increase in forest and grass cover and 2) the restoration and preservation of biodiversity (22).
Politique Nationale Forestière, 2017: targets 12,500 ha of secure reforestation by 2030, 15,000 ha of reforestation with species of economic value, management of classified forests to improve forest cover rates and forest management to enhance the carbon content of forest formations (1).
Plan d'Action de la Réfondation de l'État, 2022-2026: promotes the creation of diversification activities to reduce excessive logging (34).
Financial Environment
Financial incentives: Fonds Climat Mali is a national Fund that supports projects that mitigate the impact of climate change, improve biodiversity, reduce poverty, and achieve a green climate economy in Mali. In 2023, the Fund financed up to USD 3 million in forest restoration projects (20).
Other incentives: Subnational Climate Fund provides technical assistance (TA) for forest conservation projects, including sylviculture and agroforestry. Current TAs in private forest management are in South America, but the Fund is already active in Mali, for agro processing projects (18, 19).
Other incentives: In other Sub-Saharan African countries such as Malawi, Tanzania, and Republic of Congo, Terra Global Capital provides transaction and risk advisory and financing through the Terra Bella NBS Carbon Pool Fund, to private forest management operators (31).
Regulatory Environment
Decree No. 2018-0079/P-RM on transfer of forest and wildlife resource management powers to local authorities, 2018: allows municipalities, circles, and regions to develop and implement forest management plans and establish forest concession contracts with private operators (29).
Title IV of Decree No. 2018-0662/P-RM on regulations governing the exploitation of forest products in the natural forest estate, 2018: allows private operators to obtain concession agreements to manage and exploit forest products for a period of five to ten years, and a maximum of 200,000 ha (28).
Decree No. 2018-0662/P-RM on regulations governing the exploitation of forest products in the natural forest estate: allows private operators to harvest forest products for commercial purposes, and establishes the conditions for processing and commercialization, under Title II and Title III (28).
Article 5 of Decree No. 2018-0662/P-RM on regulations governing the exploitation of forest products in the natural forest estate: requires forest management plans to integrate local villages into forest monitoring and protection initiatives (28).
Marketplace Participants
Private Sector
Agriculture Industrie et Développement (AID SA), Société de gestion des concessions forestière et faunique de Tam Voyage.
Government
Ministère de l'Environnement, Direction Nationale des Eaux et Forêts, Agence de l'Environnement et du Développement Durable, Fonds Climat Mali, Ministère du Développement Rural, Ministère des Collectivités Territoriales, Ministère l’Aménagement du Territoire et de la Population.
Multilaterals
Coopération Suedoise, Banque Ouest Africaine de Développement, World Bank, Centre de Recherche Forestière Internationale et le Centre International de recherche en Agroforesterie, Subnational Climate Fund, Terra Global Capital.
Non-Profit
Coopérative Fayaton, Collectivités territoriales.
Public-Private Partnership
Concession agreement between Agriculture Industrie et Développement (AID SA) and Government of Mali in 2008 for forests in Bougouni and Yanfolia. Concession between Société Tam Voyage and Direction Nationale des Eaux et Forêts for the Faya forest, in 2013 (13, 30).
Target Locations
Mali: Sikasso
Mali: Kayes
Mali: Koulikoro
Mali: Ségou
References
- (1) Ministère de l'Environnement, de l'Assainissement et du Développement Durable. 2021. Contribution Déterminée au Niveau National Révisée. https://faolex.fao.org/docs/pdf/mli220117.pdf
- (2) African Development Bank. 2023. Mali Energy Fact Sheet. https://www.afdb.org/en/mission-300-africa-energy-summit/accelerating-africas-energy-transition/mali-energy-fact-sheet
- (3) Institut National de la Statistique du Mali. 2023. Consommation, pauvreté et bien-être des ménages 2023. https://www.instat-mali.org/laravel-filemanager/files/shares/eq/ranuel23_eq.pdf
- (4) African Development Bank. 2019. Development Programme for the Special Agro-Industrial Processing Zone of Koulikoro and Semi-Urban Bamako Regions. https://www.afdb.org/sites/default/files/documents/projects-and-operations/mali_-_development_programme_for_the_special_agroindustrial_processing_zone_of_koulikoro_and_semiurban_bamako_regions_pdzsta-kb_-_appraisal_report.pdf
- (5) United Nations Development Programme. 2023. Mali: Atténuation des risques des investissements dans les énergies renouvelables. https://www.undp.org/energy/publications/mali-attenuation-des-risques-des-investissements-dans-les-energies-renouvelables
- (6) Isabelle Moretti, Asma Diallo, Nicolas Pélissier, Yannick Peysson. 2024. Hydrogène Naturel. https://www.academie-technologies.fr/wp-content/uploads/2024/06/hydrogene_naturel_ST24_05_10042024.pdf
- (7) World Bank. 2023. Mali Electricity System Reinforcement and Access Expansion Project (YELEN SIRA). https://documents1.worldbank.org/curated/en/099092923114511777/pdf/BOSIB-89062c81-3273-4409-adf6-d5bc2b2aae7f.pdf
- (8) République du Mali. 2015. Plan d'Action National d'Energies Renouvelables (PANER) du Mali, 2015-2020/2030. https://www.se4all-africa.org/fileadmin/uploads/se4all/Documents/Country_PANER/Mali_Plan_d_Actions_National_pour_les_Energies_Renouvelables_.pdf
- (9) Studio Tamani. 2019. Déforestation au Mali : comment y faire face ?. https://www.studiotamani.org/59445-deforestation-au-mali-comment-y-faire-face
- (10) Global Forest Watch. 2025. Perte de couverture forestière au Mali. https://www.globalforestwatch.org/map/country/MLI/
- (11) West African Alliance on Carbon Markets and Climate Finance. 2025. Mali. https://westafricanalliance.org/our-countries/mali/
- (12) Gold Standard. 2025. What is a carbon credit worth?. https://www.goldstandard.org/news/what-is-a-carbon-credit-worth
- (13) UNDP SDG Financing in Mali project team consultations with private forest management operators in January 2025.
