Income Diversification, Social Capital, and Sustainable Livelihoods in Ghanaian Mining Communities

Abstract

Income diversification is an essential strategy for managing economic and environmental shocks and reducing rural poverty in developing countries and as such, the study examined the income diversification, social capital, and sustainable livelihoods in Ghanaian mining communities. Guided by the explanatory research design, the study utilised the quantitative research approach to measuring and also employed the Partial Least Squares Structural Equation Model (PLS-SEM version 3.0) for data analysis as demanded by the specific objectives. The findings suggest that individuals in mining communities in Ghana employ a variety of income diversification strategies, including entrepreneurship, agricultural activities, remittances from family members working elsewhere, ecotourism and community-based tourism, micro or small-scale businesses, to mitigate the risks associated with reliance on a single income source from mining activities. Additionally, the study notes that social capital alone has an insignificant impact on sustainable livelihoods, and social capital endowment exhibits a negative and statistically significant influence. In light of the identified constraints, the study recommends targeted interventions. Improving market access and financial services, providing training and technical assistance, and advocating for government support emerge as critical strategies to promote income diversification and enhance the overall livelihoods of community members.