The Bank of Tanzania has stepped up efforts to encourage small and medium-scale miners to shift from cash-based transactions to formal and digital payment systems, saying the move will improve security, strengthen business records and expand access to bank loans.
The message was delivered during a financial literacy training held in Kahama District, Shinyanga Region, where BoT officials met miners and explained how modern payment systems can transform their businesses.
BoT payment systems specialist Latifah Mikoyi said relying on cash exposes miners to avoidable risks such as theft, loss and lack of financial traceability.
She said digital financial services now make it easier and safer to conduct transactions using mobile phones and mobile banking platforms.
According to her, miners can now receive payments from buyers instantly, pay workers efficiently and reduce the risks associated with handling large amounts of cash.
“Formal payment systems make business safer and more organised. They also help miners build a financial history that is very important when applying for loans,” she said.
She added that many miners struggle to access credit because their businesses are not well documented, as most transactions are done informally in cash.
By adopting formal systems, she said, their financial records become visible and verifiable to financial institutions.
Another BoT facilitator, Mukrim Ramadhan, said financial literacy is essential for building a strong economy and helping citizens make better decisions about money, investment and savings.
He said BoT has introduced a national programme known as Certified Financial Educator, which has so far trained and certified more than 1,050 educators who now deliver financial knowledge across communities.
Ramadhan said the training also encourages investment habits, including participation in safe government-backed instruments such as bonds, which help individuals grow savings while supporting national development.
BoT financial analyst CPA Michael Israel Mwaituka explained the role of Credit Guarantee Schemes in improving access to finance for entrepreneurs and miners.
He said the schemes, including the Export Credit Guarantee Scheme introduced in 2012/2013 and another facility launched in 2015 for small and medium enterprises, are designed to reduce lending risks for banks and make it easier for business owners to obtain loans.
He added that through these mechanisms, miners can access credit to buy equipment and expand their operations, even when they lack traditional collateral.
Representing the private sector, Benedict Toto from the Tanzania National Chamber of Commerce, Industry and Agriculture (TNCCIA) said access to finance remains one of the biggest challenges facing small-scale miners, mainly due to the high cost of mining equipment.
He urged financial institutions to review lending policies to better reflect the realities of small business operators in the mining sector.
Miners who attended the training said the programme had helped them rethink how they manage money, save income and plan for long-term growth.
Federation of Miners Associations of Tanzania (FEMATA) Deputy Secretary General Gregory Kibusi said the training was timely, as it focused on budgeting, financial discipline and investment opportunities.
He said miners were introduced to options such as unit trusts and treasury bonds, which can also be used to strengthen their creditworthiness when applying for loans.
One of the participants, Solomon Mataba, said poor financial discipline remains a major challenge among miners, noting that large earnings are often spent quickly without proper planning.
“These trainings are important because they teach us how to manage money wisely. Without planning, income disappears very fast,” he said.
Another miner, Irene Msuya from Kilosa Kwe Company, said many miners previously feared banking services but now understand how formal financial systems can help them save, invest and access loans more easily.
Earlier, BoT Mwanza Zone Acting Director Amon Mwambonda said Tanzania has made major improvements in payment systems over the past decades, making transactions faster, safer and more efficient.
He said BoT continues to strengthen financial infrastructure to ensure citizens access reliable and secure payment services.
Opening the training, Kahama District Commissioner Frank Nkinda commended BoT for bringing financial education closer to citizens, especially miners, saying it is key to improving household incomes and supporting national development.
He said financial literacy empowers citizens to use resources effectively and participate in economic growth.
“Development begins with understanding how to manage money. When citizens are financially informed, they are better placed to improve their lives and contribute to the nation’s economy,” he said.
Nkinda expressed confidence that the knowledge gained from the training would help transform the livelihoods of miners and their families, not only in Kahama but also in surrounding communities.
