Access to Finance and Equipment

OUR SOLUTION

Provide access to financial capital and modern mining equipment

The Impact Facility offers mines two of the most important resources they may lack – finance on fair and transparent terms and safe and efficient production and processing equipment.

Access to finance

For many artisanal mines, securing finance is a major challenge. Lending organisations often decline loan requests from mines that may not be registered as businesses, or that lack necessary licenses and permits or recognised assets to serve as a loan security.

Even when a mine successfully secures a loan, interest rates and service fees are usually exorbitant – often more than 20% annually – making it difficult to repay the loan in times of lower production. 

And when formal finance is inaccessible, mines often turn to informal lenders and high-risk loans.

The Impact Facility engages with mines regardless of their status, actively supporting legal formalisation and exploring solutions that provide them with access to capital. We also work with local lending organisations and banks, encouraging them to recognise environmental and social risk data and acknowledge mine formalisation efforts.

Access to production and processing equipment

Inefficient and substandard equipment impacts on mine productivity and profitability and frequently contributes to hazardous living and working conditions. We ensure that mine owners can easily access the modern equipment they need, and in the way that works best for them.

Pay per use :

Mines avoid taking on debt while we maintain control over the investment and can maximise the number of mines that benefit. Pay per use also helps build trust in alternative processing techniques, and between us and the mines.

rental Equipment impact facility

Permanent hire :

Mines are responsible for equipment maintenance, paying a flat fee every two or four weeks. We retain ownership of the equipment to manage our risk exposure, while mines have the flexibility of terminating the engagement with a month’s notice.

lease to purchase agreements impact facility

Lease :

Mines which demonstrate a high level of organisational governance and financial accountability qualify for our leasing schemes. We help mines select, order, ship and install equipment. After making down payments, the mine gains full ownership. 

The hub and spoke approach to resource efficiency

We maximise resource-spend by clustering bigger and smaller mines together into service hubs. By working at the highest possible capacity, costs for services and equipment can be kept as low as possible.

As partner mines mature and require less capacity development and training, hubs are continuously scoped out for further expansion. Making it possible to maintain an on-the-ground presence even if mines graduate from an initially basic performance level.

“The investment-led approach spearheaded by the Impact Facility is a game changer in our engagement with the mining community in Migori because it brings the practical angle of mining, apart from the advocacy work we have been doing. It has the potential of helping the mining communities to benefit more from their mining activities through access to better equipment that will enable them to scale their production, reduce and mitigate exposure to risks to their health and to better take care of their own environment.”

Zack Gaya, regional manager, the National Council of Churches of Kenya