BACKGROUND

Mali, a landlocked West African nation, has a population of 11.3 million; Despite improved economic growth since 1994 it remains one of the world’s poorest countries, with GNP/head of US$ 240 and 64% of the population living below the poverty line.

Political stability, confirmed in 2002 by the election of President Touré, favours economical development and allows Mali to benefit from international investment.

The construction sector is very dynamic with an important growth in urban population, mainly in Bamako. The liberalization of this sector has given a boos to the property market.


CAROTECH MALI

Carotech Mali is a start-up company, located in Bamako, producing and distributing cement paving stones and by-products. Its original and economical manufacturing process requires no kiln treatment, which represents substantial savings in investments and power consumption – an important factor in Africa.

The manufacturing process has been developed by a Nigerian sponsor who started three years ago a business based on the same technology in Niamey, Niger (Carotech Niger). The Niger experience has permitted to validate the manufacturing process, the competitiveness of the products, and their suitability for the local market.
In the longer term, it may be possible to grow CAROTECH on a sub-regional scale.

INVESTMENT

I&P has intiated the creation of Carotech Mali, by identifying the Malian sponsor (who is also manager of CAMED, another investment of I&P) and by providing equity (27.5% of the capital) and a medium-term loan.
In 2007 I&P purchased additional shares, raising its stake to 37.5 % of the capital.