Women mineral dealers want licenses to guarantee bank loans

The Tanzania Women Miners Association (TAWOMA) has asked the government to reconsider approval of mining licenses to be accepted by banks as guarantee for enabling small scale miners and mineral dealers secure loans from domestic financial institutions.

Speaking to this reporter soon after receiving a donation of 5m/- from Geita Gold Mine (GGM) in Dar es Salaam on Friday, TAWOMA chairperson, Eunice Negele complained that a lot of home-based financial institutions are relentlessly hesitant at providing loans to women miners.

``I personally have been going to some of the banks around asking for loans without success, these banks do not issue loans to mineral dealers for their own reasons``, she said.

However, it is known that banks are reluctant to extend loans to small scale miners and mineral dealers for lack of collateral while their activities are very risky.

Although mining is one of the most lucrative business, it would help a lot of women dealers if the government would allow mining licenses be used as guarantees against prospective borrowers as part of a strategy to help fight poverty in the country.

There are two types of licenses, namely prospective and primary mining license which are issued to mineral dealers.

She also implored government to encourage establishment of mineral cutting and polishing plants in the country to enable country reap more from its mineral wealth through value addition processes.

Negele observed that cutting minerals such as tanzanite locally would minimise smuggling, create employment for local people and make the industry contribute immensely to the Treasury through increased tax revenue.

Speaking earlier, the GGM Country Manager Hatibu Senkoro, urged the Association to spend donation on intended objectives, promising that GGM would continue to extend support to the organisation as when needs arise in order to improve the lives of small women miners.

TAWOMA aims to organise a nationwide meeting later on this year at which various development issues concerning small scale mining and women participation in the industry would be discussed at lengths.

�Since they are doing almost similar activities like ours, we are ready to support them in various aspects�, he said.

Apart from Tawoma donation, the GGM early this month donated more than 67m/- to six organisations dealing with HIV/Aids.

Beneficiary organisations were Universal Empowerment Trust Fund, Islamic Foundation for Qur�anic Teachers in Colleges, Schools and Streets in Tanzania, Tanzania League of the Blind, St Gertrude Ilimiwaha, Tanzania Association of Disabled and Chaplaincy Kilimanjaro Christian Medical Center.

GGM supports health activities as one of its priority area on social development. Basically, the company gives more weight on priority areas such as health, including HIV/Aids, education, and community development.

* SOURCE: Guardian