Ghana’s artisanal and small-scale mining (ASM) sector continues to play a vital role in the country’s economic growth, contributing an impressive $5bn in foreign earnings from gold exports in 2024. This significant milestone highlights the sector’s expanding influence within Ghana’s mining industry, as reported by African Mining Week (AMW), a leading platform for mining developments across the continent.
According to Godwin Nickleson Amarh, General Secretary of the Ghana National Association of Small-Scale Miners, artisanal miners produced an outstanding 1.6 million tons of goods in 2024. The sector now accounts for approximately 35 percent of Ghana’s total gold output, directly employing over one million people, with an additional 4.5 million individuals benefiting indirectly through associated economic activities.
‘Small-scale miners are the primary suppliers of raw materials to local downstream players for value addition,’ Amarh told African Mining Week, underscoring the critical role these miners play in Ghana’s mining value chain and broader economic landscape.
The economic impact of artisanal mining in Ghana
Artisanal mining has emerged as a cornerstone of Ghana’s economy, not only contributing significantly to foreign exchange earnings but also providing widespread employment opportunities. The sector’s growth has been driven by rising global demand for gold and other critical minerals, as well as government policies aimed at formalising and regulating small-scale mining activities.
With artisanal miners producing over a third of Ghana’s gold, their contribution is pivotal to the country’s status as one of Africa’s leading gold exporters. Beyond employment, the sector supports local businesses, stimulates rural development, and fosters entrepreneurship within mining communities.
However, despite its substantial contributions, the ASM sector faces persistent challenges that threaten its sustainability and growth potential.
Challenges facing Ghana’s artisanal mining sector
While artisanal mining is a major economic driver, it is not without its challenges. According to Amarh, one of the most pressing issues is the limited access to geological data, which hampers miners’ ability to operate efficiently and sustainably. ‘The majority of small-scale miners are working on a trial-and-error basis, and we need the data to operate more sustainably,’ he explained.
This lack of geological information makes it difficult for miners to identify productive sites, conduct accurate feasibility studies, and secure financing from investors who require detailed resource assessments. Without this critical data, miners face increased operational risks, lower productivity, and limited access to formal credit facilities.
Another significant challenge is the lack of financing for small-scale mining operations. Traditional financial institutions are often hesitant to provide loans due to the perceived risks associated with ASM, exacerbated by the absence of reliable geological data. This financing gap limits miners’ ability to invest in modern equipment, adopt environmentally friendly practices, and scale their operations.
Environmental degradation caused by illegal mining activities, commonly referred to as galamsey, is also a major concern. Illegal operations often disregard environmental regulations, leading to deforestation, water pollution, and land degradation. These activities not only threaten Ghana’s natural resources but also undermine the legitimacy of legal small-scale miners who operate within regulatory frameworks.
Government and industry initiatives for sustainable mining
Recognising these challenges, the Ghana National Association of Small-Scale Miners, in collaboration with the government, has launched several initiatives to support the sector’s sustainable development.
One key initiative is the partnership with the World Bank to provide geological data for lands allocated to small-scale miners. This collaboration aims to enhance resource mapping, allowing miners to identify viable mining sites with greater precision. ‘Better geological data will unlock financing opportunities as it allows for more accurate feasibility studies and structured funding models for mining operations,’ Amarh noted.
Additionally, the association has established a task force in partnership with the government to monitor illegal mining activities. This task force is responsible for enforcing regulations, curbing environmental damage, and promoting responsible mining practices. By targeting illegal operations, the initiative seeks to create a more level playing field for legal artisanal miners who adhere to environmental and safety standards.
Another significant development is the proposed establishment of the Ghana Gold Board, designed to improve transparency in gold trading. The board will ensure that all gold produced by local miners is first sold domestically to the government before being exported to international markets. This policy is expected to enhance revenue tracking, reduce smuggling, and increase the government’s share of mineral earnings, ultimately benefiting the national economy.
Regional collaboration and future opportunities
Ghana’s efforts to support artisanal mining extend beyond its borders. The Ghana National Association of Small-Scale Miners is actively collaborating with counterparts from Zambia, Kenya, Cote d’Ivoire, and the Democratic Republic of Congo to develop environmental management standards and best practices. This regional cooperation aims to promote sustainable mining across Africa, addressing common challenges such as environmental degradation, resource governance, and financial inclusion.
Moreover, the ASM sector is well-positioned to tap into emerging opportunities within the critical minerals market, driven by global demand for resources essential to clean energy technologies. Minerals like lithium, cobalt, and rare earth elements are becoming increasingly valuable as the world shifts towards renewable energy and electric vehicles. By adopting sustainable practices and leveraging regional partnerships, Ghana’s artisanal miners can diversify their output beyond gold, enhancing the sector’s resilience and long-term growth prospects.
Credit: Africabriefing
