Financing the artisanal and small-scale gold minig sectorof Zimbabwe : A review of opinions

Abstract

The Artisanal and Small-Scale Gold Mining (ASSGM) Sector is registering a tremendous growth both in Zimbabwe and Africa. In Zimbabwe, this sector is benefiting directly and indirectly over three (3) million people, making this sector very important in employment creation since Zimbabwe has formal employment shortcomings. ASSGM is contributing both at micro and macro levels of the economy. At macro level, it is contributing more than 60% of gold to Fidelity Printers and Refineries, 1.2% to the GDP of the country and 0.76% of government revenues royalties. At micro level, it is helping in poverty eradication and providing income to the unemployed. However, the ASSGM sector is facing financial challenges. This review paper seeks to highlight other financing options that may be used by this sector since financing from the Reserve Bank of Zimbabwe (RBZ), Government, banks and NGOs has shown little success in this sector. There is need for training of small scale and artisanal miners in mining and financial skills to enable them increase their production and manage their finances. The paper noted that the following financing options have capacity to improve the ASSGM mining sector: cooperatives, joint ventures and partnerships are sustainable in this sector.