Tanzania's Mining Commission and CRDB Bank signed a special agreement on February 23 to open formal credit lines to the country's small-scale mining sector, a move that produced an immediate TZS 50 billion loan to the Songwe Gold Family Group — the largest single disbursement to artisanal miners in the country's history.

The framework introduces an alternative collateral model that, for the first time in Tanzania's banking sector, accepts mining-related assets as security for loans. Valid mining licenses, gold sales contracts, and stored gold held at refining facilities can all now be pledged, removing one of the principal barriers that kept small-scale operators out of formal finance.

The deal comes as small-scale miners have grown to account for roughly 40% of Tanzania's gold output, up from approximately 4% in earlier years. The mining sector as a whole generates 56% of the country's foreign exchange earnings and contributes around 10.1% to GDP, equivalent to roughly TZS 2.1 trillion. Tanzania has accumulated more than 16 tonnes of gold in central bank reserves since purchasing began in 2024, and geological mapping now covers 97% of the country, though detailed and high-resolution surveys lag at 24% and 16% respectively.

"I invited all banks not to shy away from the mining sector," said Minister Anthony Mavunde during the signing ceremony. "Today is the third time I am being invited to witness support" for small-scale miners. CRDB's Dr. Donald Mmari said the bank aims to "strengthen and formalise the sector's value chain, while aligning with environmental, social and governance standards."

The agreement signals a broader shift in how Tanzania's financial system engages with artisanal mining, a segment long considered too informal for conventional lending. For miners, access to formal credit could accelerate the adoption of modern equipment and safer extraction methods. For CRDB, the arrangement opens a high-growth lending category backed by tangible commodity assets. Deputy Permanent Secretary Msafiri Mbibo noted that improved financing access would support "safer mining practices, wider adoption of modern technology."

With gold prices remaining elevated and Tanzania's artisanal output rising, the financing model could serve as a template for other commercial banks looking to enter the sector.