Determinants of formalised mineral market outlet choice decision of artisanal and small-scale gold miners in Geita, Tanzania

Abstract

Formalisation of the mineral market has been a major concern for researchers and policymakers in mineral-rich developing countries, aimed at maximising the micro- and macroeconomic contributions of artisanal and small-scale gold mining. This study examines determinants of choice decisions for formalised mineral market outlets for artisanal and small-scale gold miners in Geita, Tanzania. The study involved 384 miners sampled by multistage technique. Data were collected by using a structured questionnaire. Four mineral market choices; informal buyers, licensed brokers, mineral dealers, and smelters/refineries were considered in this study. The correlation analysis was used to check the interdependence among different pairs of market options. A multivariate probit model (MVP) was used to examine determinants for market outlet choice decisions. The correlation results show complementarity and substitutability among pairs of mineral market outlets. The most preferred market outlets mix was informal buyers and licensed brokers. The MVP model results show that age, gender, household size, experience, smartphone, cooperative membership, bank credit access, and mineral business training are significant determinants for mineral market outlet choice decisions. Policy initiatives supporting cooperatives, credit access, modern technology, training, and affordable communication devices are essential for adopting formal mineral markets, improving livelihoods, and increasing government mineral tax revenues.