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sharing in governance of extractive industries

What is market systems development and how can it be applied to mining?

Never before has market systems development (MSD) been applied to the mining sector, specifically artisanal and small-scale mining (ASM). This is low-tech, labour-intensive mineral extraction and processing.

The Sustainable Development of Mining in Rwanda (SDMR) programme, however, is working to change this by applying MSD to the mining sector in Rwanda, which is almost entirely comprised of ASM activities.

What is MSD? It is a framework for understanding and analysing how economic systems work, in order to then improve the ways in which they serve the poor. In contrast to traditional forms of development assistance which tend to focus on the state and public-sector programmes, the MSD approach harnesses the power of markets and the private sector by identifying gaps and failures.

Interventions are then designed and implemented. For example, helping a mine service company understand and meet the needs of small-scale mine operators through low-cost and accessible equipment and processing services, or by building the capacity of advocacy organisations to effectively and positively engage policymakers through dialogue. Crucially, interventions in MSD programmes must be pro-poor, facilitative, sustainable, systemic, and scalable. 

By using the MSD framework, SDMR is therefore working to catalyse the formalisation and professionalisation of ASM in the country. But what has been learnt from applying this novel approach to date?

  • Find out more about lessons from applying MSD to ASM in this short blog on BeamExchange.
  • For a more detailed overview, and to understand how the approach may be replicated in other countries see this policy brief on the SDMR website.

Follow SDMR on Twitter: @RwandaSDMR

Website: http://sdmr.co.rw/

Get in touch: Info@sdmr.co.rw

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