How to Collect a Debt in Mali: A Guide for American Exporters

International trade always carries a level of financial risk, especially when dealing with emerging markets such as Mali. When a Malian buyer fails to meet their payment obligations, an American exporter must navigate not only cultural and linguistic barriers but also Mali’s distinct legal and commercial environment. Understanding the framework for debt collection in Mali is therefore crucial to protecting your company’s interests.

1. Understanding the Legal Environment

Mali’s legal system is based on French civil law and operates under the OHADA (Organization for the Harmonization of Business Law in Africa) treaty, which standardizes business regulations across 17 African countries. This means that procedures for debt collection in Mali follow OHADA’s uniform acts, particularly those relating to commercial transactions and enforcement measures. Courts in Mali are generally reliable but may be slow, so foreign creditors should consider amicable and administrative remedies before resorting to litigation.

2. Pre-Litigation Measures: Amicable Debt Recovery

Before filing a lawsuit, it is advisable to attempt an amicable settlement. Sending a formal demand letter (known locally as a mise en demeure) is a necessary first step. This written notice should outline the debt amount, contract terms, and payment deadline, while warning of possible legal action if the debtor does not respond.

Often, Malian companies are responsive to formal communication from foreign creditors, especially when it comes from a local lawyer or collection agency. Employing a Malian law firm or a specialized debt collection in Mali service can help bridge cultural and procedural gaps, as local professionals know how to negotiate within the framework of Malian business etiquette.

3. Judicial Debt Collection

If an amicable resolution fails, court proceedings may become necessary. Under OHADA law, creditors can pursue two main legal actions:

• Order for Payment Procedure (Injonction de Payer): This simplified process is suitable for uncontested debts supported by written evidence, such as invoices or contracts. The creditor files a petition with the competent commercial court, and if approved, the judge issues an order requiring the debtor to pay. The debtor then has 15 days to object; if no objection is filed, the order becomes enforceable.
• Ordinary Civil Action: If the debt is disputed, or if the debtor challenges the order, the case proceeds through ordinary civil litigation. This can take longer and involve evidentiary hearings and expert reports. American exporters should be prepared for delays and should ensure that contracts are well-drafted with clear payment obligations.

4. Enforcement of Judgments

Once a judgment is obtained, enforcement in Mali is carried out through judicial officers (huissiers de justice). They may seize the debtor’s assets, bank accounts, or movable property to satisfy the debt. While enforcement is generally effective in major urban centers like Bamako, it can be more complex in rural areas where assets may be difficult to identify. Foreign judgments, including those from U.S. courts, are not automatically enforceable in Mali; they require a process of recognition (known as exequatur) before they can be executed.

5. Practical Recommendations for American Exporters

To minimize the risk of non-payment and simplify debt collection in Mali, American exporters should take preventive measures at the contract stage:

1. Conduct Due Diligence: Verify the Malian buyer’s financial status and trade reputation through local chambers of commerce or embassies.
2. Use Clear Contracts: Draft bilingual contracts (English and French) governed by Malian or OHADA law, with specific payment terms and dispute resolution clauses.
3. Include Arbitration Clauses: Arbitration under the Common Court of Justice and Arbitration (CCJA) in Abidjan is often faster and more predictable than local court proceedings.
4. Secure Payments: Use letters of credit or advance payments to reduce credit exposure.
5. Engage Local Counsel: A local attorney familiar with debt collection in Mali can facilitate negotiations, file legal actions, and assist with enforcement.

6. Conclusion

Recovering debt in Mali can be challenging but not impossible. With a combination of thorough contract preparation, local expertise, and awareness of OHADA procedures, American exporters can effectively protect their financial interests. Whether pursuing amicable settlement or court enforcement, the key to successful debt collection in Mali lies in preparation, patience, and partnership with trusted local professionals.

Source: Grandliga website