African Guarantee Fund in partnership with the ACP-EU Development
Mineral Programme have successfully launched the Zambia Workshop on
financial inclusion for Development Minerals targeting Financial
Institutions that lend to small and medium-sized enterprises (SMEs).
The programme that seeks to improve the management of Development Minerals in Zambia was officially launched by Ministry of Mines and Mineral Development Permanent Secretary (PS) Paul Chanda who said that the Government will continue to encourage investment in the mining sector not only to ensure increased copper production but also exploitation of other minerals, mostly those mined by Artisanal and Small-scale Miners (ASM).
“ASM, has its own peculiarities different from large-scale mining
which require certain capacities to be developed within financial
institutions. I am glad that today we have commenced this process by
conducting training for financial institutions to be able to support the
ASM in development minerals” the PS said.
AGF Capacity Development Officer, Patrick Lumumba lauded the Zambian
government for its commitment towards creating an enabling environment
for the exploration and exploitation of mineral resources necessary for
the economic and social development of the country and the fight against
He noted that AGF shares in Zambia’s Seventh National Development
Plan which fronts job creation and industrialization as both believe
that the development of SMEs is one of the principle solutions to
fostering environmental sustainability, job creation and economic growth
in African countries.
He however observed that although there is a huge potential within
the Development Mineral Sector, SMEs in this sector need to be
facilitated and supported as they have limited access to financing
because of the high risks associated with SME lending.
UNDP Country Director, Mandisa Mashologu pledged UNDP’s commitment
towards supporting Zambia to achieve her sustainable development goals
and Vision 2030 agendas.
Emphasizing the importance of Financial inclusion of small and medium
scale domestic businesses in the Development Minerals sector, Ms.
Mashologu said, “Access to affordable finance will provide entrepreneurs
in the Development Minerals sector with economic security, resulting in
a positive multiplier impact on health, education, poverty, hunger,
inequality, jobs and growth.”
Often mistakenly considered as low-value minerals because of the low
price-to-mass ratio and low commodity prices, development minerals are
unique inputs to the national economic development through
infrastructure development and construction which are key focus areas
for Zambia among other sectors and therefore have the potential to be of
high value in terms of economic development.
About the ACP-EU Development Minerals Programme
The ACP-EU Development Minerals Programme is a
three-year, €13.1 million capacity building programme, which is an
initiative of African, Caribbean Pacific (ACP) Group of States,
coordinated by the ACP Secretariat, financed by the European Commission
and United Nations Development Programme (UNDP) and implemented by UNDP
and the Minstrty of Mines and Minerals Development in Zambia. The
programme is supporting sustainable and inclusive development in the
industrial minerals, construction materials, dimension stones and semi-
precious stones sectors through capacity development of key stakeholders
such as regulatory agencies and local governments; private stakeholders
including small-scale mining enterprises, construction companies,
mining and quarrying associations; as well as training centres,
universities, civil society organizations and community groups. Find out
more here: www.developmentminerals.org
About the Credit Guarantee Facilities
The Credit Guarantee Facilities will be provided by
AGF to financial institutions (FIs) in Zambia, Uganda, Cameroon, Guinea
(Conakry) and Nigeria on the basis of Guarantee Agreements to be entered
with each FI. The guarantee will partially cover the loans provided by
the FIs to the SMEs operating in the Development Minerals sector
(including quarrying, processing, manufacturing and trading in minerals
such as gravel, sand, clay, granite, marble, gypsum, talc and
semi-precious stones) in the five target countries.