Small-scale miners seek relaxed collateral requirements



COMMERCIAL Banks should relax collateral requirements needed for small scale miners to access funds as this will help with capital injection, thereby positively
contributing to the economy.

This is according to the Federation of Small Scale Mining Association of Zambia (FSSMAZ) president, Joseph Mwansa.

Pastor Mwansa emphasised that small scale miners were struggling financially as they were unable to access capital needed for their businesses.

“The issue of the bank asking for collateral is really putting the small scale miners in a corner and making them not to function. Most of small scale miners do not have collaterals.

“These banks that we have in Zambia are unrealistic and unfair, how do we improve the mining sectors without capital?” he asked in an interview.

Pastor Mwansa said that affordable financing was also critical in helping small scale miners to busy machinery for their businesses.

Small scale miners, he said, owned by Zambian lacked machinery and that it was difficult to improve business without the required machinery.

“Small scale mining in Zambia is an economical vehicle of our nation which can help to lift the standard of our people, Small scale miners in Zambia are facing big challenges which
are like mountains that we are failing to level. “Lack of machinery is another issue in the mining sector this a sector that is supposed to change the picture and the economy of our
nation,” Pastor Mwansa said. He expressed optimism that heavy investment in the mining and agriculture sectors could drastically transform the Zambian economy.

Pastor Mwansa emphasised that mining played a big role in bringing the forex in the country and creates jobs, saying it was a tool that could be used to build economy. “If we were to
change our economy we should look at three things, mining sector, Agriculture and tourism if we can manage these three things our nation will be transformed,” he said.


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