IDEAS home Printed from https://ideas.repec.org/a/spr/endesu/v27y2025i3d10.1007_s10668-023-04205-w.html
   My bibliography  Save this article

Balancing economic development, social responsibility, and environmental conservation through financial assurance programs in sub-Saharan Africa’s mining industry

Author

Listed:
  • Davies Wambwa

    (The Copperbelt University School of Mines and Mineral Sciences)

  • Jhonnah Mundike

    (The Copperbelt University School of Mines and Mineral Sciences)

  • Brian Chirambo

    (The Copperbelt University School of Mines and Mineral Sciences)

Abstract

Financial assurance is pivotal in promoting responsible mining practices and ensuring sustainable mine closure in sub-Saharan Africa. The study evaluates the role of financial assurance programs in balancing economic development, social responsibility, and environmental conservation in South Africa, Zambia, Ghana, and Kenya. In this study, we utilized Levy and Ellis’ systematic approach to conduct a literature review. The study examines the regulatory frameworks, implementation guidelines, and problems associated with poor implementation of financial assurance programs and recommendations. It highlights the importance of public involvement, regular reviews, and compliance with legislation in enhancing the effectiveness of financial assurance. The research also explores recommendations, such as collaboration with international financial institutions and adopting standardized methodologies, to strengthen financial assurance systems and promote responsible practices and environmental conservation. By addressing the problems associated with financial assurance, countries in sub-Saharan Africa can advance toward sustainable mining and ensure the protection of the environment and the well-being of local communities.

