The Young Miners Foundation (YMF) has launched a revolving fund initiative to provide financial support to young miners in Zimbabwe. This program aims to address the critical challenge of limited access to funding, which has hampered the growth and success of young miners in the country, Mining Zimbabwe reports.
By Rudairo Mapuranga
Despite small-scale miners contributing over 60% of Zimbabwe’s mining output, many young miners face difficulties securing financing from traditional banks and micro-financiers due to the perceived high risks associated with mining. The revolving fund is set to act as a lifeline, offering essential financial resources to help miners grow their operations and sustain their businesses.
This initiative comes at a time when Zimbabwe’s mining sector is poised for significant growth. Projections indicate a 7% expansion in 2025, potentially generating US$6 billion in exports. However, for young miners to fully benefit from this growth, access to capital is crucial.
Speaking to Mining Zimbabwe, YMF CEO Payne Farai Kupfuwa emphasized the importance of financial support for miners across all levels of operation.
“Funding is a critical issue, especially in mining—whether small, medium, or large-scale. The mining sector is capital-intensive, and local financial institutions are often reluctant to invest due to the perceived risks,” Kupfuwa stated.
He explained that traditional financial institutions view mining as a high-risk venture, leaving miners without the capital needed to expand or sustain their operations. To bridge this gap, YMF is establishing the Young Miners Revolving Fund, which will offer small loans to miners affiliated with the foundation.
Kupfuwa also highlighted YMF’s efforts to build regional networks among young miners, particularly in Zimbabwe and Zambia. This network facilitates the sharing of resources such as compressors, excavators, financial support, and mining claims. By pooling their resources and expertise, young miners can overcome barriers to accessing equipment and funding.
The creation of the revolving fund marks a significant step toward empowering young miners in Zimbabwe. It will enable them to enhance their contribution to the country’s mining sector while ensuring the financial sustainability of their businesses.
