Breaking the informal cycle : integrating artisanal and small-scale mining into the formal economy

Abstract

Illegality and informality persist in the artisanal and small-scale mining (ASM) sector, despite the increasing drive by various stakeholders on the African continent to formalise the sector. This paper applies five categories of barriers to formalisation, identified in the literature, to analyse the factors hindering the formalisation of the sector, namely: absence of formalisation frameworks, inappropriate frameworks, weak enforcement, exclusionary policies, and broader structural challenges. A narrative literature review reveals that the absence of tailored frameworks leaves ASM operations criminalised and unsupported, while poorly designed or overly rigid regulations fail to align with the sector’s diverse socio-economic realities. Weak enforcement, compounded by corruption and limited institutional capacity, sustains illicit practices and undermines regulatory effectiveness. Exclusionary policies, characterised by costly and complex licensing requirements, marginalise ASM operators and drive them further into illegality. In addition, structural issues, including limited access to finance, technology, and markets, entrench reliance on informal networks and perpetuate cycles of poverty and environmental harm. The study found that successful governance of ASM requires context-sensitive policies that balance regulatory interventions with socio-economic realities. The study recommends enhancing institutional capacity and establishing inclusive pathways that enable ASM operators to integrate into the formal economy.