DSE pushes for alternative mining SMEs funding

MWANZA: MINING small and medium-sized enterprises (SMEs) should diversify their funding sources beyond bank loans to attract private investment and expand their role in Tanzania’s mineral economy, the Dar es Salaam Stock Exchange (DSE) has said.

The call was made during an enterprise acceleration programme workshop organised by the DSE in Mwanza over the weekend, bringing together 43 companies involved in mining, mineral trading and services supporting the sector.

DSE Chief Business Development Officer Mr Emmanuel Nyalali said companies should strengthen financial management, internal controls and corporate governance early to improve their ability to attract investors.

“Companies need to start preparing themselves early to become investor-ready rather than waiting until they have a pressing need for capital,” Nyalali said.

The DSE Enterprise Acceleration Programme (DEAP) introduced participants to private equity, venture capital and capital-market financing, as well as funding opportunities available through DEAP and Endeleza.

The initiative seeks to help businesses identify financing options suited to different stages of growth while improving their readiness to attract investment.

The DSE said many mining SMEs still rely heavily on bank loans for working capital and expansion, limiting access to longer-term growth capital.

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The initiative supports Tanzania’s Mining Vision 2030, which seeks to increase local participation in mining, mineral trading and the supply of goods and services to mining companies.

The Mining Commission said stronger domestic companies were critical to retaining more value from the country’s mineral resources locally.

Mining contributed 10.1 per cent of national revenue last year, while supporting employment, foreign-exchange earnings and businesses across the mineral value chain, the commission said.

Workshop participant Ms Prisca Ryoba said the training had broadened her understanding of capital-market opportunities and alternative financing mechanisms.

She said she would work with the DSE to utilise available opportunities, grow her business and strengthen its capacity to attract investors.