The United Nations Economic Commission for Africa (UNECA) is pushing for the establishment of an Artisanal and Small-Scale Mining Enterprises (ASME) Hub to strengthen and sustain the operations of local miners across the continent.
The initiative is aimed at improving the socio-economic value generated from Africa’s artisanal and small-scale mining (ASM) sector, particularly in mineral-rich countries.
A side session on the proposed ASME Hub is scheduled to hold this month to examine strategies for scaling up the sector and retaining more value from its activities within African economies.
According to UNECA, the hub will provide a platform for coordination and dialogue among stakeholders to address the risks and challenges limiting value optimisation in the subsector.
The session will feature findings from a comprehensive assessment of the state of ASM in Africa, covering the sector’s role in mineral value chains, regulatory and policy frameworks, as well as financing, trade and value addition.
Participants will also consider proposals for operationalising the hub, including the creation of a web portal to provide information on its activities and a governance structure comprising a Steering Committee and a Technical Working Group.
The proposed framework will also examine the frequency of meetings of the two bodies and strategies for financing their activities and maintaining the web portal.
UNECA said the session would bring together experts from government, the private sector, artisanal and large-scale mining companies, downstream businesses, financial institutions, multilateral development banks, communities, civil society organisations and philanthropic bodies.
The ASM sector remains an important contributor to African economies through job creation, foreign exchange earnings, mineral production and support for rural economies and poverty reduction.
UNECA said about 13.2 million people were directly employed by the subsector across Africa, while other estimates, including one by the Extractive Industries Transparency Initiative (EITI), put direct employment at more than 40 million people.
The commission estimated the sector’s contribution to foreign exchange earnings at between $3 billion and $5 billion.
It also noted that the Africa Mining Vision’s Action Plan recognises the potential of ASM to contribute to integrated and sustainable rural socio-economic development and poverty reduction.
Despite its economic importance, the sector continues to face negative perceptions because of environmental degradation, health and safety concerns and the informal nature of many operations.
UNECA noted that limited formalisation and professionalisation had also contributed to the sector operating largely as an enclave, with limited value addition to minerals produced.
The proposed ASME Hub is therefore expected to help stakeholders develop a coordinated approach to addressing these challenges while improving the sector’s contribution to African economies.
The upcoming session will seek stakeholder consensus and ownership of the hub, validate findings from the assessment of ASM in Africa and review proposals for its operational framework.
It will also gather stakeholders’ views on financing and revenue mobilisation mechanisms, as well as the services the hub should provide to ensure its long-term sustainability.
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