Private governance: A study of sub-Saharan African gold mining

This thesis examines the role of private governance in sub-Saharan Africa’s largest gold producing countries. It seeks to provide an explanation for the role firms play in governing the gold mining sector in Ghana, South Africa and Tanzania. Furthermore, it seeks to illuminate the reasons why gold mining firms pursue self-regulation, beyond what is required by the state. The thesis begins with a summary of the resource curse literature, which suggests that countries rich in minerals (such as gold) are more likely to suffer slower economic growth and poorer development, when compared with their non-resource rich peers. It is from this scholarship that the thesis departs, suggesting that instead of solely focusing on the state, scholars of the underdevelopment in mineral rich states must consider the role of business in developing what is known as private governance. After advancing a classification system for private governance in the gold mining sector this research presents new empirical evidence in the form of analysis of company reporting and elite interviews with gold mining firm executives and representatives of industry associations. Using evidence gathered from interviews with mining executives, and company reports it is shown that firms do play a significant role in developing the rules and regulations that govern Africa’s gold mining industries. Large firms, with multiple operating jurisdictions are shown to be first-movers in engendering private governance, doing so in order to control the regulatory direction of their industry, but also to enhance their power vis-à-vis the state. This finding is elaborated on through the analysis of the elite interviews, where it is argued that gold mining firms with significant private authority rely on discursive power to develop private governance initiatives. Once these firms are seen as legitimate rule makers, they are able to effectively share sovereignty with sub-Saharan African governments.