Finance remains key challenge to Rwanda’s mining sector

Rwanda's mining sector has shown remarkable growth over the years, becoming a significant contributor to the country's economy. However, one of the key challenges facing the sector is the lack of adequate funding from banks and financial institutions. In a recent exclusive interview with CNBC Africa, Yamina Yaritani, the CEO of Rwanda Mines, Gas, and Petroleum Board, shed light on the sector's progress and outlined the strategies being implemented to address the finance issue. The transcript of the interview revealed that in the last financial year, the mining sector received only 135 million Rwanda francs in financing from banks, highlighting the urgent need for increased investment. Yaritani discussed the sector's positive trajectory, citing a steady increase in export revenues from 2017 to 2020, with a slight dip in 2020 due to low international market prices for key minerals like tin, tungsten, and tantalum. However, 2021 has seen a rebound in revenues, driven by improved prices for these minerals and the focus on value addition. The sector has made significant strides in enhancing value addition through the establishment of a tin smelter, a gold refinery, and the upcoming launch of a tantalum refinery. Yaritani also highlighted the sector's exploration efforts and the potential of rare earth minerals and lithium to contribute to future revenue growth. The interview further delved into the sector's consolidation efforts, emphasizing the importance of professionalization and enhancing mineral recovery rates. Yaritani discussed the ongoing exercise of consolidating small-scale miners into investment groups and partnering with larger mining companies to ensure sustainable growth and community engagement. The interview also touched on the challenges of acquiring technology for increasing mineral recovery rates and the need for customized solutions tailored to Rwanda's mineral landscape. Yaritani provided updates on the gold refinery and tantalum refinery projects, indicating progress and operational success. The interview concluded with a focus on the sector's financing challenges and the efforts to de-risk the mining industry to attract more investment. Yaritani highlighted the importance of generating credible exploration data to present to financial institutions and establish the sector as a viable investment opportunity. Moving forward, the mining sector in Rwanda aims to overcome financial barriers, enhance exploration efforts, and drive sustainable growth through strategic partnerships and value addition initiatives.