NMB Bank Plc plans to spend more than 120bn/-to offer capital, equipment and machinery loans to small-scale miners in a move to support efforts to increase productivity in the mining sector.
Speaking in Mwanza during the launching of the Lake zone Mining Club over the weekend, the NMB’s Head of Business Banking Mr Alex Mgeni said so far, the bank had already issued loans worth more than 63bn/- to the group.
“Small-scale miners will be provided with equipment and machinery loans without security because the machines and equipment will be their guarantee after coming up with 20 per cent of the equipment’s value,” said Mgeni.
Speaking during the event, which brought together miners from Mwanza, Mara, Simiyu, Geita, Shinyanga and Kagera regions, President of Federation of Miners Associations of Tanzania (Femata) Mr John Bina said the bank’s push to enable loans to small-scale miners will not only increase productivity, but also boost miners economy as well as the nation.
“Technology and capital are among the chronic challenges in the mining sector, especially for the small-scale miners, NMB’s decision will end the capital problem and will probably also end the technology issue because miners will be able to hire experts and eventually productively,” Mr Bina said.
Urging small-scale miners to dispel fears and misconceptions about bank loans, the Femata President assured financial institutions business opportunity in the mining sector which he said was increasing in value even as the world is facing a corona virus epidemic.
Mwanza Regional Commissioner, Robert Gabriel assured NMB the government’s willingness to work together with financial institutions and other stakeholders to implement policies and strategies to increase productivity in the mining sector which he said has been steadily increasing over the past five years.
“Mining sector contribution to the GDP has increased from 3.4 per cent in 2015 to 5.2 percent in the 2019/20 financial year and it is expected to reach more than 10 per cent by 2025,”said Mr Gabriel.
He advised small-scale miners in the country to join forces to afford not only opening up medium and large mines, but also to provide services in major international mines through a local content policy that directs part of services to be provided by local companies.