In the name of God the compassionate, the merciful
Illegal mining, or what we popularly refer to as galamsey in Ghana, has led to severe water pollution due to the use of harmful chemicals like mercury and cyanide, which contaminate rivers and streams.
This pollution endangers aquatic life and poses significant health risks to every community that relies on these water sources for drinking and agriculture and the country as a whole.
Using Islamic finance to combat illegal mining (galamsey) and prevent water pollution in Ghana involves a combination of ethical investment strategies, community engagement, and sustainable practices. Here are some specific approaches:
Ethical Financing for Legal Operations: Establish microfinance options based on Islamic principles, such as qardhasan (interest-free loans), to support small-scale, legal miners. This can help them transition to sustainable practices without the financial burdens associated with high-interest loans.
Profit-Sharing Arrangements: Encourage profit-sharing models (mudarabah) where investors partner with legal miners. This incentivizes sustainable mining operations, ensuring that profits are linked to environmentally friendly practices that protect water bodies.
Investment in Clean Technologies: Create funds focusing on environmentally friendly mining technologies. These can be financed through sukuk (Islamic bonds) to support projects that minimize water pollution and rehabilitate damaged ecosystems.
Community Development Initiatives: Use zakat (charitable giving) to fund community projects that improve local livelihoods without relying on illegal mining. This can include agricultural programs, vocational training, and clean water access, which reduce the community’s dependence on galamsey.
Public Awareness Campaigns: Fund educational initiatives about the harmful effects of galamsey on water bodies through partnerships with local NGOs. Informing communities about the long-term consequences can help shift attitudes towards illegal mining.
Regulatory Collaboration: Islamic financial institutions can collaborate with the government to enforce mining regulations and provide financial incentives for compliance. This could involve offering favourable financing terms to miners who adhere to sustainable practices.
Restoration Projects: Establish funds dedicated to environmental restoration. These can be financed through community-based investments that focus on reclaiming and rehabilitating polluted water bodies, aligning with Islamic values of stewardship.
Social Impact Bonds: Explore the use of social impact bonds to fund initiatives that directly address the consequences of galamsey, including water pollution. Returns on these bonds could be linked to the success of projects in restoring water quality.
By implementing these strategies, Islamic finance can help create a more sustainable approach to mining in Ghana, reducing the negative impacts of illegal mining on water bodies and promoting ethical and responsible economic development. And Allah knows best! “Praise be to Allah in whose favour good deeds are accomplished” (ibn Majah 38030)
The writer is the Ghana representative of the Alhuda Centre of Islamic Banking and Economics, Dubai, and Islamic Banking and Finance patron and advocate in Ghana. He holds a BSc. in Islamic banking, economics, and finance from the International Open University a BA. in Political Science from the University of Ghana, and a Diploma in Education from the University of Winneba. We would want to collaborate and partner with any persons or organizations who are willing to explore this field in Ghana and beyond.
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