(Ecofin Agency) - The brief points out that the boom in artisanal gold mining is due in particular to the country's economic crisis, the opening up of the mining sector to "all competent people" and the rising price of the precious metal. 

Artisanal small-scale mining (ASM) accounts for 62% of Zimbabwe's gold production, according to a policy published on June 8 by Megatrends Afrika, a research platform launched by the Federal Republic of Germany to study the major trends shaping the future of Africa.

The brief entitled “Crisis, Mbingas and Artisanal Small-Scale Mining in Zimbabwe : Can informal mining entrepreneurship offer a gateway for youths?” was written by Victor Muchineripi Gwande, a history professor at the University of the Free State in South Africa, whose research focuses on the economic history of Southern African countries. It states that artisanal and small-scale mining is a major job-creating sector in Zimbabwe. Official data show that over 500,000 small-scale miners - mainly gold miners - operate in this southern African country, supporting around three million people. For its part, the Zimbabwe Miners' Federation reports that the 50,000 or so registered artisanal miners employ an average of 10 workers each.

Other sources, however, estimate that the number of artisanal miners has risen to around 1.5 million in recent years, due in particular to the worsening economic crisis and the rising price of the precious metal.  

The policy brief points out that the growth of artisanal mining is due in particular to the economic crisis that has gripped Zimbabwe since the failure of former president Robert Mugabe's land reform and the government's decision to open up the mining sector to "all competent persons". Previously, mining had been the preserve of large international mining companies.

Political connections 

The third factor driving the growth of artisanal and small-scale mining is the strong demand for gold, against a backdrop of rising prices on the international market.

Although the activity is often perceived as uncoordinated, opportunistic, and hasty digging by individuals with few connections between them, the report points out that a hierarchy has emerged in the sector. This hierarchy includes of a title holder, a sponsor, a buyer, and diggers.

The titleholder is essential to confer some sort of legality to this type of mining, while the sponsor is a person with substantial resources to finance the activities of the digging groups.

The sponsor, who owns or leases the equipment needed to extract the gold, is often a local businessman with connections to powerful politicians, including traditional chiefs, members of the parliament, and local elected representatives.

This operating environment exposes the business to a number of abuses and prevents it from contributing more effectively to economic growth.

In theory, the Mining Act allows all Zimbabweans to apply for mining permits. In practice, however,  a limited number of people are able to obtain mining licenses, due to the high cost of prospecting permits and the fees required to pay mining consultants and exploration geologists. There are bureaucratic hurdles, given that any applicant for a mining license has to deal with numerous government institutions, such as the Ministry of Mines, the police, the Environmental Management Agency (EMA), the Zimbabwe National Water Authority (ZINWA), and local authorities.

Streamline administrative procedures 

On the other hand, informal artisanal gold mining is marked by violence perpetrated by armed gangs who often operate with impunity, due to their connection with politicians who exploit them to deal with their opponents. Such clientelism prevents young people from formalizing their artisanal mining activities.

The policy brief indicates that artisanal, small-scale gold mining has given rise to a caste of miners known locally as "mbingas", a Zimbabwean slang term meaning "filthy rich young persons". These wealthy young people, whose opulence is admired by the local population, are nonetheless seen as positive influencers who embody the entrepreneurial spirit. Some "mbingas" have formalized their activities. The case of Pedzai Sakupwanya, better known locally as "Scott", is particularly noteworthy. This "ghetto boy", who claims to employ over 400 artisanal miners, has set up formal businesses such as Better Brands Jewellery and Better Brands Mining Company.  

To facilitate the formalization of artisanal gold mining, the author recommends that Zimbabwean authorities should create a specialized fund to provide financing to young people wishing to obtain mining permits, streamline administrative procedures, and strengthen the rule of law to put an end to the corruption and violence that plague the sector.