CRDB, mining commission ink MoU to boost small-scale miners’ access to capital

The Minister for Minerals, Anthony Mavunde, who officiated at the event, described the MoU as a strategic intervention linking government policy reforms with structured financial support from the banking sector.

He said the mining sector now contributes 10 percent to the national Gross Domestic Product and accounts for more than 56 per cent of foreign exchange earnings, with annual mineral exports exceeding $5 billion.

“What we are witnessing today is a bridge between the Government’s vision and financial capital,” Mr Mavunde said, noting that the partnership would bring thousands of small-scale miners into the formal economy.

Under the MoU, CRDB Bank will implement a dedicated financial framework that recognises alternative forms of collateral directly linked to mining operations. For the first time in Tanzania’s banking sector, valid mining licences, gold sale agreements and stored gold in accredited refining facilities will be accepted as loan security.

CRDB Group chief executive officer Abdulmajid Nsekela said the agreement reflects a shift towards sector-specific financing that takes into account the operational realities of mining.

“This MoU lays the foundation for a comprehensive financial ecosystem covering extraction, processing, storage, transportation and trade,” he said. “By accepting collateral generated from mining activities themselves, we are removing a long-standing barrier that excluded many small-scale miners from formal finance.”

The framework will provide working capital loans, financing for modern equipment and machinery, gold-backed credit facilities, insurance services for mines and workers through CRDB Insurance, and dedicated mineral and gold transaction accounts to enhance transparency and traceability.

CRDB vice chairperson Donald Mmari said the board had adopted strategic guidelines to ensure that growth in the mining sector aligns with sustainability, accountability and inclusive development.

“We expect this partnership to support miners in transitioning from traditional methods to improved technologies and formal markets, while promoting value addition within the country,” he said.

By the end of last year, CRDB had extended Sh186 billion in loans to the mining sector, including Sh50 billion to small-scale miners and Sh136 billion to large-scale operators.

President of the Federation of Miners’ Associations of Tanzania (FEMATA), Mr John Bina, welcomed the signing of the MoU, saying it marks a turning point for small-scale miners who have long faced difficulties accessing credit due to rigid collateral requirements.

He pledged cooperation with both the bank and the Mining Commission to ensure responsible utilisation of the new financing window.

Officials said the MoU is expected to strengthen formalisation, expand access to affordable capital, generate employment for youth and women in mining communities and increase government revenues through improved transparency and digital monitoring of mineral transactions.