Galamsey: Job creation and the future of Ghana's SMEs

Ghana's informal mining sector, often known as galamsey (illegal small-scale mining), has become both a vital source of work for many Ghanaians and a major environmental and economic concern. 

With the rising desire for gold and other minerals, galamsey has gained appeal as a quick way for people to make money, particularly in rural areas. 

However, the damaging environmental practices associated with it have resulted in soil deterioration, deforestation and water pollution, endangering the viability of small and medium-sized enterprises (SMEs) and long-term economic stability. 

The conflict between galamsey's contribution to employment and its long-term harm to SMEs and the overall economy is at the heart of a national quandary. Galamsey's contribution to job development, particularly in disadvantaged rural areas, cannot be underestimated.  

It offers quick and relatively high-paying work to people who would otherwise struggle to make a life. 

However, this short-term economic advantage comes at the expense of long-term economic health, jeopardising the future of SMEs, the environment and national economic security.

Galamsey as a source of employment

In areas with little official career possibilities, galamsey provides a rapid source of money. Young people are driven to this activity since the returns are higher than in traditional employment possibilities such as farming or small-scale business. 

Furthermore, the informal character of galamsey implies that individuals are not required to meet the severe standards or requirements generally connected with formal employment. However, while galamsey creates immediate jobs, it lacks long-term viability. 

The environmental harm it causes considerably affects the possibility for other economic activities, particularly those requiring natural resources such as agriculture and fisheries. 

Long-term harm to SMEs and economic stability

Galamsey's environmental impact is a huge danger to SMEs, particularly those in the agricultural and fishing sectors, which rely significantly on natural resources. 

For example, gold extraction operations pollute rivers with mercury and cyanide, rendering water unfit for farming, fishing, and household usage. 

This makes it more difficult for agribusinesses and SMEs in water-intensive industries to operate. Many rural towns are experiencing economic decline as SMEs that formerly thrived on agriculture are forced to close or relocate. 

Furthermore, galamsey activity hinders formal investment in areas where it is widespread. 

Businesses are less likely to invest in communities where environmental degradation poses a long-term threat to their operations.

Addressing the tension: 

A balanced approach

• Government Regulation and Enforcement: To combat unlawful mining, the government should enforce stronger rules and provide alternative employment options in impacted communities. 

This could include growing the formal mining sector, establishing sustainable mining procedures, and supporting environmentally friendly enterprises like eco-tourism and renewable energy.  

• Support for SMEs: To encourage the long-term growth of SMEs, the government should prioritise investments in education and vocational training programmes that provide persons with skills other than mining. 

This would allow them to participate in sustainable enterprises that promote national economic progress.

Businesses could also contribute by providing mentorship and apprenticeship programmes that help former galamsey workers transition into formal employment.

• Corporate Social Responsibility (CSR) Initiatives: Larger corporations, particularly those in the mining industry, should be encouraged to create CSR initiatives that benefit local communities by repairing land harmed by galamsey and offering financial or technical assistance to SMEs. 

CSR projects could also focus on infrastructure development such as water treatment plants, to help reduce the effects of mining contamination.

• Public awareness campaigns: Businesses, in collaboration with the government and non-governmental organisations (NGOs), should fund public awareness programmes that emphasise the long-term economic and environmental repercussions of galamsey. 

Education on sustainable alternatives and the need of maintaining natural resources for future generations is critical for influencing community attitudes towards unlawful mining.

• Incentivising sustainable industries: Offering financial incentives and tax advantages to organisations and individuals involved in sustainable industries such as green technology, organic farming, and eco-friendly construction can help to shift the focus away from illicit mining.

Conclusion

The conflict between galamsey as a source of short-term employment and its long-term damage to SMEs and economic stability poses a significant dilemma for Ghana. 

While galamsey creates important jobs, particularly in rural regions, its environmental and economic implications endanger the future of SMEs and the overall health of the national economy. 

Addressing this issue demands a balanced strategy in which the government and businesses work together to provide alternative employment options, assist SMEs and promote sustainable development. 

Ghana can manage the complexities of this issue while meeting both immediate job requirements and long-term economic stability through the implementation of the appropriate policies and initiatives.

The writer is Lecturer/SME Industry Coach, Coordinator (MBA Impact Entrepreneurship and Innovation), University of Professional Studies Accra

ayiku.andrews@upsamail.edu.gh
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