The African Union on Friday ended its suspension of Mali which began after the ouster of president Ibrahim Boubacar Keita by the military in August.
Regional bloc ECOWAS was the first to lift sanctions on Bamako after the West African country's government appointed a civilian Prime Minister.
In a post on Twitter, the AU's peace and security council said it was satsified by recent political developments in Mali.
ECOWAS's sanctions included border closures, a trade and monetary embargo.
Mali's transitional government headed by former defence minister Bah Ndaw has been given 18 months to organise elections and hand over power.
Faced with a troubled economy, a militant insurgency and a pandemic, the sanctions had made it hard for Bamako to import critical supplies and stifled its revenue sources.