By The Respondent Reporter
The Deputy Governor of the Bank of Tanzania (BoT), Dr. Yamungu Kayandabila, has urged financial institutions and stakeholders in the mining sector to develop innovative financial systems that will enable small and medium-scale miners to easily access capital, thereby promoting growth in this vital sector of the country’s economy.
Speaking at a mining sector stakeholders’ meeting held on May 22, 2025, at the Hyatt Regency Hotel in Dar es Salaam, organized by the African Export-Import Bank (Afreximbank) in partnership with BoT, Dr. Kayandabila noted that although gold accounts for more than 90% of mineral exports, small-scale miners continue to face significant financial challenges that hinder the expansion of their operations.
“These challenges arise from informal operations, lack of financial records, and high geological risks associated with mining projects, making these ventures risky from the perspective of financial institutions,” Dr. Kayandabila explained.
He added that many financial institutions view small-scale mining projects as early-stage enterprises lacking a proven track record or reliable official documentation. As a result, even ongoing and successful projects struggle to secure financing.
“Additionally, many miners fail to meet collateral requirements or achieve the required levels of transparency, which further limits their access to financial services,” he said.
Dr. Kayandabila commended Afreximbank for its financial innovations, highlighting the institution’s important role in bridging the gap left by commercial banks by offering project financing, loan guarantees, and alternative capital-raising mechanisms.
Meanwhile, Afreximbank’s Director of Client Relations, Mr. Eric Monchu Intong, emphasized the bank’s commitment to supporting the mining sector through a dual strategy: improving access to financing for the purchase of mining equipment and strengthening local capacity building.
He also underscored the importance of adding value to minerals before export, such as through domestic mineral processing, stating that this approach will create jobs, reduce poverty, and generate sustainable economic benefits.