Suggested Citation

  • Davies Wambwa & Jhonnah Mundike & Brian Chirambo, 2025. "Balancing economic development, social responsibility, and environmental conservation through financial assurance programs in sub-Saharan Africa’s mining industry," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 27(3), pages 5869-5892, March.
    • Handle: RePEc:spr:endesu:v:27:y:2025:i:3:d:10.1007_s10668-023-04205-w
    DOI: 10.1007/s10668-023-04205-w
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s10668-023-04205-w
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s10668-023-04205-w?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Aguirre Unceta, Rafael, 2021. "The economic and social impact of mining-resources exploitation in Zambia," Resources Policy, Elsevier, vol. 74(C).
    2. Shi, Junguo & Liu, Yang & Sadowski, Bert M. & Alemzero, David & Dou, Shanshan & Sun, Huaping & Naseem, Sobia, 2023. "The role of economic growth and governance on mineral rents in main critical minerals countries," Resources Policy, Elsevier, vol. 83(C).
    3. repec:imf:imfdep:2021/022 is not listed on IDEAS
    4. Takam Tiamgne, Xavier & Kalaba, Felix K. & Nyirenda, Vincent R., 2022. "Mining and socio-ecological systems: A systematic review of Sub-Saharan Africa," Resources Policy, Elsevier, vol. 78(C).
    5. Dominic S.B. Soh & Nonna Martinov-Bennie, 2015. "Internal auditors’ perceptions of their role in environmental, social and governance assurance and consulting," Managerial Auditing Journal, Emerald Group Publishing Limited, vol. 30(1), pages 80-111, January.
    6. Wilson, Sigismond A., 2022. "Measuring the effectiveness of corporate social responsibility initiatives in diamond mining areas of Sierra Leone," Resources Policy, Elsevier, vol. 77(C).
    7. Peck, Philip & Sinding, Knud, 2009. "Financial assurance and mine closure: Stakeholder expectations and effects on operating decisions," Resources Policy, Elsevier, vol. 34(4), pages 227-233, December.
    8. Kotsadam, Andreas & Tolonen, Anja, 2016. "African Mining, Gender, and Local Employment," World Development, Elsevier, vol. 83(C), pages 325-339.
    9. repec:ocp:rpaper:pp-2110 is not listed on IDEAS
    10. Chomba Kolala & Bridget Bwalya Umar, 2019. "National benefits, local costs? Local residents' views on environmental and social effects of large‐scale mining in Chingola, Zambia," Natural Resources Forum, Blackwell Publishing, vol. 43(4), pages 205-217, November.
    11. Ferreira, Doneivan & Suslick, Saul & Farley, Joshua & Costanza, Robert & Krivov, Sergey, 2004. "A decision model for financial assurance instruments in the upstream petroleum sector," Energy Policy, Elsevier, vol. 32(10), pages 1173-1184, July.
    12. Heledd Jenkins & Natalia Yakovleva, 2006. "Corporate social responsibility in the mining industry: Exploring trends in social and environmental disclosure," Post-Print hal-04702702, HAL.
    13. Lordan-Perret, Rebecca & Sloan, Robert D. & Rosner, Robert, 2021. "Decommissioning the U.S. nuclear fleet: Financial assurance, corporate structures, and bankruptcy," Energy Policy, Elsevier, vol. 154(C).
    14. Sascha Kraus & Raj V. Mahto & Steven T. Walsh, 2023. "The importance of literature reviews in small business and entrepreneurship research," Journal of Small Business Management, Taylor & Francis Journals, vol. 61(3), pages 1095-1106, May.
    15. Eric Twum, 2013. "Barriers To The Benefits, Efficient And Effective Regulation Of Environmental Financial Assurance Policy In Developing Countries: Case Study Of Ghana," Journal of Environmental Assessment Policy and Management (JEAPM), World Scientific Publishing Co. Pte. Ltd., vol. 15(03), pages 1-23.
    16. repec:eme:maj000:maj-08-2014-1075 is not listed on IDEAS
    17. Dominic S.B. Soh & Nonna Martinov-Bennie, 2015. "Internal auditors’ perceptions of their role in environmental, social and governance assurance and consulting," Managerial Auditing Journal, Emerald Group Publishing, vol. 30(1), pages 80-111, January.
    18. repec:imf:imfdps:2021/022 is not listed on IDEAS
    19. Masilu Daniel Masekameni & Dingani Moyo & Norman Khoza & Chimwemwe Chamdimba, 2020. "Accessing Occupational Health Services in the Southern African Development Community Region," IJERPH, MDPI, vol. 17(18), pages 1-11, September.
    20. J. Wren Tracy & Amy Guo & Kaida Liang & Jamie Bartram & Michael Fisher, 2020. "Sources of and Solutions to Toxic Metal and Metalloid Contamination in Small Rural Drinking Water Systems: A Rapid Review," IJERPH, MDPI, vol. 17(19), pages 1-18, September.
    21. Zandariya, Bayanmunkh, 2022. "Improving the policy framework for financial assurance for mine closure in Mongolia," Resources Policy, Elsevier, vol. 77(C).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Sara Aghakazemjourabbaf & Margaret Insley, 2018. "Optimal timing of harzardous waste clean-up under an environmental bond an a strict liability rule," Working Papers 1803, University of Waterloo, Department of Economics, revised 06 Jan 2018.
    2. Aghakazemjourabbaf, Sara & Insley, Margaret, 2021. "Leaving your tailings behind: Environmental bonds, bankruptcy and waste cleanup," Resource and Energy Economics, Elsevier, vol. 65(C).
    3. Bennett, Patrick & Ravetti, Chiara & Wong, Po Yin, 2021. "Losing in a boom: Long-term consequences of a local economic shock for female labour market outcomes," Labour Economics, Elsevier, vol. 73(C).
    4. Stefano D’Angelo & Angelo Cavallo & Antonio Ghezzi & Francesco Di Lorenzo, 2024. "Understanding corporate entrepreneurship in the digital age: a review and research agenda," Review of Managerial Science, Springer, vol. 18(12), pages 3719-3774, December.
    5. Stephan E. Maurer & Andrei V. Potlogea, 2021. "Male‐biased Demand Shocks and Women's Labour Force Participation: Evidence from Large Oil Field Discoveries," Economica, London School of Economics and Political Science, vol. 88(349), pages 167-188, January.
    6. Cao, Xintong & Sharmina, Maria & Cuéllar-Franca, Rosa M., 2024. "Sourcing cobalt in the Democratic Republic of the Congo for a responsible net-zero transition: Incentives, risks and stakeholders," Resources Policy, Elsevier, vol. 95(C).
    7. de Haas, Ralph & Poelhekke, Steven, 2016. "Mining Matters : Natural Resource Extraction and Local Business Constraints," Discussion Paper 2016-034, Tilburg University, Center for Economic Research.
    8. Pokorny, Benno & von Lübke, Christian & Dayamba, Sidzabda Djibril & Dickow, Helga, 2019. "All the gold for nothing? Impacts of mining on rural livelihoods in Northern Burkina Faso," World Development, Elsevier, vol. 119(C), pages 23-39.
    9. Akwasi Ampofo, 2021. "Oil at work: natural resource effects on household well-being in Ghana," Empirical Economics, Springer, vol. 60(2), pages 1013-1058, February.
    10. Snyder, Brian & Kaiser, Mark J., 2009. "Offshore wind power in the US: Regulatory issues and models for regulation," Energy Policy, Elsevier, vol. 37(11), pages 4442-4453, November.
    11. Jubril Animashaun & Ada Wossink, 2020. "Patriarchy, Pandemics and the Gendered Resource Curse Thesis: Evidence from Petroleum Geology," Economics Discussion Paper Series 2006, Economics, The University of Manchester.
    12. Poignant, Adrian, 2023. "Small-scale mining and agriculture: Evidence from northwestern Tanzania," Resources Policy, Elsevier, vol. 83(C).
    13. Li, Aimin & Zhou, Shuyu, 2024. "Role of mineral-based industrialization in promoting economic growth: Implications for achieving environmental sustainability through financial management," Resources Policy, Elsevier, vol. 92(C).
    14. Konte, Maty & Vincent, Rose Camille, 2021. "Mining and quality of public services: The role of local governance and decentralization," World Development, Elsevier, vol. 140(C).
    15. Axbard, Sebastian & Benshaul-Tolonen, Anja & Poulsen, Jonas, 2021. "Natural resource wealth and crime: The role of international price shocks and public policy," Journal of Environmental Economics and Management, Elsevier, vol. 110(C).
    16. Patrick Velte & Martin Stawinoga, 2017. "Empirical research on corporate social responsibility assurance (CSRA): A literature review," Journal of Business Economics, Springer, vol. 87(8), pages 1017-1066, November.
    17. Bruno Ibekilo & Chukwunonso Ekesiobi & Precious Muhammed Emmanuel, 2023. "Heterogeneous assessment of urbanisation, energy consumption and environmental pollution in Africa: the role of regulatory quality," Economic Change and Restructuring, Springer, vol. 56(6), pages 4421-4444, December.
    18. Eva-Maria Egger & Michael Keller & Jorge Benjamim Mouco, 2025. "The Socio-Economic Impact of Coal Mining in Mozambique," Journal of African Economies, Centre for the Study of African Economies, vol. 34(2), pages 161-183.
    19. Bazillier, Remi & Girard, Victoire, 2020. "The gold digger and the machine. Evidence on the distributive effect of the artisanal and industrial gold rushes in Burkina Faso," Journal of Development Economics, Elsevier, vol. 143(C).
    20. Wegenast, Tim & Krauser, Mario & Strüver, Georg & Giesen, Juliane, 2019. "At Africa’s expense? Disaggregating the employment effects of Chinese mining operations in sub-Saharan Africa," World Development, Elsevier, vol. 118(C), pages 39-51.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:endesu:v:27:y:2025:i:3:d:10.1007_s10668-023-04205-w. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.