- Small-Scale Miners Push for New Lending Model to Unlock Mining Growth
Zimbabwe’s young miners are calling for a radical overhaul of lending practices, urging financial institutions to assess mining projects on their production potential rather than traditional collateral requirements that they say continue to shut out emerging entrepreneurs, Mining Zimbabwe can report.
By Ryan Chigoche
The proposal emerged during a dialogue on access to finance for artisanal and small-scale miners organised by planetGOLD Zimbabwe, where stakeholders examined ways of closing the long-standing financing gap facing the sector.
Speaking at the meeting, Young Miners Foundation Chief Executive Officer Payne Farai Kupfuwa said conventional lending models were built around established mining companies with fixed assets, leaving many young miners unable to secure capital despite having viable operations and the capacity to increase production.
“As young miners, we should not be considered based on what we already have, but on the potential that we have to extract more minerals through financing,” he said.
Kupfuwa argued that banks and other financiers should broaden their credit assessment criteria to include production history, operational performance, and growth prospects, particularly for youth-led mining enterprises that often lack title deeds or other forms of conventional collateral.
The call comes as access to affordable finance remains one of the biggest barriers to growth in Zimbabwe’s artisanal and small-scale mining sector. While the segment contributes a significant share of the country’s gold output, many miners struggle to raise capital to invest in equipment, expand production, and improve operational efficiency because they fail to meet traditional lending requirements.
Beyond financing, Kupfuwa said greater formalisation and professionalisation of artisanal and small-scale miners would improve their ability to access alternative sources of capital. Strengthening governance and business practices, he said, would increase confidence among lenders while opening the door to innovative financing models tailored to the realities of small-scale mining.
He also linked the financing challenge to Zimbabwe’s drive towards more responsible mining, saying limited access to capital is slowing the adoption of mercury-free gold processing technologies.
While cleaner processing methods are becoming increasingly important as the country seeks to reduce the environmental and health risks associated with mercury use, the high cost of acquiring modern equipment remains beyond the reach of many young miners.
“Most of the youth are setting up their mining enterprises. They need to be assisted even from the start, even without titles. There can be evidence of production track records and other proof showing that a young person is already producing,” Kupfuwa said.
He said financing products should be co-designed with miners to reflect the realities of the sector, enabling young entrepreneurs to invest in safer technologies, increase productivity, and participate more meaningfully across the mining value chain.
The discussions form part of broader efforts by government, financial institutions, and development partners to improve financial inclusion within Zimbabwe’s artisanal and small-scale mining sector. As the country pursues higher mineral output and more sustainable mining practices, stakeholders say expanding access to appropriately structured finance will be critical to unlocking the growth potential of the next generation of miners.
