Dar es Salaam – CRDB Bank has entered into a memorandum of understanding (MoU) with the country’s Ministry of Minerals to provide affordable credit to artisanal and small-scale miners.
The agreement, signed on February 23, 2026, is expected to address long-standing challenges faced by miners in accessing finance, technology, and formal markets.
The partnership, which was officiated by the Minister for Minerals, Mr Anthony Mavunde, represents a direct implementation of directives from President Samia Suluhu Hassan to modernise the mining sector and expand financial inclusion.
Under the terms of the MoU, CRDB Bank will offer a special financing programme for small-scale gold miners, with concessional and flexible terms designed to stimulate sustainable growth and technological upgrading.
The bank has already disbursed Sh189 billion to the mining sector.
Significant contributor
Artisanal and small-scale mining is a significant contributor to Tanzania’s economy, providing a livelihood for an estimated 1 to 2 million people.
The sub-sector’s contribution to the mining industry’s share of GDP has surged dramatically from 4 per cent in previous years to 40 per cent, a testament to the government’s formalisation efforts.
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The mining sector as a whole contributes approximately 10.1 per cent to the country’s gross domestic product and accounts for 56 per cent of its foreign exchange earnings.
The scale of employment in the sector is also substantial. More than 18,000 people are currently employed in mining, with artisanal miners forming the backbone of this workforce.
This employment is particularly significant for rural communities, where alternative economic opportunities are limited.
Challenges
Despite their economic significance, artisanal miners in Tanzania have historically faced considerable obstacles.
Research indicates that miners struggle with a lack of collateral to secure loans, limited financial literacy, and difficulties in obtaining formal credit from commercial banks.
These barriers have hindered their ability to invest in modern equipment, improve safety standards, and adopt more environmentally friendly mining practices.
The challenges extend beyond finance. Miners often lack access to reliable information about market conditions, regulatory requirements, and best practices.
Environmental and health concerns, including inadequate safety measures and exposure to hazardous chemicals, have also plagued the sector.
READ MORE: Tanzania’s Gold Rush: Foreign Enablers and the Plight of Local Miners
The fragmented nature of the mining value chain, with multiple intermediaries and informal arrangements, has further complicated efforts to formalise and regulate the industry.
The government has been actively working to address these challenges through a series of policy reforms and institutional initiatives.
Tanzania is one of the few African countries that legally recognises small-scale miners, and the government has been issuing licences, revoking idle prospecting permits, and reallocating viable areas to local miners.
These measures are designed to raise output, efficiency, and incomes.
A significant development occurred in 2024 when the Bank of Tanzania began purchasing gold from small-scale miners, a move that has helped to formalise the trade and provide miners with a reliable, transparent market.
As of February 2026, the central bank had accumulated over 16 tonnes of gold reserves through this programme.
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The government has also invested in geological mapping and surveying. According to Minister Mavunde, speaking at the signing ceremony, geological mapping has covered more than 97 per cent of the country, whilst detailed geological surveys stand at 24 per cent and high-resolution surveys at 16 per cent.
These efforts are designed to help miners identify mineral-rich areas and reduce the risks associated with exploration.
CRDB Bank partnership
The new MoU with CRDB Bank represents a significant step forward in addressing the financing gap.
During the signing ceremony, CRDB Bank’s Managing Director, Dr Abdulmajid Nsekela, emphasised the bank’s commitment to the sector.
“The empowerment programme aims to transform small-scale mining into a productive and value-adding activity that contributes meaningfully to national economic growth,” he said.
READ MORE: What Does Formalisation of Artisanal and Small-scale Mining Sector Look Like?
As a demonstration of this commitment, the bank announced a Sh50 billion loan to Songwe Gold Family, described as the largest financing package ever extended to a small-scale mining group in Tanzania.
This facility is expected to set a new benchmark for sector funding and signal the bank’s confidence in the sector’s potential.
The partnership is designed to support not only mining operations but also the broader value chain.
The bank will work with miners to ensure they have access to the capital needed for equipment, processing facilities, and environmental compliance measures.
