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Despite high levels of risk, the artisanal and small-scale mining (ASM) sector provides important informal livelihoods to millions of people. However, these gains often come at a cost. Many newcomers to the sector are exploited by buyers and middlemen and become trapped in a cycle of borrowing and indebtedness. There is little official recognition of this exploitation and little done to break the cycle. It has been argued that formalization of ASM is the key to empowering unregistered miners and making the sector more sustainable.
This project works to deepen current understanding of formal and informal financial flows in ASM communities. By recording and analyzing detailed financial dairies for 36 mining households in rural Ghana, the study will expose how formal and informal financial relations affect the livelihoods and well-being of poor individuals in Sub-Saharan Africa. The research will be shared with government officials to inform formalization and micro-financing models.
University of Mining and Technology (UMAT) researchers have been trained in the financial diary method and the target and mining households have been identified. Field data collection began in September 2016 and will continue for 12 months. Detailed financial field data is currently being collected on 36 miners/mining households in rural Ghana (12 each from Kobriso, Japa and Noyem). The data is collected at the household level and therefore includes individuals who play different roles across the ASM value chain. The principal researchers conducted engagement workshops in February 2017 in each community to help strengthen people’s understanding of the research. Data analysis will begin once the full data set is collected.
This project will improve understanding of the formal and informal financial relations and flows in a typical ASM community. This can:
Artisanal and small-scale mining (ASM) is the focus of the 2017 AGM of the Intergovernmental Forum on Mining, Minerals, Metals and Sustainable Development (IGF), held October 16-20 in Geneva. CIRDI […]