Articles
Informal Mining In Africa… Its Motives And Risks
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Preparing by: Asmaa Hassan
Assistant Researcher in African Affairs Unit
Informal mining is an economic phenomenon with complex political dimensions, overlapping with Issues of State sovereignty and natural resource management, as well as social stability, making it one of the most important challenges facing the continent’s governments and open the way for informal interest networks, and this activity affects power relations within communities through the emergence of new actors outside the traditional State, reinforcing conflicts over economic rights and the ownership of resources and the increase in unregulated mining puts Governments at a difficult choice between legalizing and benefiting from the sector or taking drastic action that could lead to social unrest, In the light of these challenges, it is necessary to look at its political and strategic dimensions, especially as this phenomenon threatens the stability of many African countries.
Informal Mining In Africa
Informal mining, or so-called “artisanal or small-scale mining”, is considered economic activities in many African countries, Millions of people depend on it as a major source of income, and this type of mining is prevalent in countries such as Mali, Liberia, Ghana, the Democratic Republic of the Congo and South Africa, In addition to the Sudan, it also includes the extraction of minerals such as gold, cobalt and diamonds by hand or simple equipment, According to World Bank estimates, about 40 million people are employed in the global artisanal mining sector, a large part of whom are concentrated in Africa, representing Ghana’s informal mining alone accounts for about 30% of gold production, and despite its role in providing thousands of jobs, it causes serious environmental and social problems, such as deforestation, water contamination with mercury, as well as child labour, leading Governments and international organizations to seek solutions to regulate it and reduce its negative effects.[1]
Asylum motives for informal mining
Informal mining is the result of deteriorating political, economic and social conditions within the State and its inability to control its internal affairs. The motives can be analyzed as follows:
1- Weak Government and absence of State: Weak Government leads to widespread administrative corruption, as illegal activities may be overlooked in exchange for bribes or political support, and States with weak State institutions decline their ability to enforce the rule of law, leading to the emergence of a shadow economy, including informal mining.
2- Disintegration of social contract: In some States, citizens feel economic marginalization and lack of distributive justice, leading them to seek out sources of income outside the State, such as informal mining, as a means of resisting economic exclusion imposed by ruling elites.
3- Armed conflict and financing of terrorist groups: In some areas, such as Central Africa, informal mining is used to finance armed groups or non-governmental militias, leading to further political and security instability, known as the “war economy”, where natural resources are used as a tool to finance conflicts.
4- Excessive bureaucracy and official monopoly of resources: In some countries, governments impose strict regulations granting mining concessions to large companies at the expense of local communities, pushing individuals to informal mining as a reaction to politically backed economic monopoly.
5- Regional disparities and geographical marginalization: Informal mining is often concentrated in politically and economically marginalized areas, where the population feels unfair in the distribution of state natural resources, leading to the exploitation of natural wealth independently of the state.
Informal mining is not merely an illegal economic activity, but an expression of political and structural imbalances within the State, reflecting crises of governance, social justice and unbalanced development.[2]
Risks of illegal mining
Informal mining is not just a random economic activity, it is a phenomenon closely linked to several previously mentioned crises, which cause many risks, extending to several dimensions that vary between political, social and security, as well as health and environmental, making it one of the major challenges for governments, and the risks can be divided as follows:
1- Political risks and their impact on States’ internal stability:
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The spread of the war economy: in many countries, such as the Democratic Republic of the Congo and parts of the African coast, informal mining is exploited to finance armed groups, thus promoting political violence and instability.
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Rampant political corruption: weak Governments may collude with informal mining networks, where political elites benefit from illicit profits, deepening the crisis of political legitimacy and causing the State’s failure.
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The disintegration of legal legitimacy: The prevalence of illegal mining weakens the rule of law, with authorities condoning violations of environmental and labour laws, which helps impunity.
2- Economic risks and their impact on the political economy:
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Boosting the shadow economy: Informal mining contributes to expanding the informal economy, reducing the state’s tax collection capacity and placing financial pressures on public spending, especially in developing countries that rely on natural resources as a major source of revenue.
