Zambia is adopting Ghana’s regulatory framework for artisanal and small-scale mining (ASM) in an effort to unlock an estimated $1.8 billion in gold production value.
The Southern African nation aims to move its fragmented small-scale gold sector from the informal economy into a regulated, taxable industry to boost national revenue and reduce mineral smuggling.
The decision comes as the Zambian government seeks to diversify its mining portfolio, which has historically been dominated by copper production. By replicating the “Ghana model,” Zambia intends to provide a legal pathway for thousands of artisanal miners to operate within a formal system.
The strategy involves the creation of structured licensing regimes, the establishment of official gold buying centres, and the provision of technical support to improve ore recovery rates.
Ghana, Africa’s largest gold producer, has spent years refining its approach to ASM through the Minerals Commission, focusing on the formalisation of miners into cooperatives. This approach allows the state to monitor production, enforce environmental standards, and ensure that a greater share of the gold reaches the national treasury rather than the black market.
Zambia’s current gold sector is characterised by high levels of illegality and inefficient processing methods. A significant portion of the gold mined by small-scale operators is smuggled across borders, depriving the state of critical royalties and taxes.
Addressing Smuggling and Revenue Leakages
The push for formalisation is driven by the need to capture the true volume of gold production within the country. Industry experts note that Zambia’s official gold statistics have long understated the actual amount of ore being extracted due to the prevalence of undocumented mining.
Under the proposed framework, the Zambian government plans to introduce streamlined licensing processes that make it easier and cheaper for small-scale miners to become legal entities. This is expected to incentivise miners to sell their produce to state-sanctioned buyers.
The government also intends to tackle the environmental degradation associated with artisanal mining. The use of mercury in gold processing remains a critical concern across the region, and the adoption of the Ghanaian model includes the introduction of cleaner, more sustainable processing technologies.
This move aligns with broader trends identified in World Bank reports on extractive industries, which suggest that formalising ASM can alleviate poverty in rural areas while strengthening national fiscal stability.
Beyond revenue, the formalisation effort is expected to improve the safety and working conditions of miners. By bringing these operations under regulatory oversight, the state can enforce basic health and safety standards that are currently ignored in the informal sector.
Zambia’s ambitions are part of a wider economic strategy to attract more foreign direct investment into its mining sector. By demonstrating a stable and transparent regulatory environment for both large-scale and small-scale operators, the country hopes to signal its openness to diverse mineral investments.
The implementation of the new framework will require close coordination between the Ministry of Mines and Minerals Development and local authorities to ensure that the transition from informal to formal mining is seamless for the operators on the ground.
The next stage of the process involves the rollout of training programmes for artisanal miners and the appointment of accredited gold buyers to ensure the market remains competitive and fair.
Zambian officials are expected to further refine these policies following consultations with Ghanaian mining experts to avoid the pitfalls encountered during Ghana’s own transition period, particularly regarding the enforcement of boundaries between small-scale and large-scale concessions.
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