BoT approves proposal to establish Tanzania Small- scale Miners’ bank

GEITA: THE Bank of Tanzania (BoT) has approved a proposal by the Federation of Miners Associations of Tanzania (FEMATA) to establish a bank for small-scale miners.

BOT Governor Mr Emmanuel Tutuba accepted the proposal presented by FEMATA on August 20th, 2026 during a special meeting between BOT and FEMATA members in Geita Region.

Mr Tutuba said that if FEMATA is genuinely committed to establishing the bank, BoT was ready to receive a formal application and begin the process of establishing the financial institution.

“When it comes to capital, we consider the amount required by law before issuing a licence. The capital must also be from a source other than borrowed funds,” he said.

He said that despite the commitment to establish the bank, all regulatory requirements must be met, including having a board and management free from conflicts of interest, as well as experienced leaders.

“For a business to be sustainable, it must operate transparently. You have the capacity, you have a reason for establishing the bank and you have the commitment. Therefore, our doors are always open to you,” he said.

“By coming together and pooling your resources, you can establish a strong and effective bank that will continue to make a positive contribution to our mining sector,” Mr Tutuba said.

He said FEMATA would also be required to develop a lending policy and submit it to BOT for review and approval, specifying the types of loans the bank would offer.

“We must establish a proper banking management system with experienced, professionally qualified, trustworthy and competent people capable of managing the bank,” he said.

“We can even set aside some of our experts to guide you more closely, provide training and eventually help you establish a better bank,” he added.

Mr Tutuba stressed that all banks operating in Tanzania are regulated in accordance with international standards, which ensure that the financial sector remains stable and adequately capitalised.

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He said that for the first four years, there would be a supervisor who would continue to provide support in addressing challenges related to implementation, employment and management.

“There must also be an internal ICT system to ensure that all funds held by the bank remain secure, including systems for controlling money-laundering risks,” he said.