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Dismantling the formal economic system: The acquisition of strategic mineral wealth by informal networks weakens legal sectors, which can strengthen oligarchy’s influence and deepen the caste gap between the social classes.
3- Social risks and threats to the social fabric
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Reproduction of unfair caste structures: Marginalized groups (such as indigenous people or migrant workers) are often exploited in informal mining activities, leading to the reproduction of patterns of marginalization and social exclusion.
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Inflaming racial and ethnic tensions: The scramble for mineral resources leads to disputes between different racial groups, which can lead to civil strife or widespread sectarian violence.
4- Geopolitical and regional implications
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Cross-border resource conflicts: Cross-border resource conflicts: Informal mining in some regions leads to regional disputes over resource exploitation, as in the case of the conflict in the gold-rich Kidal region between (Mali, Niger, Burkina Faso – various armed groups).
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National security threat: In some countries, minerals extracted from informal mining operations are smuggled into global markets through illegal smuggling networks, threatening national security by financing illicit activities such as terrorism and money laundering.
5- Environmental risks and governance implications:
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Erosion of environmental sovereignty: Informal mining is a challenge to state policies in natural resource management, where wealth is depleted without government control, weakening the state’s ability to impose sustainable development strategies.
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Weak environmental security policies: States with weak environmental institutions fail to address pollution from informal mining, exacerbating the crisis of climate change and desertification, which threatens food and economic security.[3]
Most prominent African States
Many African States suffer from the craft mining crisis, leading to many challenges, which threaten the State’s political, economic and security stability, including:
Mali
Mali’s gold is a key pillar of the economic and political equation The country is one of Africa’s largest gold producers. This strategic resource is not only a major source of government revenue but also play a pivotal role in identifying internal political balances and guiding external relations, Especially with major economic forces and multinational companies invested in the sector and yet weak governance and institutional control have led to the proliferation of informal mining, which has become a parallel economy that weakens the State’s ability to collect tax revenues and impose its sovereignty over natural resources.
Hundreds of thousands of workers participate in this sector, who see an opportunity to improve their living conditions with high rates of poverty and unemployment, but despite the direct economic benefits of this activity, it poses significant political and security threats, often outside the legal framework, allowing for the expansion of smuggling networks and the financing of non-governmental actors, Including armed groups that exploit the lack of censorship to exert influence on some mining areas, informal mining is fuelling social tensions between communities and large corporations, with many feeling marginalized as a result of foreign investments that do not directly benefit the population.
With these complex dynamics, the Malian Government faces a dual political challenge, on the one hand, seeking to legalize artisanal mining and integrate it into the formal economy to boost revenues, and on the other hand trying to reduce the security and social impacts that may destabilize the interior and open up the space for external interventions.[4]
Ghana
Ghana is one of West Africa’s leading economic forces thanks to its mineral wealth Top gold, where it occupies a leading position among the continent’s largest producers This precious metal accounts for more than 40% of the country’s total exports. This makes it an essential pillar of financial stability and an influential factor in internal and external political balances and yet this strategic resource puts the State in the face of complex challenges related to wealth distribution, governance and competition between multinational corporations and communities dependent on traditional mining.
Besides large corporations, informal mining, known locally as “Glamsey”, constitutes, an important part of the economic landscape, on which hundreds of thousands of Ghanaians depend, especially in rural areas experiencing unemployment and poverty, and although it contributes to the creation of many jobs, this sector overshadows political and security stability, draining natural resources, polluting water sources, and exacerbating local conflicts between mining communities and large government-backed corporations.
Furthermore, Glamsey’s activities have become a gateway to widespread corruption, with some local officials accused of colluding with illegal mining networks in exchange for financial gains. Undermining the rule of law and putting the Government to a real test in the fight against corruption and promoting transparency, The proliferation of these activities also creates a fertile environment for external interventions foreign companies, especially those from China, are suspected of being involved in the State’s informal mining operations, sparking diplomatic tensions between Ghana and its trading partners.
