The Lake Victoria Gold Programme
Mine Your Own Business – bridging the gap to formal finance through access to capital and equipment appropriate to the needs of AMPs
Across the artisanal and small-scale mining (ASM) development sector, a consensus is growing that artisanal mineral producers (AMPs) require access to financing to progress from hazardous health and safety conditions and poor environmental management practices. Formal financial institutions are not providing investment into the sector, given the sector’s informality, a general lack of business management controls, and its association with hazardous working conditions. Consequently, AMPs resort to expensive, informal financing, if accessible, often keeping them from retaining any significant profit from their operations.
Having launched an equipment leasing venture committed to expanding across the region, The Impact Facility is helping to bridge the gap between AMPs and formal finance.
Developing scalable and replicable, blended-finance solutions
The LVGP comprises the totality of The Impact Facility’s work across Kenya, Uganda, and Tanzania. At its core, this constitutes ‘Project Access’, the consortium programme financed by the European Partnership for Responsible Minerals (EPRM) focused on the professionalisation of ASGM across Kenya and Uganda, running until the end of 2024. As well as, ‘Realising the Potential of ASGM Trade’ in Tanzania led by our strategic partner Solidaridad with financing from the Dutch government. TIF’s work is further made possible through the support of Genesis Charitable Trust (GCT) as well as the backing of private impact investors financing the provision of lease equipment.
Equipment Investments into ASGM
Investments in higher productivity and more efficient processing technology are key to unlocking the economic potential of AMPs. Most mines that receive external investment do so under often questionable terms. Offering miners transparent and market-rate-based financing options, The Impact Facility aims to retain more value with the AMPs and enable machine ownership over time.
The eligibility for investments is determined based on an AMPs ESG performance, incentivising continuous improvement in order to unlock additional investments. The terms of our Lease-to-Purchase agreements have been designed to accommodate the realities on the ground, boasting grace periods, market-rate interest rates, and optional payment breaks to ensure that AMPs successfully pay off their leases and attain ownership over the machines.
To learn more about our approach to investing in ASGM, please find here: