Abstract:
Artisanal and small-scale mining (ASM) operations continue to grow across sub-Saharan Africa and
serve as a source of livelihood to many rural communities. Owing to safety, health, environmental, and
social concerns, the occupation has been regarded as a menace in several sub-Sahara African countries.
Recent studies in the field of ASM prescribe formalization as a way to tame its excesses while enhancing
its potential. This paper explores the concept of formalization as it relates to ASM and how it is being
affected by the funding situation. The paper seeks to address the question as to whether formalization
of artisanal mining operations can achieve the desired results in view of the lingering credit constraints
in this mining subsector. It is recommended that, as a way of extending the scope of formalization, focus
should be placed not only on access to credit in ASM but also towards optimizing the creditworthiness
of ASM firms, with the goal of improving the viability of the operations.
