Summary
* CRDB Bank and Mining Commission sign historic pact
* Special agreement unlocks capital, technology, and growth opportunities for small-scale miners
* Songwe Gold Family Group secures record 50bn/- loan
DAR ES SALAAM: THE government of Tanzania has taken a major step toward transforming the small-scale mining sector by enhancing miners’ access to financial services.
In a strategic move led by the Ministry of Minerals through the Mining Commission, a special agreement was signed with CRDB Bank to provide tailored financial solutions to small-scale miners.
As part of the finalized agreement, CRDB Bank will extend a 50bn/- capital loan to the Songwe Gold Family Group, a patriotic move hailed as a bold commitment by Tanzania’s leading bank.
Speaking at the signing ceremony held at Johari Rotana Hotel in the Tanzania’s port city of Dar es Salaam, the Minister of Minerals, Mr. Anthony Mavunde credited President Dr. Samia Suluhu Hassan for her visionary leadership, which continues to reshape the mining sector and attract investment.
Minister Anthony Mavunde
To further strengthen the sector, Mr. Mavunde informed that the government is finalizing the establishment of a Guarantee Fund to facilitate lending to small-scale miners.
The fund aims to lower barriers to capital and accelerate the formalization of mining activities.
He described the initiative as part of the government’s ongoing commitment to creating an enabling environment for small-scale miners, enhancing operations, boosting trade, improving efficiency, and increasing the sector’s contribution to GDP.
“We commend CRDB for venturing into the field, witnessing mining operations firsthand, and making decisions based on accurate, on-ground insights rather than hearsay. This understanding will boost investment productivity, sectoral growth, and national revenue,” Mr. Mavunde expressed.
The Minister observed that Tanzania is one of the few African nations that legally recognizes small-scale miners. He noted ongoing efforts to issue mining licenses, revoke undeveloped prospecting licenses, allocate mining areas, and foster an environment where small-scale miners can increase production and economic contribution.
CRDB Bank Lauds Innovative, Collateral-Friendly System
CRDB Bank CEO Dr. Abdulmajid Nsekela described the initiative as historic for both the bank and the mining sector, introducing a modern and collaborative system designed around the realities of small-scale miners—who have driven the fastest-growing sector for five consecutive years.
Dr. Abdulmajid Nsekela
“The key challenges for miners have been access to capital, technology, and professional advice. Strengthening this sector is foundational to national revenue. This is a strategic national plan that includes financial education, operational formalization, and increasing the sector’s GDP contribution,” Dr. Nsekela stated.
He revealed that CRDB has already disbursed 186bn/- to the mining sector, with 136bn/- directed to large-scale miners and 50bn/- to small-scale miners.
“A major innovation in this scheme is the flexibility of collateral. It does not rely solely on immovable assets. Instead, valid mining licenses, gold trading licenses, gold reserves, and special contracts can serve as collateral,” Dr. Nsekela explained.
Government and Private Sector Hail Collaboration
The Deputy Permanent Secretary of the Ministry of Minerals, Mr. Msafiri Mbibo, praised Minister Mavunde for driving these reforms and encouraging financial institutions to invest in mining.
Echoing this sentiment, CRDB Board Vice Chairman Dr. Donald Mmari said that the mining sector stimulates and links with multiple industries and is a priority under Tanzania’s National Development Vision 2050.
He added that the agreement will foster strategic transformation and stronger public-private cooperation.
Miners’ Representative Applauds New Chapter
Speaking on behalf of small-scale miners, Mr. John Bina, President of the Federation of Miner’s Association of Tanzania (FEMATA) expressed gratitude to President Samia for making this milestone possible.
He emphasized that the agreement answers a long-standing need and opens a new chapter of growth and formalization for small-scale mining in Tanzania.
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