Bridging Sustainable Development Gap in the Gold Mining Sector of Zimbabwe: A Conceptual Framework on the Role That Can Be Played by Microfinance Institutions

Abstract

Even though gold mining has both the positive and negative impacts on the environment, its negative impacts like depletion of natural resources, loss of grazing land and degradation of the environment tends to outweigh its positive contribution. This study was carried to see how microfinance institutions (MFIs) can use institutional force in compelling the gold mining sector to adhere to environmental management principles in Zimbabwe. The study explores the role that can be played by microfinance in promoting green goldmining in Zimbabwe. Green microfinance besides its traditional finance and social role also aims for the promotion of environmental management. Microfinance institutions play a critical role in promoting environmental sustainability, even though they are well misunderstood as the role they play on the ground requires a guideline. Therefore, to understand the role that can be played by microfinance institutions in promoting green gold mining this study advocate for a conceptual framework to act as a guide to microfinance institutions. The development of a conceptual framework for the role of microfinance institutions in bridging the sustainable development gap in the goldmining sector is the work's key contribution. Further work would include conducting in-depth interviews with key stakeholders in the Zimbabwean microfinance sector and gold mining sector to validate the framework.