Unlocking Finance for Artisanal Miners: planetGOLD Zambia Unveils Financial Flow Model

On 5th March, the planetGOLD Zambia Project convened a round table discussion aimed at unlocking sustainable financing solutions for Zambia’s Artisanal and Small-Scale Gold Mining (ASGM) sector and exploring a proposed financial flow model designed to improve miners’ access to finance, connect them to formal and legal gold markets and promote responsible mining practices.

The meeting brought together representatives from the Ministry of Mines and Minerals Development, the Bank of Zambia, the Zambia Revenue Authority, the Zambia Environmental Management Agency and financial institutions. The dialogue focused on building partnerships with financial institutions and developing financial products tailored to the needs of Artisanal and Small-Scale Gold Miners.
In her remarks, National Project Manager Ms. Abigail Mwailenge introduced the project and its broader vision of transforming the ASGM sector into a formal, environmentally responsible and economically viable industry. She outlined four key thematic areas guiding the project’s implementation; advancing formalisation, increasing access to finance, promoting the uptake of mercury-free technologies and strengthening knowledge sharing and communication.
Presenting the proposed financial flow model, Ms. Mwailenge explained that the initiative seeks to integrate Artisanal and Small-Scale Gold Miners into formal financial systems and markets. She said the model places miners at the centre by improving their access to finance, skills training and structured market channels while promoting responsible mining practices such as reducing mercury use and encouraging formalisation.
She further explained that the model is a revolving fund mechanism that works like a community money pool that continues circulating to support more miners over time.
The mechanism is supported by a risk-sharing approach in which miners’ collateral covers part of any potential loss, the project’s guarantee fund absorbs another portion and participating financial institution take on the remaining risk. If miners repay successfully, the money continues revolving within the system, allowing more artisanal miners to gradually access financing while all partners share responsibility for sustaining the fund.

She further highlighted that under this model, financial institutions provide loans, savings and asset financing, enabling miners to establish formal banking relationships and access capital for growth. Formal markets, including entities like ZCCM-IH and Bank of Zambia (BoZ), purchase traceable gold, creating legitimate and transparent trade channels. Statutory bodies such as Ministry of Mines and Minerals Development (MMMD), Zambia Revenue Authority (ZRA) and National Pension Scheme Authority (NAPSA) ensure regulatory oversight, facilitating tax collection and social contributions, while cooperating partners support miners through skills training, financial literacy programmes, and capacity-building initiatives, collectively fostering a more responsible and economically empowered ASGM sector. 
However, she noted that even miners who have formalised their operations still face significant barriers when attempting to access commercial financing. The round table also highlighted the project’s broader environmental and development goal of reducing mercury use by 1.14 metric tonnes while promoting responsible and compliant mining practices.
Delivering remarks on behalf of the Ministry of Mines and Minerals Development, Mr. Joshua Nabuyanda from the ministry’s Artisanal and Small-Scale Mining (ASM) Department emphasised that improving access to finance is central to transforming the sector. 

The Zambia Environmental Management Agency (ZEMA) also underscored the importance of environmental compliance in mining operations. Representing the agency, Mr. Bruce Simfukwe explained that the financing mechanisms being explored are intended to support environmentally responsible mining practices.
The Bank of Zambia outlined its role in strengthening the gold value chain through the Domestic Gold Purchase Programme. Dr. Danny Kaliba, Acting Director for Foreign Market Operations at the Central Bank, said the programme is designed to support sector formalisation while strengthening the country’s foreign reserves.

The Zambia Revenue Authority highlighted ongoing efforts to improve tax administration within the mining sector. Mr. Saviour Simwanza, Assistant Director for ASM Mining Audit at the authority, explained that ZRA has established a dedicated Mining Directorate aimed at strengthening compliance across the mineral value chain.

Throughout the discussion, stakeholders agreed that governing the ASGM sector requires regulatory clarity, collaborative engagement with financial institutions and deliberate support for formalisation. 
The round table marked an important step toward aligning financial systems and environmental safeguards ultimately unlocking the full potential of Zambia’s Artisanal and Small-Scale Gold Mining sector while promoting responsible mining practices.