The Ministry of Mines and Mining Development is in the process of recapitalising the Mining Industry Loan Fund, a facility introduced in 2022 to support the mechanisation and growth of artisanal and small-scale mining operations, Mining Zimbabwe can report.
By Ryan Chigoche
The fund was established to address one of the sector’s biggest challenges — limited access to affordable capital — which has often constrained productivity and contributed to unsafe working conditions.
Deputy Chief Government Mining Engineer, Eng. T. Paswavaviri, confirmed that a fresh injection of US$5 million was recently availed by the government to boost the fund. Of this amount, about US$3.8 million has already been committed towards procuring mining equipment.
“We do have a kitty of US$5 million that was availed by the government and so far out of the five million we have committed about 3.8 million US dollars in procuring equipment, mining equipment locally and abroad. We have managed to purchase equipment like ball mills, geocrushers, pumps and generators. Most of this equipment is on the high seas en route to Zimbabwe, and we expect that by the end of October, most of it will be delivered,” he said.
The Mining Industry Loan Fund was introduced as part of the government’s drive to formalise artisanal mining and integrate it into the mainstream economy.
The facility provides two main types of support — plant and equipment hire loans as well as mining establishment loans — giving miners access to the machinery and capital needed to expand operations.
The latest recapitalisation is expected to strengthen this support, ensuring that more miners benefit from modern equipment that can increase production while promoting safer and more environmentally responsible mining practices.
Artisanal and small-scale miners are a key part of Zimbabwe’s mining sector, contributing more than 67 per cent of gold deliveries to Fidelity Gold Refinery, the country’s sole buyer and exporter of gold.
By equipping this segment with modern tools, the government hopes to boost output, improve recovery rates, and reduce leakages through informal markets.
The recapitalisation is also in line with Zimbabwe’s broader goal of growing mining’s contribution to the US$12 billion mining economy target and driving sustainable economic development.
Authorities expect the delivery of the newly purchased equipment to mark a major milestone for the fund and provide a significant boost to productivity across the ASM sector.
However, experts note that timely equipment delivery, operator training, and loan repayment discipline will be critical to ensure the fund remains sustainable and delivers lasting benefits to the mining industry.
