The Zimbabwe Miners Federation (ZMF) is calling on local banks to employ mining professionals, such as geologists and industry experts, to create specialized desks aimed at improving small-scale miners’ access to crucial financial resources.
By Ryan Chigoche
Tafi Chitsunge, a senior official at ZMF, emphasized that small-scale miners face significant challenges in securing capital due to stringent bank requirements that do not take into account the unique aspects of mining operations.
During a recent ZMF meeting with industry suppliers, Chitsunge pointed out the importance of having professionals who understand the complexities of the mining sector.
He stressed that, “Local banks must have mining professionals who understand the technical and operational aspects of the mining sector in order to effectively assess and support viable projects. This will enhance small-scale miners’ access to much-needed capital, which has long been a major challenge due to a lack of sector-specific knowledge within financial institutions.”
Small-scale miners are a key part of Zimbabwe’s gold sector, accounting for approximately 65% of total gold production in 2024, which equates to around 23.69 tonnes. In contrast, large-scale miners contributed the remaining 35%, or about 12.79 tonnes.
Despite their vital role in the economy, small-scale miners continue to face significant hurdles when it comes to accessing the necessary funding to expand and modernize their operations.
Many small-scale miners lack formal geological surveys and resource evaluations, making it difficult for banks to assess the viability of their projects.
As a result, traditional financial institutions often reject applications from these miners, who are unable to meet the stringent criteria required for securing loans.
This lack of financial support limits their ability to invest in modern equipment or improve production methods.
Chitsunge emphasized that one way to address this issue is by hiring professionals with a deep understanding of the mining sector.
He explained that a dedicated mining desk, staffed by experts familiar with the unique challenges of small-scale mining, would streamline the loan approval process and better align financial support with the needs of miners.
Such an initiative would also play a crucial role in helping Zimbabwe achieve its ambitious gold production target of 40 tonnes by 2025.
With small-scale miners expected to play a central role in reaching this target, providing them with the financial support they need is essential for the country’s economic growth.
The ZMF has called for greater collaboration between the government, financial institutions, and mining associations to create a more inclusive financial ecosystem for small-scale miners. Chitsunge stressed that improving access to capital is not only necessary to meet Zimbabwe’s gold production goals but also crucial for ensuring the long-term sustainability and growth of the sector.
By securing improved financial resources, small-scale miners can modernize their operations, adopt more sustainable practices, and continue to play a key role in the country’s economic recovery.
