By Charles Mkoka
CRDB Bank has signed a long-term partnership agreement with Tanzania’s mining sector to expand financing for small-scale gold miners, in a move authorities say could deepen the industry’s contribution to economic growth.
The agreement, unveiled at a signing ceremony overseen by the Mining Commission of Tanzania and the Ministry of Minerals Tanzania, brings together government officials, financial institutions and industry stakeholders under a special funding framework targeting artisanal and small-scale miners.
Honoring the event, Minister for Minerals Anthony Mavunde said the partnership marked a positive shift in how financial institutions engage with the mining industry.
“I invited all banks not to shy away from the mining sector. Today is the third time I am being invited to witness support extended to small-scale miners,” Mavunde said, thanking CRDB’s leadership for what he described as a practical commitment to Tanzanian participation in the sector.
He said Tanzania’s 2009 Mineral Policy continues to guide reforms aimed at ensuring both large- and small-scale miners benefit from development opportunities.
The minister noted that geological mapping has covered more than 97% of the country, while detailed geological surveys stand at 24% and high-resolution surveys at 16%.
“If we have achieved these benefits with just 16% high-resolution coverage, imagine what could happen if we triple that effort,” he said.
According to Mavunde, the mining sector accounts for 56% of Tanzania’s foreign exchange earnings and contributes about 10.1% to gross domestic product, equivalent to roughly 2.1 trillion Tanzanian shillings.
He added that Tanzania began purchasing gold in 2024 through the Bank of Tanzania under directives from President Samia Suluhu Hassan, and has since accumulated more than 16 tonnes in reserves, compared with Nigeria’s 22 tonnes.
The minister also warned licence holders against hoarding mineral rights without developing them, saying the government would take action to ensure resources are productively utilised.
Vice Chairman of CRDB’s Board, Dr. Donald Mmari, said the investment would strengthen and formalise the sector’s value chain, while aligning with environmental, social and governance (ESG) standards.
“We commend these efforts as they place the mining sector in a stronger position to drive national economic growth,” Mmari said, noting that the bank was committed to broad-based sector development and empowering local participants.
Speaking at the event today, Deputy Permanent Secretary in the Ministry of Minerals, Msafiri Mbibo, said small-scale miners now account for up to 40% of Tanzania’s gold output, a sharp rise from about 4% in previous years.
“This initiative is critical in expanding financial inclusion and increasing revenue flows across the mining value chain,” Mbibo said.
He added that improved access to finance would support safer mining practices, wider adoption of modern technology and remove bottlenecks that have constrained production.
Under the new arrangement, Songwe Gold Family Group became the first beneficiary, securing a 50 billion Tanzanian shilling loan from CRDB to expand its operations.
Officials said the initiative supports Tanzania’s broader Vision 2030 ambitions, aiming to transform the mining sector into a key driver of inclusive and sustainable economic growth.