NMB launches club to empower miners

Arusha. Northern Zone clients of NMB Bank Plc who engage in mining now have their own networking platform.

The platform is part of the lender’s wider plan to raise lending to the mining sector from the current Sh63 billion to Sh200 billion by 2025.

Known as ‘NMB Northern Zone Mining Club’, the platform – which was unveiled in Arusha at the weekend – seeks to empower players in the sector with their financial and operational needs.

This is the third platform for NMB Bank’s clients in the mining sector after the ones for Dodoma and Mwanza which were launched in June and July 2021 respectively.

The clubs – which are also earmarked for Kahama, Chunya and Morogoro - form a network of the bank’s customers in the mining sector and other stakeholders.

Speaking at the Arusha event during the weekend, the NMB Northern Zone Manager, Mr Dismas Prosper, said the new club was a special arrangement to better serve and empower miners and other sectoral players.

“What we are launching today is the outcome of adequate research and proper establishment of existence of funding needs for all stakeholders in the mining value chain with capital and asset financing being the outstanding requirements,” Mr Prosper said.

NMB’s Senior Manager (Business Banking), Mr Christopher Mgani, said the bank has the requisite fiscal muscle to handle credit demands of sectoral stakeholders. He said the bank has a distinct lending package for acquisition of both new and used mining equipment.

Under it, he said, a customer going for the used assets is required to contribute 30 percent of the procurement cost - and 20 percent when the equipment is new.

Miners, buyers, sellers and suppliers who attended the inauguration of the mining club in Arusha commended NMB for the support. They, however, asked for reduction in interest rates.

The leader of artisanal miners, Ms Rachel Njau, said enlightenment lessons before extending loans for better credit management are equally important.

She said this cadre of miners is generally unknowledgeable of financing and investment issues, which greatly affects their productivity.