By Our Reporter
DAR ES SALAAM: Local suppliers seeking to tap Tanzania’s growing mining industry could gain easier access to financing under a five-year partnership between NMB Bank and the Tanzania Mining Industry Suppliers Association (TAMISA).
The agreement is designed to address one of the main constraints facing businesses in the mining supply chain—limited access to capital—while also improving suppliers’ financial and business management skills.
Under the partnership, NMB will assess projects submitted by TAMISA members and finance those that meet its lending requirements. The bank will also provide financial literacy, business advisory services and training to help suppliers manage their operations and fulfil mining-related contracts.
NMB Chief of Personal and Business Banking, Filbert Mponzi, said lack of capital remained a major challenge for many companies providing goods and services to mining firms.
“Capital has been a major challenge for many service providers in the mining sector,” Mr Mponzi said.
He said NMB had strengthened its support for businesses operating in the mining industry, including establishing a dedicated desk to serve suppliers and other service providers.
The financing arrangement could help address a common challenge for local suppliers that need working capital to purchase equipment, hire workers or secure materials before they are paid for completed contracts.
For TAMISA members, access to finance is particularly important as mining companies increase demand for local goods and services and as businesses compete for procurement opportunities within the sector.
TAMISA Marketing and Investment Committee Chairman, Dr Sebastian Ndege, said the agreement would strengthen members’ ability to compete for tenders, access capital and participate more effectively in opportunities generated by the mining industry.
He said the partnership would give local suppliers greater capacity to position themselves within the mining value chain rather than remaining on the margins of the sector’s expanding business opportunities.
The agreement comes as Tanzania continues to promote greater participation of local businesses in mining, with procurement and service contracts providing an important avenue for domestic firms to benefit from the sector’s expansion.
For suppliers, however, winning contracts is only part of the challenge. The ability to finance operations and deliver contracts on time can determine whether they can convert mining opportunities into sustainable businesses.
The NMB-TAMISA partnership seeks to bridge that gap by combining access to finance with business skills and advisory support.