Accounting for informalization in Africa's extractive industry: Evidence from Ghana's small-scale gold mining sector during the colonial period

Abstract

In this paper, we draw on the accountability and institutional theories to explicate the informalized state of Ghana's small-scale gold mining sector as an exemplar of informalization of the extractive industry in Africa during the colonial period. We present a critical and historical perspective on the role of colonial subjugation that took the form of discriminatory policies and lack of accountability, in laying the foundations for the current challenges of continuous informalization of the indigenous gold mining sector and its implications on livelihoods, the economy and the environment in Ghana. We analyzed archival data on the mining industry in Ghana, consisting of official correspondences between colonial bureaucrats in Britain and Ghana, as well as colonial policies on mining, interpreted through the lenses of institutional theory. Specifically, we used records comprising letters, mineral policies, mineral output, and labor relations in the Gold Coast during the colonial period as well as minutes of meetings held by those governing mining enterprises that operated in Ghana before 1957. We also drew on periodic reports of the Ghana Chamber of Mines and their member enterprises, Government of Ghana white papers, parliamentary records among others. We found that the colonial authority, as the new institutional power with vested interest in the extractive industry, adopted discriminatory policies that banned small-scale gold mining by indigenous population in Ghana, marginalizing the sector's operation to the advantage of foreign large-scale gold miners. We demonstrate that the control of mineral resources by the colonial authority under new ownership structures disenfranchised the indigenous population and their right to the mineral resources of the Gold Coast. We argue that this institutionalized discriminatory policy, and the resulting lack of accountability is largely responsible for the ongoing informalization of Ghana's small-scale gold mining sector. This paper contributes to the corpus of critical and historical scholarship that investigates the role of racialization and accountability during colonial period, but with notable distinction that departs from specific professional or disciplinary perspectives. Instead, it focuses on the colonial subjugation and exploitation of the small-scale gold mining sector and its ongoing informalization that traces its roots to the era of British colonial rule in Ghana. It reiterates the need for accountability for these historical inequalities affecting the small-scale mining operators, to facilitate the sector's formalization and to effectively control and manage the myriads of negative impacts associated with it.