Due to its informality and its perception as a high-risk sector, artisanal and small-scale gold mining (ASGM) has had limited access to formal finance, and has traditionally been financed by informal lenders, such as local mining community groups, family members, and gold or mercury traders who offer finance in return for access to future gold production.
This informal financing typically supports ASGM technologies and practices that are less costly in the short term, but generally less efficient with greater environmental and health impacts. Better ASGM practices require a level of upfront financing that informal lenders are either unable—or unwilling to make.
This planetGOLD issue brief reviews past experiences with delivering financial and allied services to the ASGM sector and examines existing barriers to attracting formal finance and investment in the sector. It concludes with recommended interventions for governments, donors and other allies to help improve ASGM’s access to formal finance in the future.
| 
| 
|
