Dodoma
As part of a strategy to economically empower small-scale miners, the Ministry of Minerals has entered into an agreement with CRDB Bank under a special financing programme aimed at supporting small-scale miners through loans for the acquisition of mineral processing plants (CIP), mining equipment, and operational capital.
Speaking during a meeting to discuss proposed areas of cooperation between CRDB Bank and the Mining Commission on the provision of loans to small-scale miners, Minister of Minerals, Hon. Anthony Mavunde, said that through this agreement, licensed small-scale miners will be able to apply for and receive loans from the bank, thereby enhancing productivity and increasing their contribution to government revenue collection.
Explaining one of the beneficiaries of the programme, Minister Mavunde said the SAZA GOLD FAMILY group is among those set to benefit, noting that CRDB Bank is in the final stages of issuing a loan amounting to TZS 30 billion for the purchase of a gold processing plant and mining equipment for the group, which operates in the Saza area of Songwe Region.
He further explained that during a visit by the President of the United Republic of Tanzania, H.E. Dr. Samia Suluhu Hassan, to the Saza area, small-scale miners—through the Member of Parliament for Songwe Constituency, Hon. Philipo Mulugo—requested to be granted a mining license.
President Samia subsequently directed that the group be allocated a mining license that was previously owned by BAFEX Company.
Minister Mavunde said that as part of continued efforts to empower small-scale miners, the SAZA GOLD FAMILY group was granted the license and commenced mining operations, after which it applied for a loan to acquire a mineral processing plant and mining equipment. The loan processing began immediately through CRDB Bank.
In another development, Minister Mavunde directed the Mining Commission and CRDB Bank to finalize the Memorandum of Understanding (MoU) by Wednesday next week to ensure that loan disbursement procedures are completed promptly.
He highlighted the benefits of providing loans to small-scale miners, including increased production and a higher contribution to government revenue, noting that the sector currently contributes about 40 percent.
At the same time, Hon. Mavunde urged financial institutions in the country to have confidence in small-scale miners by creating a conducive lending environment, emphasizing that they possess significant mineral wealth.
“I call upon financial institutions to trust small-scale miners. Among themselves, they are able to lend each other up to TZS 5 billion based on trust alone. If you create favorable lending conditions and extend credit to them, you will gain substantial returns through the mining sector and grow your capital,” the Minister emphasized.
Meanwhile, the Member of Parliament for Songwe, Hon. Philipo Mulugo, commended Minister Mavunde for being a strong advocate for small-scale miners and for linking them with financial institutions to ensure they prosper through the mining sector.
“I highly commend Minister Mavunde for being at the forefront in fighting for small-scale miners—from access to mining licenses, linking them with financial institutions for loans, to resolving various challenges they face,” said Mulugo.
In another recommendation, he urged CRDB Bank to employ mining experts to enhance its understanding of the mining sector, a move that would facilitate easier loan approvals and the creation of a more favorable lending environment.
Deputy Minister for Minerals, Hon. Dr. Steven Kiruswa, also praised CRDB Bank for its willingness to provide loans to small-scale miners and encouraged the bank to continue offering financial education to miners to enhance their capacity to access credit.
Similarly, the Permanent Secretary of the Ministry of Minerals, Engineer Yahya Samamba, advised CRDB Bank to maintain favorable lending conditions by considering miners’ production history to improve their eligibility for loans.
Speaking at the same meeting, Chairman of Songwe Gold Family, Mr. Simon Ndaki, expressed gratitude to the Government for linking them with CRDB Bank and facilitating the initial stages of the loan application process.
“We sincerely thank the Minister of Minerals and his team for granting us the mining license and closely supervising all the initial stages of our loan application as a group with 264 members. We believe that through increased production using modern equipment, our contribution to government revenue collection will significantly increase,” said Ndaki.
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