admin
Speaking during the commissioning of equipment for small-scale miners in Umguza last Wednesday, Tetrad Bank general manager Mr Toddy Muchongwe said his institution had already set aside funding for small-scale miners in a bid to cement business relations with them.
“We have set aside $1 million to finance the acquisition of equipment for small-scale miners. The fund is available and disbursement conditions will be discussed with the interested candidate. This loan facility is payable after 12 months,” said Mr Muchongwe.
“As part of the programme we will set up gold buying houses in Bulawayo, Gwanda and Bubi. The idea behind the initiative is to ensure that small-scale miners formalise their operations. We will also provide all the necessary assistance.”
BancABC corporate affairs manager Mr Mpumelelo Mkhwananzi said his bank was aware of the role of small-scale miners in the country’s economy and also pledged support for the sector.
“As a bank we appreciate that economic recovery is hinged on mining. We will also assist in the acquisition of equipment for the small-scale miners through our asset finance scheme. We are aware that collateral is a challenge but as a bank we will consider the equipment bought by our clients as collateral. The miners would only be required to pay between 30-40 percent of the cash total,” said Mr Mkhwananzi.
A representative of ZB Bank who also attended the meeting said his company had created a development fund for youths in mining. He said the scheme allowed youth miners to get loans to purchase equipment worth up to $20 000.
Speaking at the same occasion Mines and Mining Development Minister Dr Obert Mpofu commended banks for joining hands with the Government in boosting the mining sector.
Deputy Minister Gift Chimanikire said small-scale miners did not have the capacity to meet some of the stringent loan conditions set by banks.
He urged the financial institutions to use the geological information about the mineral deposits as a guarantee that the miner would make profits and pay back.
Over the years, small-scale miners have complained of lack of funding for their ventures. They said the requirement for collateral was reducing their chances of funding by banks.
Online Reporter