It’s sad that mining companies owned by local players have most of their loan applications rejected, yet the industry has shown potential to be Rwanda’s number one foreign exchange earner.
The bankers I have talked say that local mining companies don’t know how to write convincing loan applications.
But the miners think that the bankers are simply skeptic due to the long term nature of the extractive industry.
All in all, trust between both parties is important, otherwise, the mining industry will stay in the hands of foreign investors and there will be no significant benefit for local investors.
Reaction to the story, “Pressure on banks to cut interest rates” (The New Times, February 18)