BoT: Develop inclusive financing solutions for miners

DAR ES SALAAM: STAKEHOLDERS in the mining sector have been urged to develop implementable and inclusive financial solutions to unlock the full potential of the country’s gold industry, ensuring sustainability and long-term transformation.

Small and medium-scale miners are deeply rooted in informality, with unreliable financial records and high operational uncertainties, making it difficult for commercial banks to provide credit and structured financial support.

The Bank of Tanzania (BoT)’s Deputy Governor for Economic and Financial Policies, Mr Yamungu Kayandabila, said these challenges are hindering the mining sector from reaching its full potential.

“The mining sector is one of the cornerstones of our economy, yet its full potential remains untapped. It is now time for stakeholders to consider concrete solutions, such as designing financing models that foster development potential,” said Mr Kayandabila at the climax of the Afriexmbank-Tanzania Roadshow 2025.

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The two-day workshop, organised by Afreximbank, a Pan-African multilateral financial institution founded in 1993 under the African Development Bank (ADB), brought together key players from the mining, finance and policy sectors to explore economic opportunities and collaborative strategies.

Tanzania’s mining industry remains a vital pillar of the national economy, with gold being it’s most valuable and dominant mineral. The country is among Africa’s top gold producers and the government is now prioritising value addition, refining gold locally before export to maximise domestic benefits and create jobs.

Afreximbank’s Group Managing Director for Client Relations, Mr Eric Monchu Intong, reaffirmed the bank’s commitment to driving inclusive growth in the mining sector.

“The mining sector is critical not just for Tanzania, but for the continent. In Tanzania, mining contributes significantly to the GDP second only to tourism but its growth is hampered by structural and financial barriers, especially for smallscale miners,” Mr Intong said.

The bank’s support is based on a two-pronged approach: providing financial access to equipment, which enables small-scale and artisanal miners to purchase modern machinery, thus boosting productivity and operational capacity.

The bank also focuses on capacity building and local empowerment, in line with the country’s local content policies, to foster a more sustainable and self-reliant ecosystem.

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Furthermore, the bank supports value addition initiatives to ensure that more of the gold value chain remains within the country.

As the roadshow concludes, Afreximbank expects to finalise bankable transactions worth up to one billion US dollars over the next 12 months, aimed at transforming the country’s mining sector into a more inclusive and productive economic driver.