- (14) Zarina Ismailova. 2016. Financial Investment Management for Forest Sustainability. https://openprairie.sdstate.edu/cgi/viewcontent.cgi?referer=&httpsredir=1&article=2064&context=etd
- (15) APA News. 2024. Mali: Timber trafficking generates over $13m in 3 tears. https://apanews.net/mali-timber-trafficking-generates-over-13m-in-3-tears/
- (16) European Tropical Forest Research Network. 2012. Good Business: Making Private Investments Work for Tropical Forests. https://unfccc.int/files/cooperation_and_support/financial_mechanism/standing_committee/application/pdf/good_business_making_private_investments_work_for_tropical_forests.pdf
- (17) World Bank. 2019. Gazetted Forest Management Project. https://documents1.worldbank.org/curated/en/431761559527300050/pdf/Benin-Gazetted-Forests-Management-Project.pdf
- (18) Sustainable Climate Fund. 2025. SCF projects. https://www.subnational.finance/projects/
- (19) Subnational Climate Fund. N/A. Senegal & Mali: redeveloping an ancient grain. https://www.subnational.finance/projet/yolele-fonio/
- (20) Ministère de l'Environnement, de l'Assainissement et du Développement Durable. 2024. Rapport annuel 2023 du Fonds d'Affectation Spéciale du Mali pour le climat (Fonds Climat Mali). https://mptf.undp.org/sites/default/files/documents/2024-05/2023_narrative_report_mali_climate_fund.pdf
- (21) Ministère de l'Économie et des Finances. 2023. Évaluation de la Vision 2023 et de la Stratégie Natioanle de Développement du Mali à Moyen Terme : Diagnostic stratégique et évaluation du CREDD 2019-2023.
- (22) Ministère du développement rural. 2013. Politique de Développement Agricole. http://magriculture.gouv.ml/images/PDA.pdf
- (23) Ministère de la Refondation de l'État. Cadre stratégique de la refondation de l'État CSRE 2022-2031. https://predire-nimd.com/documents/cadre-strategique-de-la-refondation-de-letat-mali/?wpdmdl=5104&_wpdmkey=67e4608d6cce1
- (24) Studio Tamani. 2019. Déforestation au Mali : comment y faire face ?. https://www.studiotamani.org/59445-deforestation-au-mali-comment-y-faire-face
- (25) FAOSTAT. 2025. Land Use. https://www.fao.org/faostat/en/#data/RL
- (26) United Nations Convention to Combat Desertification. 2019. Proportion of land degraded over total land area (2019) - Mali. https://data.unccd.int/country-overview?country=MLI&layer=TOTAL_POPULATION_EXPOSED_TO_LAND_DEGRADATION_REPORTING
- (27) Ministère des Affaires Étrangères et de la Coopération Internationale. 2018. Programme « Alliance globale contre le changement climatique au Mali Phase 2 (AGCC-Mali 2) » - Résultat 4 : « La couverture forestière dans les communes d’intervention est améliorée ». https://www.objectif2030.org/media/modules_pdf/APPEL_A_PROPOSITION_ENVIRONNEMENT_MALI_UE_compressed.pdf
- (28) Journal Officiel de la République du Mali. 2018. Decret No. 2018-0062/P-RM du 08 août 2018 portant réglementation de l'exploitation des produits forestiers dans le domaine forestier national. https://faolex.fao.org/docs/pdf/Mli180435.pdf
- (29) Journal Officiel de la République du Mali. 2018. Decret No. 2018-0079/P-RM du 21 janvier 2019 fixant le détail des compétences de l'État transférées aux collectivités territoriales en matière de gestion des ressources forestières et fauniques. https://faolex.fao.org/docs/pdf/Mli174374.pdf
- (30) Mali Actu. 2013. Gestion des forêts : Un partenariat public-privé apprécié. https://maliactu.net/gestion-des-forets-un-partenariat-public-prive-apprecie/
- (31) Terra Global Capital. 2025. Projects. https://www.terraglobalcapital.com/#