Guideline on business models meeting ESG objectives

This report explores sustainable business models for artisanal and small-scale mining (ASM) in Africa aimed at addressing environmental, social, and governance (ESG) challenges while improving mineral supply chains between Africa and Europe.

Although ASM plays a vital economic role, it faces significant issues such as informality, poor working conditions, environmental degradation, and weak governance. Formalisation should be viewed as a long-term objective, not as starting point, as many miners prefer informality due to socio-economic constraints. To be effective, sustainable business models must offer economic incentives, including delineated ASM zones, cooperatives, partnerships with large-scale miners, and value chain diversification.

Access to financing remains a barrier, which could be mitigated through mobile banking, equipment leasing, and collective collateral mechanisms. ESG improvements can be encouraged through price premiums, traceability schemes, and targeted capacity building. Tools such as the Triple Layer Business Model Canvas help stakeholders visualise sustainability challenges.

Governments have a key role in creating supportive policies, infrastructure, and formalisation pathways. EU buyers may need to commit to paying premiums and engaging long-term to drive real ESG improvements. Ultimately, transforming ASM requires coordinated, market-driven, and policy-supported efforts involving miners, governments, companies, and development partners.

Read the full report here.