FMO, the Dutch entrepreneurial development bank, recently arranged a USD 125 mln senior loan facility for its long-term customer NMB Bank in Tanzania. The senior loan is provided in partnership with French Development Finance Institution, Proparco, contributing USD 50 mln to the total facility and will be used for financing MSMEs, women owned- and agri-businesses. The facility demonstrates FMO and Proparco’s commitment to driving Tanzania’s growth in partnership with solid local institutions.
NMB is one of the leading banks in Tanzania with an extensive rural outreach and has been an FMO client since 2013. As a frontrunner in the gender finance space, NMB was the first African bank to issue a gender bond in early 2022. The new financing arranged by FMO qualifies for the 2X Challenge – a global initiative designed to support businesses that provide women in emerging economies with access to leadership opportunities, quality employment, and products and services that enhance their economic participation and inclusion – thereby demonstrating NMB’s commitment to promoting financial inclusion in Tanzania. Alongside financing, FMO and Proparco will also be supporting NMB with technical assistance to enhance the bank’s environmental & social risk management practices.
Marnix Monsfort, Director Financial Institutions of FMO, said: “We are very excited about this opportunity to continue our collaboration with NMB, a valued client and leader in inclusive finance. We are looking forward to deepening this relationship and to supporting NMB in its endeavours, with not just financial support but also capacity development in environmental, social, and governance practices.”
Francoise Lombard, CEO of Proparco, said: “Proparco is pleased to renew its long-standing collaboration with NMB, a leading bank in Tanzania, to support the local private sector and thus financial inclusion of MSMEs, women-owned businesses and agribusinesses in the country.”
Aziz Chacha, Treasurer of NMB Bank, said: “We are delighted to further our cooperation with FMO and Proparco. This financing demonstrates the confidence that these institutions have in NMB Bank and showcases the bank’s growing status as a trusted partner in the drive of accessible and sustainable finance for all. Via this new facility, we believe the funding will have a great impact on the country’s MSMEs, women owned businesses and Agri-business that employs close to 70 percent of the Tanzanian population.”
“The partnership has come at the right time and will contribute to increasing access to affordable financing to MSMEs, women owned- and agri-businesses and progress the overall country’s economic and social development agenda,’’ added Aziz Chacha.
About Proparco
Proparco is the private sector financing arm of Agence Française de Développement Group (AFD Group). It has been promoting sustainable economic, social and environmental development for over 40 years. Proparco provides funding and support to both businesses and financial institutions in Africa, Asia, Latin America and the Middle East. Its action focuses on the key development sectors: infrastructure, mainly for renewable energies, agribusiness, financial institutions, health and education.
Its operations aim to strengthen the contribution of private players to the achievement of the Sustainable Development Goals (SDGs) adopted by the international community in 2015. To this end, Proparco finances companies whose activity contributes to creating jobs and decent incomes, providing essential goods and services and combating climate change. For a World in Common.
For further information: www.proparco.fr and @Proparco
About NMB
NMB Bank Plc. (“NMB”) is a full-service commercial bank incorporated in the United Republic of Tanzania. Through its 3 main business divisions: Retail, Wholesale, and Treasury, NMB provides a suite of financial services and products to Retail customers, SMEs, Corporates, institutions and the Government. The bank has 228 branches and more than 750 ATMs across the country. NMB has over 6 million customers and employs over 3,400 staff. The Bank is listed on the Dar es Salaam Stock Exchange in Tanzania.
