Domestic
BFM to establish four gold collection points across Madagascar
Banky Foiben'i Madagasikara (BFM) plans to soon establish gold collection points in Ambilobe, Maevatanana, Mananjary and Miandrivazo, four zones with high gold potential. The operation aims to strengthen the country's gold reserves while promoting formalization and better traceability in the sector. These new facilities should primarily bring official channels closer to artisanal gold miners. By facilitating access to formal collection points in production areas, BFM intends to better regulate gold commercialization and limit reliance on informal circuits. The system will also strengthen quality control and purity verification of collected metal, in line with current standards. This initiative is part of a policy launched in 2023 by the central bank to better integrate monetary gold into Madagascar's foreign exchange reserves. The challenge now is to act from the start of the chain: from gold extracted by artisans to its collection and integration into official circuits. Better identification of metal origin should notably make transactions more transparent. The project also has social and financial dimensions. BFM wishes to support formalization of artisanal miners, develop their access to banking services and facilitate financing of cleaner extraction technologies. Guarantee mechanisms and financial products adapted to artisanal mining realities are also being considered. This approach aligns with commitments made under planetGOLD Madagascar. In April, BFM signed a partnership with the Ministry of Mines and the United Nations Industrial Development Organization (UNIDO), notably aiming to gradually eliminate mercury use in artisanal gold mining. This substance poses significant health and environmental risks. Another agreement with the Ministry of Environment and Sustainable Development focuses on strengthening corporate social responsibility and promoting more sustainable environmental and social practices. The economic stakes are significant: artisanal and small-scale gold mining represents approximately 600,000 direct jobs in Madagascar. With the four future collection points, BFM aims to better capture national production, secure its pathway and convert more mining gold into monetary gold for the country's reserves.
Source: Madagascar Tribune