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| Minister for Minerals, Anthony Mavunde (first left), and CRDB Bank Vice-Chairman, Dr Donald Mmari (third left), witness as CRDB Bank Group Chief Executive Officer, Abdulmajid Nsekela (right) and Mining Commission Executive Secretary, Ramadhani Lwamo shake hands as they display the signed Memorandum of Understanding, which aims to strengthen the formalisation of miners, expand access to affordable capital, and create employment opportunities for youth and women in mining communities in Dar es Salaam. |
DAR ES SALAAM | February 23, 2026 – Tanzania’s mining sector has entered a decisive growth phase following the signing of a Special Agreement between the Mining Commission and CRDB Bank aimed at expanding access to finance for artisanal and small-scale miners (ASMs).
The landmark agreement, unveiled by the Minister for Minerals, Hon. Anthony Mavunde (MP), implements directives from President Dr. Samia Suluhu Hassan to accelerate sector reforms, crowd-in investment, and increase mining’s contribution to GDP.
The signing ceremony took place at the Johari Rotana Hotel in Dar es Salaam, signaling a major public–private collaboration in support of inclusive growth.
Mining: A Strategic Engine of the Economy
Tanzania’s mining sector continues to demonstrate strong performance, contributing:
- 10% of national GDP
- Over 56% of foreign exchange earnings
- More than US$5 billion in annual mineral exports
Minister Mavunde described the initiative as a policy-to-capital bridge, aligning government reforms with financial sector solutions.
“The mining sector is now an engine of our economy. What we are witnessing today is a bridge connecting the Government’s vision with financial capital from the banking sector. This partnership directly touches small-scale miners and elevates them into the formal economy,” he said.
He added that ongoing reforms aim to move Tanzania beyond raw mineral exports toward local processing, technology adoption, and value addition, consistent with National Development Vision 2050.
A Historic Shift in Mining Finance
At the heart of the agreement is a transformative financing framework designed to de-risk lending to small-scale miners at scale.
🔑 Key Features of the Framework
- Inclusive collateral model – Accepts mining and gold trading licenses, gold sale contracts, gold reserves, and operational assets — not just immovable property.
- Field-driven product design – CRDB conducted on-site due diligence with miners to structure practical, operationally grounded financing solutions.
- Working capital and equipment financing – Supporting productivity upgrades and modernization.
- Gold-backed loans – Unlocking value from production.
- Insurance services – Covering mines and workers.
- Dedicated mineral and gold transaction accounts – Enhancing traceability and transparency.
- Financial literacy and advisory support – Pairing capital with capability building.
For the first time in Tanzania’s banking sector, collateral derived directly from mining operations is formally recognized as acceptable loan security.
CRDB Managing Director and Group CEO, Abdulmajid Nsekela, described the initiative as a national milestone in inclusive finance.
“This is a new financial structure that acknowledges the realities of the mining sector. We have accepted collateral derived from miners’ actual operations instead of unrelated assets. This will open doors for thousands of small-scale miners who were previously excluded from the formal financial system.”
Record-Breaking First Facility
In a historic first, Songwe Gold Family secured a TSh 50 billion single-tranche facility — the largest financing package ever extended to artisanal and small-scale miners in Tanzania.
The move signals strong confidence in the segment’s growth potential and marks a turning point in scaling ASM operations.
Guarantee Fund to Further Reduce Barriers
A Mining Sector Guarantee Fund is currently in its final stages of establishment. Once operational, it is expected to:
- Reduce collateral constraints
- Accelerate formalization of ASM activities
- Crowd in additional private capital
This mechanism is seen as critical in unlocking broader participation in formal financial systems.
Capital Already at Work
By the end of last year, CRDB Bank had disbursed TSh 186 billion to the mining sector:
- TSh 136 billion to large-scale miners
- TSh 50 billion to artisanal and small-scale miners
This demonstrates that financing is already flowing — and scaling.
Sustainability, Formalization and Vision 2050 Alignment
CRDB Vice Chairperson of the Board, Dr. Donald Mmari emphasized that the Board has adopted strategic guidelines to ensure mining sector growth aligns with principles of sustainability, accountability, and inclusive development.
“We want to see small-scale miners graduate from traditional mining methods to using improved technologies, accessing formal markets, and participating in value addition,” said Dr. Mmari.
Deputy Permanent Secretary Msafiri Mbibo reinforced mining’s strategic role under Tanzania’s Development Vision 2050, positioning the sector as a catalyst across multiple linked industries through strong public–private execution.
Industry Response: A Breakthrough Moment
Speaking on behalf of miners, John Bina, President of the Federation of Miners’ Associations of Tanzania (FEMATA), described the agreement as the answer to a long-standing industry call.
The initiative, he said, opens a new chapter for bankable, scalable, and sustainable small-scale mining, bringing renewed hope to thousands who previously struggled to secure financing due to lack of acceptable collateral.
Kitomari Banking & Finance Blog Insight
This agreement marks more than a financing breakthrough — it represents a structural shift in Tanzania’s credit architecture for the mining sector.
By recognizing operational mining assets as bankable collateral, CRDB and the Government have effectively reduced one of the largest structural barriers facing artisanal and small-scale miners: access to formal capital. This move recalibrates risk assessment models within the banking sector, aligning credit evaluation with productive capacity rather than fixed-asset ownership.
The implications are significant.
First, formalization is likely to accelerate as miners enter structured banking channels, improving traceability, tax compliance, and export transparency. Second, productivity gains driven by equipment financing and technology upgrades could raise output efficiency and sector-wide profitability. Third, the planned Guarantee Fund introduces a risk-sharing mechanism that may crowd in additional private lenders, deepening financial inclusion across the value chain.
If executed effectively, this framework could unlock multiplier effects beyond mining — stimulating logistics, refining, insurance, equipment supply, and regional trade.
In essence, Tanzania is moving from policy reform to capital deployment — positioning artisanal and small-scale miners not as peripheral operators, but as scalable contributors to GDP growth, employment creation, and domestic value addition.
For investors and financial institutions, the signal is clear: mining finance in Tanzania is entering a more structured, bankable, and growth-oriented phase.
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