Zim banks shut out small miners despite gold boom in Zimbabwe

Banks remain reluctant to fund Zimbabwe’s artisanal gold miners despite their dominant role in national production, with the informal sector generating three-quarters of output but struggling to secure loans due to registration gaps and collateral shortages.

Small operators delivered 24.45 tons through September, representing 67 percent growth from the previous year, while major mining companies saw deliveries decline to 8.54 tons from 9.55 tons during the same period. Stewart Makenga from NMB Bank told a conference that lenders hesitate because they must protect depositor money and need assurance that borrowers follow legal requirements. His institution works with buying agents and cooperatives rather than individual miners after direct lending attempts resulted in widespread defaults.

Mining consultant Kundai Chikonzi said operators discard receipts and maintain poor financial records while banks misunderstand production cycles that prevent fast repayment. Payne Kupfuwa from the Young Miners Federation proposed that government agencies should guarantee loans for emerging miners who lack assets. Participants agreed that bringing informal operations into regulated frameworks remains essential for unlocking capital access and transforming small operations into commercially viable enterprises that boost national development.