422 Rebuilding West Africa’s food potential
Figure 3. Macroeconomic “imports” option outcomes in millions of CFA francs- 80000
- 60000
- 40000
- 20000
020000400006000080000Rural^
revenues^Imported Rice
Local rice
Foreign
currencyUrban
revenuesState
revenueSource : AFD-CIRAD-FIDA (2011)Figure 4. Macroeconomic “production” option outcomes in millions of CFA francs.- 6000 0
- 4000 0
- 2000 0
020000400006000080000100000120000Imported rice
Local riceRural
revenuesForeign
currencyUrban
revenuesState
revenueSource : AFD-CIRAD-FIDA (2011)Given its effects on macroeconomic stability, food security and poverty, the development of Malian
rice appears to be fully justified. It will be especially beneficial if it can substitute imported rice. But
the stakes of Malian rice are also sub-regional; West Africa has an overall need of approximately 7
million tonnes of rice, and the 3 million tonnes deficit (40 percent of the demand) is met through
imports. The two other producing countries, Côte d’Ivoire and Guinea, have a production system that
is mainly rainfed and can only increase their production by deforesting which would further disrupt
the frail ecological balance. To stifle competition from overseas in the sub-region, preferential tariffs
could be implemented with the collaboration of Mali’s dual membership in ECOWAS and WAEMU.
To a lesser extent, the fact that imports are concentrated in the hands of a few private operators
increases consumer prices of imported rice, as their main aim is to make profits through high margins.
This oligopoly, who seems to cast off the option of increasing market shares through price reduction,
is motivated by the characteristics of the demand: inelasticity of rice as a basic necessity, people
increasingly preferring rice and a demographic pressure boosting demand and consumer surplus.