Team Europe FMO and Proparco support Tanzanian private sector growth through $125 mln to NMB Bank
FMO, the Dutch entrepreneurial development bank, recently arranged a USD 125 mln senior loan facility for its long-term customer NMB Bank in Tanzania.
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.