The government of Tanzania has announced plans to establish a bank designed for artisans and small-scale miners. Dr Philip Mpango, the country’s Vice President confirmed and said the move aims to boost their investments by channeling a dedicated line of credit.
“While the government is working to bring in Mineral Bank, all the industry players, including banks, artisans and small-scale miners, should work hand in hand with the State Mining Corporation (STAMICO) to facilitate loans for miners,” said Dr Mpango.
Financial institution
The bank will be a financial institution that is specialised in providing loans and other funding services to groups of small-scale miners. This follows concerns raised by groups of artisans that they are unable to get credit to expand their businesses. The Federation of Miners Associations of Tanzania (Femata) said they need loans to expand their businesses and also to acquire mining equipment.
“Capital is still the number one challenge that artisans and small-scale miners face. Most banks are still hesitant to provide loans to us. They claim ‘hatukopesheki’ (we are too risky),” said John Bina, president of Femata.
The miners’ lobby said the seed capital can be raised from contributions from members as well as a percentage of Corporate Social Responsibility (CSR) budgets by larger mining firms, royalties paid to the government, and a share from the Bank of Tanzania (BoT).
“This will help build a strong base for small-scale miners and push them to become middle and large mining firms in a short while,” said Bina
