Dr. Frank Boateng, a lecturer at the University of Mines and Technology (UMaT), has proposed the creation of a specialised financial institution dedicated to the needs of Ghana’s artisanal and small-scale mining (ASM) sector.

He believes that such an initiative could address the chronic lack of capital that continues to push many licensed operators into the hands of foreign financiers, particularly from China.

“If we have products that serve the needs of the sector, people will not go looking for foreign financiers.
“We can have our own people doing what is right without ravaging our forests and lands.”
Dr. Frank Boateng, Lecturer at UMaT

Dr. Boateng made the call during his inaugural Imani Fellowship Lecture on the theme “Demystifying the Illegal Mining Conundrum with Existing State Structures.”

He argued that the absence of tailor-made financial products for the ASM sector has forced operators to rely on unregulated external funding, often at great cost to Ghana’s environment and governance structures.

The proposed Artisanal Small-Scale Mining Bank, according to Dr. Boateng, would not only provide credit but also supply equipment and related facilities on flexible terms.

He suggested that repayment could be structured in either gold or cash over time, making financing more practical for miners who often struggle with liquidity.

Such an institution, he noted, could play a pivotal role in reducing the dependency on foreign partners who sometimes exploit regulatory gaps, causing significant environmental harm and undermining Ghana’s mining laws.

Dr. Boateng challenged existing banks and financial institutions to consider creating tailored products for artisanal and small-scale miners.

He stressed that the sector, if given proper financial support, could drive sustainable mining practices, boost government revenue, and provide more structured economic opportunities for local communities.

“What we need is innovation in the way we think about financing the mining sector.
“If local institutions step up with targeted products, we can keep the wealth of this industry within Ghana and still promote responsible mining.”
Dr. Frank Boateng, Lecturer at UMaT

Call for a Distinct Fiscal Regime

The UMaT lecturer also called on government to introduce a unique fiscal regime for the small-scale mining sector, stressing that current tax and capital allowance frameworks fail to reflect the realities of smaller operators.

He noted that while large-scale mining companies can spread costs over longer periods, small-scale miners operate with limited asset bases and require more flexible tax incentives.

He criticised the reduction of the capital allowance period from 10 years to five years, saying it placed undue financial pressure on small operators.

According to him, the Ghana Revenue Authority has itself acknowledged the need for reform, yet little progress has been made.

“The fiscal regime for ASM cannot mirror that of large-scale mining because the dynamics are fundamentally different. We must make adjustments if we are serious about formalising and supporting this sector.”
Dr. Frank Boateng, Lecturer at UMaT

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In addition to financing and tax reforms, Dr. Boateng called for the establishment of ASM support service centres at the district level in mining communities.

These centres, he suggested, could offer services such as equipment repairs, welding, and mechanical support while simultaneously creating employment for local residents.

He explained that by providing readily available technical assistance, miners would be able to operate more efficiently, reduce downtime, and adopt safer, more sustainable practices.

“The goal should be to build an ecosystem that allows small-scale miners to thrive within the law while protecting the environment. Support centres will be critical in achieving that balance.”
Dr. Frank Boateng, Lecturer at UMaT

Dr. Boateng concluded his lecture with a call for stakeholders to rethink old strategies and embrace new approaches to solving Ghana’s long-standing challenges in the small-scale mining sector.