KEY POINTS
- Artisanal and small-scale mining (ASM) is a significant source of employment and economic activity in Africa, particularly in countries like Sierra Leone and South Sudan.
- The sector faces challenges including environmental degradation, health risks, and unsafe working conditions due to its informal nature.
- Recent incidents, such as the tragic deaths of miners in South Africa, underscore the urgent need for formalization and regulation of ASM.
Artisanal and small-scale mining (ASM) is an important part of Africa’s resources sector putting millions to work and driving growth in local economies across the continent.
Although it is an informal kind of economy, ASM contributes to the filling of the gaps left by large scale mining operations – especially in remote areas.
Economic contributions
ASM is a major source of employment across the continent. In countries such as Sierra Leone, artisanal miners contribute a large part to diamond exports and sustain large numbers of people.
Likewise in South Sudan, ASM forms the entire mining sector, directly employing around 200,000 people.
Besides generating income for their residents, these activities also spark additional jobs and services required to run their local economies.
Challenges and risks
Despite its benefits, ASM is fraught with challenges. Environmental degradation, such as deforestation and soil erosion, is prevalent due to unregulated mining practices.
There are also big health risks, for instance, mercury used for gold extraction poses huge health risks to miners, and other communities in the area.
Moreover, the informal status of ASM often leads to unsafe working conditions and exploitation.
Recent incidents highlighting dangers
The perils of unregulated artisanal mining were tragically underscored in January 2025, when at least 78 miners died in an illegal gold mine near Stilfontein, South Africa.
The miners were trapped underground for months after authorities cut off food and water supplies in an attempt to force them out.
This incident highlights the urgent need for formalization and regulation of the ASM sector to prevent such humanitarian crises.
Pathways to formalization
To reduce the risk associated with ASM, integration of ASM into the formal economy is important. Better regulation, better safety standards, and environmental protections are resulting from formalization.
For example, in August 2024, Ghana inaugurated its first commercial gold refinery, to refine locally the country’s exports of gold to add value to the industry.
This will reduce gold smuggling and improve earnings for the nation and in the process provide an example of how formalization can support both the economy and the miners.
Conclusion
Africa’s resource sector is complemented by artisanal mining, which bridges the gaps that have been left by commercial mining and acts as an economic opportunity in areas that have previously been unable to benefit from such wealth.
Yet, the informal nature of the sector poses major difficulties that call for total formalization efforts.
By implementing supportive policies, providing access to resources, and ensuring regulatory oversight, African nations can harness the full potential of ASM while safeguarding the well-being of miners and the environment.
