This timely intervention will also empower small-scale miners by helping them cover necessary operational costs.
DODOMA. The Ministry of Minerals and CRDB Bank Plc have signed a Memorandum of Understanding (MoU) to launch a robust loan program for small-scale miners.
The initiative will facilitate the purchase of Carbon-in-Pulp (CIP) mineral processing machines and other essential equipment.
This timely intervention will also empower miners by helping them cover necessary operational costs.
During a roundtable meeting to discuss cooperation between CRDB Bank and the Mining Commission on providing loans to small-scale miners, the Minister for Minerals, Mr. Anthony Mavunde, stated that eligible miners with valid licenses will now be able to apply for and receive loans from the bank.
He emphasized that this support will enable miners to boost production and productivity, thereby increasing their contribution to government revenue.
One of the beneficiaries highlighted by Mr. Mavunde is the Songwe-based Saza Gold Family.
“CRDB Bank is finalizing the process to provide the group with a 30bn/- loan for the purchase of a gold processing plant and mining equipment,” he revealed.
The Saza Gold Family operates in the Saza area of the Songwe Region.
“During President Samia Suluhu Hassan’s visit to Songwe, a group of small-scale miners, through Songwe Member of Parliament Mr. Philipo Mulugo, requested a mining license. The President directed that the group be granted the license previously held by BAFEX Company,” the Minister explained.
Minister Mavunde further urged the Mining Commission and CRDB Bank to expedite the implementation of the MoU so that loan disbursement can begin as soon as possible.
He stressed the importance of the loan scheme for small-scale miners, noting that it will increase production and automatically boost revenue collection, especially since the sector currently contributes at least 40 percent of mining revenues.
The Minister also called on financial institutions across the country to trust small-scale miners and create a credit-friendly environment, given the sector’s vast mineral wealth.
“I urge financial institutions to trust miners. They already lend each other up to 5bn/- based on mutual trust. If banks create a supportive lending environment, they can gain significant profits from the mining sector and grow their capital,” he said.
Speaking at the meeting, Songwe MP Mr. Philipo Mulugo praised Minister Mavunde for championing small-scale miners and connecting them with financial institutions for affordable loans to expand their operations.
The Deputy Minister for Minerals, Dr. Steven Kiruswa, thanked CRDB Bank for the initiative and encouraged the bank to continue educating small-scale miners on financial management so they can fully benefit from the loan program.
Similarly, the Ministry’s Permanent Secretary, Eng. Yahya Samamba, advised CRDB Bank to maintain a favorable lending environment to ensure more miners can access loans.
On behalf of the Saza Gold Family, Chairman Mr. Simon Ndaki expressed gratitude to the Ministry and the bank.
“We are very thankful to the Minister and his team for granting us a mining license and guiding us through the initial stages of the loan process. Our group has 264 members,” he said.
He added that with modern equipment, small-scale miners will be able to increase production and productivity, thereby doubling their revenue contribution to the state.
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