Why Financing Is Finally Becoming Available
For years, small-scale miners in Tanzania were refused bank loans because lenders could not value the ore, the licence or the operator. That is changing. Small-scale miners now contribute a large share of mining revenue, and the government has pushed banks, state institutions and miners toward formal lending. The pieces are not perfect, but a well-prepared licence holder in 2026 has more routes to capital than at any time before.
Bank Lending Arrangements
- STAMICO agreements with CRDB, NMB, KCB and NBC, signed through the Ministry of Minerals to create lending arrangements for small-scale miners
- Mining Commission and CRDB agreement, signed in Dar es Salaam on 23 February 2026, targeting capital access, technology adoption and growth in small-scale mining
- A proposed credit guarantee fund for miners and mineral traders, intended to absorb part of the lender's risk and make loans easier to approve. At the time of writing it is being developed, so ask your bank what is currently in place
- Ministerial pressure on banks to design products specifically for small-scale miners
Earlier programmes have already moved money: the government reported TZS 187 billion disbursed to small-scale miners between July 2023 and March 2024.
STAMICO Drilling for Small Miners
Lenders ask the same question every miner should: how much gold is in the ground? Drilling answers it, and it has always been out of reach for small operators. STAMICO and the Geological Survey of Tanzania have been building a fleet of drilling rigs for small-scale miners, with five rigs bought for TZS 2.22 billion and a plan to reach 15. The charge to small-scale miners was reduced to TZS 10 million from TZS 25 million.
Drilling results do three things at once: they tell you whether the deposit justifies a plant, they size the plant correctly, and they give a bank something to lend against. See drilling services in Tanzania.
What Banks Look For
- A valid licence with rent paid and no disputes over the ground
- Compliance documents: environmental management, mining and mine opening plans. The 2026 inspections showed many operations lack them, and banks notice
- Geological evidence: assays, drilling results or at least systematic sampling
- Sales history: receipts from mineral markets and royalty payments. This is one of the strongest signals a lender can see
- A clear use of funds: itemised equipment quotations, delivered to site
- A simple cash flow: tonnes per day, recovered grade, gold price, operating cost and loan repayments
- Security: the equipment itself, other assets, or a guarantee
Loan, Lease or Hire
| Route | Best when | Watch out for |
|---|---|---|
| Bank loan | You have a sales history and a clear plant purchase | Repayments start before the plant reaches full production |
| Equipment lease or lease to own | The equipment itself is the main security | Total cost over the term; what happens if you miss a payment |
| Equipment hire | The deposit is not yet proven, or the need is short-term | Rates add up quickly on long jobs. See hire or buy |
| Technical support partner | A partner brings capital and expertise under the regulations | The agreement terms, and meeting the plans inspectors now enforce |
Borrow for What Pays Back
The best first loan buys equipment that increases recovered gold from ore you already mine, because the extra gold starts repaying the loan immediately. Typical examples:
- A centrifugal concentrator replacing mercury amalgamation
- A correctly sized ball mill where the current mill grinds too coarse
- Leach tanks where tests show gold left in gravity tailings
- A generator where lost production from power cuts is costing more than the repayment
Borrowing to open new ground before it is drilled, or for a plant sized beyond the ore you can supply, is where small mines get into trouble.
Frequently Asked Questions
Which banks lend to small-scale miners in Tanzania?
STAMICO has signed lending arrangements with CRDB, NMB, KCB and NBC, and the Mining Commission signed a separate agreement with CRDB in February 2026. Terms and eligibility vary by bank and change over time, so approach more than one.
Can I use my PML as security for a loan?
A licence alone is rarely enough. Banks look at the whole picture: geological evidence, sales records, compliance documents and the equipment being financed. The licence proves the right to mine; the rest proves the ability to repay.
How do I get STAMICO to drill my licence?
Contact STAMICO or your Resident Mines Officer about the small-scale drilling programme, current charges and waiting times. Prepare your licence documents and a clear map of the area you want drilled.
Should I buy new or used equipment with a loan?
Either can work, but lenders value equipment with a clear specification, condition and resale value. If buying used, get an inspection report. See buying used mining equipment.