Speaking in City of Mwanza during the launch of the Lake Zone Mining Club over the weekend, NMB’s Head of Business Banking, Alex Mgeni said so far, the bank has already issued loans worth more than 63bn/- to the group.
"Small-scale miners will be provided with equipment and machinery loans without security because the machines will be their collateral after making a down payment of 20 percent of the equipment's value," Mgeni said.
Speaking during the event, which brought together miners from Mwanza, Mara, Simiyu, Geita, Shinyanga and Kagera regions, President of Federation of Miners Associations of Tanzania (Femata), John Bina said the bank's decision to invest in small-scale mining will not only increase productivity, but also boost the group’s but also revenue to Treasury.
“Technology and capital are among the chronic challenges facing the mining sector, especially for the small-scale miners; NMB’s decision will help reduce the challenge of acquiring mining equipment by small scale miners,” said Bina who also stated that mining needs expertise and modern technology use.
Urging small-scale miners to dispel fears and misconceptions about bank loans, the Femata President assured financial institutions that there is a fortune in the mining sector which is doing great at global markets despite challenges being faced by the corona virus epidemic.
Addressing the miners and NMB officials, Mwanza Regional Commissioner, Engineer Robert Gabriel assured the bank of the government's willingness to work with financial institutions and other stakeholders to implement policies and strategies aimed to increase productivity in the mining sector.
"Mining sector’s contribution to the country’s gross domestic product has increased from 3.4 percent in 2015/16 fiscal year to 5.2 percent in the 2019/20; and it is projected to peak more than 10 percent by 2025,”said Engineer Gabriel.
He advised small-scale miners in the country to join forces to afford not only opening up medium and large mines, but also provide services in major international mines through a local content policy that directs that part of services be provided by local companies.