The last French troops left Mali on August 15. AP
The last French troops left Mali on August 15. AP
The last French troops left Mali on August 15. AP
The last French troops left Mali on August 15. AP


Is France's withdrawal from Mali the end of its 'forever war'?


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August 17, 2022

On August 15, the last French soldier left Mali, officially ending Paris's nine-year military presence inside the country. The French Ministry of Armed Forces rightly praised the performance of its troops, who executed a six-month withdrawal with daunting logistical implications involving 2,500 personnel, 4,800 containers and 1,800 vehicles. But this technical achievement hardly hides the fact that the retreat is, first and foremost, a result of a diplomatic crisis between France and Mali. More critically, it leaves the Sahel region in an uncertain security environment.

France's intervention in Mali began on January 11, 2013 to prevent a takeover of Bamako, the capital city, by extremists. The operation, greenlighted by then French president Francois Hollande, was initially hailed as a swift success – to the extent that Mr Hollande received a warm welcome during his visit to Bamako a month later. The cheers, however, quickly faded away, as Mali’s then president, Ibrahim Boubacar Keita, struggled to return good governance to a country plagued by corruption and underdevelopment.

The terrorist threat resurfaced soon enough.

By now, extremist groups refocused their attacks on the tri-border area between Mali, Burkina Faso and Niger. This forced France to broaden the scope of its mission; from 2014, its so-called Operation Barkhane not only spanned Mali but the entire Sahel band. A new regional entity called the G5 Sahel, meanwhile, was established to include Mauritania, Burkina Faso, Niger, Chad, and Mali. For Paris, the objective of Operation Barkhane was to support the G5 Sahel towards the gradual transition to local armed forces.

Despite these diplomatic arrangements, the security environment kept worsening in Mali. Increasingly resentful of Keita's leadership, Bamako's military commanders led by Col Assimi Goita overthrew the president. The coup left French President Emmanuel Macron in a conundrum. Should he give priority to the counterterrorism missions under way by supporting the military, or should he stand for democratic principles by rejecting the coup? At first, Paris tried to find a third way, calling for the return to the rule of law in Mali while maintaining co-operation with its armed forces.

French forces had been fighting in Mali for nearly a decade. AFP
French forces had been fighting in Mali for nearly a decade. AFP
he operation, green-lit by then French president Francois Hollande, was initially hailed as a swift success, but the terrorist threat resurfaced

By May 2021, however, this gamble proved unsustainable. The junta not only kept postponing its planned transition to democratic rule, but its leaders increasingly saw France as a rival, rather than a partner. For sure, French influence in Bamako under Keita's presidency had fed local discontent for what was perceived by opponents to be a form of neo-colonialism. But after 2020, the military rule built on that resentment to cement its own domestic legitimacy vis-a-vis the foreign power. Mali, moreover, asked a Russian private security company, Wagner Group, to deploy contractors in the country – a move that was perceived as openly antagonising France. The bilateral relationship then unravelled in the first months of 2022, with Bamako ordering the immediate retreat of French forces and the suspension of the defence agreements between the two countries.

The August 15 withdrawal possibly marks the end of an era in France-Mali relations, but the future of the fight against terrorism in Western Africa remains uncertain. Although the military in Bamako argued domestically that it would do a better job than the erstwhile civilian leadership and its foreign partners in combatting the armed groups, it has so far failed to curb the tide of terror attacks. Just a week before the withdrawal, 42 Malian soldiers died in co-ordinated attacks launched by militants on the city of Tessit. Five days later, another assault led by ISIS killed 20 people in the Menaka region.

Meanwhile, in Paris, Mr Macron and his advisers have had to rethink their regional strategy. The retreat from Mali, which hosted about half of French troops for the Sahel, implied a rebalancing of resources and personnel among the other partner countries, namely Burkina Faso, Chad and Niger. The latter now constitutes the centre of gravity for Operation Barkhane, although authorities in Niger have carefully downplayed the significance of that move. Niamey maintains close ties with Paris, but Nigerien President Mohamed Bazoum, who was elected last year, is mindful of the political risks in maintaining close ties with French forces. Noticeably, the official communique from Mr Macron's office on the military retreat from Mali did not mention Niger.

At the same time, Paris seems intent on finding new regional partners in its counterterrorism operations. Mr Macron's visit to Cameroon, Benin and Guinea-Bissau last month emphasised the growing importance of both the Gulf of Guinea and the Chad basin region towards this end. In recent years, the scope of the terror attacks conducted by groups such as Boko Haram and ISIS's West Africa Province have steadily widened, which has only increased the need for greater regional co-ordination.

The difficulty for Paris, however, is that it is having to draw down its forces from the region during this critical period. From deploying 5,000 soldiers a year at the height of Operation Barkhane, it is today sending just 3,000 of them. This reduction is being driven less by military requirements than it is by domestic political considerations. Having lost his majority in the National Assembly in June, Mr Macron no longer has the political capital to sustain a military operation that is increasingly being viewed by his critics as France’s "forever war".

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  • In April 2021, Hayah Insurance unveiled a workplace savings plan to help UAE employees save for their retirement.
  • Lunate, an Abu Dhabi-based investment manager, has launched a fund that will allow UAE private companies to offer employees investment returns on end-of-service benefits.
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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

Updated: August 17, 2022, 2:00 PM