WASHINGTON, May 7, 2015—The World Bank Group’s Board of Executive Directors approved today a new US$45 million credit for Tanzania to improve the socioeconomic impacts of large and small-scale mining for the country and people. It will also help increase private, local, and foreign investments.
“This project shows the World Bank's commitment to support Tanzania’s efforts to allocate mining resources equitably, especially to the poorest through a focus on artisanal and small-scale mining," said Philippe Dongier, the World Country Director for Tanzania.
The additional financing will build on the success of the ongoing Sustainable Management of Mineral Resources Project (SMMRP) which has strengthened government capacity to manage the sector, improved the regulatory framework, expanded the country coverage by geological surveys and enhanced the social and environmental management framework for mining. The new financing will support the goal of poverty-reduction in Tanzania through the development of a viable domestic mining industry and spreading its benefits to poor areas where artisanal and small-scale mining (ASM) takes place.
Tanzania’s rich mineral endowment has long been considered a potential source of growth and poverty reduction. Encouraging the formalization and sustainable development of ASM will help boost local entrepreneurship and employment in mining.
“Today’s additional financing builds on these achievements and supports the government’s effort to transform mining activities into economic growth with benefits that can be shared by all Tanzanians, particularly in rural areas,” said Mamadou Barry, the World Bank Task Team Leader for the Project.
Scaling up the original project would help identify suitable geological areas for artisanal miners, train and establish demonstration centers for ASM to improve knowledge in faceting, carving and jewelry, and finally boost marketing and financial access.
The project will focus on the technical, financial, organizational and environmental constraints of ASM through a partnership arrangement for enhancing co-operation between artisanal and industrial miners and through effective integration of corporate social responsibility functions of industrial mining companies into the budget planning processes of local government.