NMB Bank PLC has secured $80 million in financing from two European development finance institutions — British International Investment and Norfund — to expand lending to micro, small and medium-sized enterprises and agricultural businesses in Tanzania.
The facility is split between $50 million from British International Investment and $30 million from Norfund, with the total structured evenly between US dollars and Tanzanian shillings. The dual-currency arrangement is designed to reduce foreign exchange risk for borrowers while supporting access to credit for entrepreneurs and agricultural producers. The investment is intended to strengthen value chains, support employment and improve food security across Tanzania.
MSMEs and agriculture are critical pillars of Tanzania’s economy, accounting for the majority of employment and a significant share of GDP. By directing capital into these two sectors, the facility is structured to deliver development impact at scale, reaching businesses and communities that have historically had limited access to formal finance.
Ruth Zaipuna, Managing Director and CEO of NMB Bank, says the partnership will enable the bank to expand access to finance, foster innovation, create jobs, strengthen local value chains and support sustainable growth for entrepreneurs and farmers across the country.
This latest commitment from British International Investment builds on an earlier partnership with NMB Bank that began when BII invested in NMB’s Jamii Sustainability Bond in 2023. Chris Chijiutomi, Managing Director and Head of Africa at BII, says the facility is intended to provide and mobilise long-term, stable capital to MSMEs and agricultural businesses, supporting Tanzania’s inclusive and resilient growth.
William Nyaoke, Regional Director for East Africa at Norfund, says strengthening access to finance for Tanzania’s MSMEs and agricultural enterprises is essential for creating jobs, unlocking productivity and building resilient local value chains. He adds that the commitment ensures more entrepreneurs and farmers can invest, grow and support their communities.