TotalEnergies, a major oil distributor in Africa, operates 4,700 service stations across 35 countries. However, the company’s presence in the Sahel region is rapidly shrinking, as evidenced by its recent exit from Mali.
In January 2025, TotalEnergies sold its 80 service stations and distribution operations in Mali to Coly Energy Mali, a company linked to Bénin Petro. This move comes on the heels of a tax reassessment in Mali, along with worker strikes that have complicated operations. Diplomatic tensions between France and Mali also seem to have played a role in the decision, reflecting broader instability in the region.
Tax Issues and Growing Uncertainty in the Region
TotalEnergies’ decision to exit Mali follows the termination of tax treaties between Burkina Faso, Mali, and Niger with France in 2023. This shift has created uncertainty for businesses, with companies now facing the potential for double taxation. TotalEnergies has indicated that it may also withdraw from Burkina Faso, marking a broader retreat from the Sahel region.
The company has already divested from several countries in the region, including Chad, Niger, the Central African Republic, Liberia, and Sierra Leone. Low profitability in these markets, coupled with increased operational challenges, has led to the sale of these assets.
Orano’s Struggles in Niger
TotalEnergies is not the only French company facing difficulties in the region. Orano, a French uranium company, was forced to suspend operations in Niger after losing a key mining permit. This suspension was further exacerbated by closed borders in the country, leading Orano to file for arbitration to seek damages. The company is attempting to recover €250 million worth of uranium left stranded in Niger due to the halt in operations.
Broader Business Environment: A Shift in Africa’s Economic Landscape
While French companies are facing increasing challenges in the Sahel, the region’s shifting economic and political landscape is impacting more than just French firms. Barrick Gold, a Canadian company, encountered similar repression in Mali. The country’s new mining law, which increased taxes and state ownership rights, led to Barrick Gold’s rejection of these terms, resulting in arrests and mine shutdowns. This suggests that the challenges in Mali and other Sahel nations are not isolated to French businesses alone.
Other French companies operating in the region are also under pressure. Bramali (Castel Group) and Orange are facing new taxes, particularly on alcohol and mobile money transfers. The Malian government hopes to raise €305 million annually through these new taxes, aimed at compensating for the loss of international aid.
French Presence in Sub-Saharan Africa
Despite these challenges, the French economic footprint in Africa remains limited. In 2023, sub-Saharan Africa accounted for just 1.8% of France’s exports and 1.9% of its imports. The primary trade partners for France in Africa are Nigeria, South Africa, Côte d’Ivoire, and Angola, with the Sahel region playing a relatively minor role in France’s overall African trade.
As TotalEnergies continues to scale back its operations in the Sahel, the future of French business interests in the region remains uncertain. The ongoing political and economic shifts in Mali and neighboring countries will likely influence future investment decisions for both French and international companies operating in Africa.