Bulawayo, (New Ziana)-The Zimbabwe government is reviewing requirements for accessing the Mining Industry Loan Fund to procure equipment as it seeks to close the financing gap facing artisanal and small-scale gold miners.
Acting Mining Industry Loan Fund Manager in the Ministry of Mines and Mining Development Ranga Mhazo said this during a dialogue on finance for artisanal and small-scale gold mining hosted by PlanetGOLD Zimbabwe in Bulawayo on Friday.
PlanetGOLD Zimbabwe is a national project launched in 2024 to reduce toxic mercury use small-scale gold mining and assist miners transition into the formal economy.
The dialogue was held under the theme, “Unlocking Responsible Finance and Formalised Artisanal and Small Scale Gold Miners(ASGM):Pathways to Investment, Business Growth and Mercury Free-Mining”.
It brought together representatives of government ,financial institutions, mining associations, development partners, artisanal and small scale miners and private sector stakeholders to explore practical solutions for expanding access to finance for responsible and formalised ASGM enterprises.
Mhazo said conventional financing remained out of reach for many miners because of strict lending conditions and collateral demands.
“The Mining Industry Loan Fund is administered by the Ministry of Mines and Mining Development to support small-scale miners so that they can grow from small-scale to medium- and eventually large-scale mining operations,” he said.
He explained that access to finance was a persistent challenge, both in Zimbabwe and globally, with financial institutions often viewing small-scale mining as a high-risk sector.
“Financial institutions often regard the small-scale mining sector as high-risk and are therefore not willing or flexible enough to provide funding to small-scale miners. This is largely because many miners do not have the required collateral or fail to meet the criteria set by banks,” he said.
Mhazo said this leaves miners unable to invest in equipment and production, locking the sector into a cycle of low output and limited growth.
“To address the issue of ASM financing, we support small-scale miners through the provision of mining equipment at cheaper and competitive prices, on a hire-purchase basis,” he said.
Under the arrangement, Mhazo explained that miners can acquire equipment and repay its cost in monthly instalments from proceeds generated by their operations, rather than paying the full amount upfront.
“This approach assists miners in becoming operational and generating revenue without having to make the full payment for the equipment upfront,” he said.
He added that the ministry would review the fund’s criteria and requirements to better reflect conditions in the sector and reduce unnecessary delays.
“We want to make it easier for miners to access mining equipment, with less bureaucracy and through a more efficient process, “Mhazo said.
The fund currently has generators, compressors, jaw crushers, separators and slurry pumps available, he added.
Mhazo further said the ministry would continue assessing miners’ needs to ensure the equipment offered remains relevant to production demands.
“The initiative positions equipment-based financing as a practical route for Zimbabwe’s artisanal and small-scale miners to improve production, repay investment from their operations and progress into larger mining businesses,” he said.
The planetGOLD Zimbabwe Project is a five year initiative supported by Global Environment Facility(GEF),led by United Nations Environment Programme (UNEP),and implemented by IMPACT in partnership with the Ministry of Mines and Mining Development, the Ministry of Environment, Climate and Wildlife and the Environment Management Agency(EMA).