To address these challenges, the Ghanaian Government has adopted repressive and regulatory policies with campaigns to combat illegal mining and strict penalties for violators, but at the same time seeking to integrate some artisanal mining workers into the formal economy through initiatives “Community mining”, which aims to strike a balance between economic development and environmental sustainability. However, the persistence of tensions between large corporations and local communities, coupled with political and economic pressures, makes Ghana’s gold profile a key determinant of the country’s political and economic future.[5]
South Africa
South Africa has always been one of the world’s largest mining powers. Gold has played a pivotal role in shaping its national economy and social policies. In addition to its internal and external balances, although production has declined in recent decades owing to the depletion of some old mines and high extraction costs mining sector continues to be one of the most important sources of government revenues, A key area of competition between multinational corporations and trade unions, making it the focus of the country’s political and economic conflict.
It also constitutes informal mining, or what is known locally as “seismic” Zama Zamas, a mounting challenge for the authorities, where thousands of unemployed workers resort to indiscriminate excavation in abandoned or illegal mines with rising unemployment and poverty, although this activity provides a livelihood for many poor communities, However, it represents a growing security and political problem, which is linked to the spread of organized crime mineral smuggling and violent clashes between informal mining workers and security forces or major corporations.
Some groups working in informal mining have also become part of international criminal networks, leading to heightened political tensions due to accusations by the Government of inability to control the sector, and in some cases some local officials are suspected of being complicit with illegal gold traders, reinforcing corruption and weakening the State’s control over its natural resources.
The South African Government is attempting to strike a balance between promoting investment, imposing the rule of law and protecting local workers’ rights by imposing reforms in mining laws, tightening control over illegal mines and integrate some informal miners into the formal economy. However, these efforts continue to face pressure from trade unions, protests from affected communities, and security challenges associated with smuggling networks and organized crime.[6]
In conclusion Informal mining is not just an economic phenomenon, it is a reflection of the State’s vulnerability. The absence of social justice, the failure of sustainable development policies and Governments that do not have strong governance policies to control this phenomenon “, ending up with catastrophic environmental, economic and social outcomes, Many African States, such as Ghana and Mali, are also suffering alongside South Africa’s State. Destructive environmental impacts of this activity, where indiscriminate mining operations lead to deforestation contamination of rivers with mercury, cyanide and soil erosion, threatening biodiversity and food security, and some informal mining activities are linked to the financing of armed groups, smuggling minerals, and increasing organized crime, making it a security and political challenge for African governments, so dealing with this phenomenon requires comprehensive solutions that include strengthening the rule of law, fighting corruption, and economically empowering communities to ensure equitable and sustainable use of natural resources.
Recommendations
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Imposition of State sovereignty over national resources
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Strengthen the Government’s presence in mineral-rich areas, particularly in States such as the Democratic Republic of the Congo, Mali and the Sudan, where informal mining activities are controlled by armed groups.
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Strict restrictions on mineral smuggling by intensifying intelligence cooperation between African countries and modernizing border control systems using modern technology (e.g. drones and artificial intelligence).
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Work to integrate informal mining into the formal economy through simplified licences, while monitoring compliance with environmental and labour standards.
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Enhanced governance and transparency in the mining sector
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Develop common regional legislative frameworks among African States to combat and legalize informal mining in a fair manner.
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Implementation of the Extractive Industries Transparency Initiative in all mineral producing States to ensure disclosure of revenues, financial flows and mining contracts.
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Establish independent oversight bodies to monitor mining operations and address widespread corruption in the sector.
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Strengthening economic diplomacy to combat smuggling and illicit trade
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Develop a common regional system to control mineral trade, such as standardization of customs duties and enhancement of cooperation between African countries’ customs offices.
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Negotiate with international partners such as the European Union and China to ensure the import of African minerals only from legal sources, and activate supply chain verification mechanisms.
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Strengthen cooperation with international organizations such as the African Union and the United Nations to combat the exploitation of children in informal mining, particularly in States such as Burkina Faso and the Niger.[7]