THE first mining bank in the country is expected to be ready come 2022, the Federation of Miners Associations of Tanzania (FEMATA) has said.
The mining stakeholders have been pushing for the establishment of their financial institution to ensure reliable funding of the growing mining sector in the country.
FEMATA Executive Secretary, Lister Balegele said on Wednesday that all is set for the bank to be fully operational in the next two years and that all the arrangements are on a top gear.
“We are progressing well and are now working on crucial procedures that will lead to the establishment and smooth running of the bank as we are determined to avoid mistakes that affected other banks shortly after they were established,” he said.
He said FEMATA was enjoying guidance of the Bank of Tanzania (BoT) on the matter and that stakeholders are working day and night to raise required capital as per instructions from the Central Bank.
During mining stakeholders’ meeting held here over the weekend, delegates expressed disappointment over what they termed as reluctance by the commercial banks in the country to dish out loans to small scale miners on reasons the sector has unbearable risks.
Speaking at a session which was also addressed by the Tanzanian Ambassador to China, Mbelwa Kairuki, stakeholders mainly from middle and small scale mining sectors, said cumbersome procedures in supporting local mining companies financially should immediately be addressed.
“We are still getting a lot of troubles in accessing loans from local banks which call for an immediate need for the establishment of a special bank that will directly attend to our financial needs,” said Mr Baraka Ezekiel, the Managing Director of Busolwa Mining Company.
Mr Ezekiel also challenged the Tanzanian Embassy in China to create a special window for Tanzania mining investors venturing to China for technologies and business partnerships.
He said it was difficult for the local mining dealers to make it to China without special guidance, adding many dealers lack technical know-how in accessing markets from the Asian economic giants.
However, some local commercial banks reported to have started working on modalities leading them to provide loans to the qualified mining companies.
On his side Ambassador Kairuki said reliable funding of the mining sector in the country was extremely important for the industry to effectively contribute to the equitable and ambitious national economy growth.
