Norfund, BII commit US$80 million to NMB Bank for Tanzania SMEs and agriculture
Financing will target MSMEs and agricultural businesses across Tanzania
TANZANIA – Norfund has committed US$30 million to NMB Bank as part of a financing arrangement to increase lending to small businesses and agricultural enterprises in Tanzania.
The package also includes an additional US$50 million from British International Investment, bringing the total value of the facility to US$80 million.
The institutions said the funding will be issued in both US dollars and Tanzanian shillings to allow wider access for domestic businesses while reducing exposure to foreign exchange fluctuations that often affect borrowers operating in local markets.
The investment comes as many businesses in Tanzania continue to face difficulties accessing credit, with available figures showing that only 16% of firms in the country can obtain loans or other forms of financing through formal financial institutions.
Focus on MSMEs and farming sector
According to the parties involved, the financing arrangement is intended to expand lending to micro, small, and medium-sized enterprises alongside agricultural businesses, sectors that remain among the country’s largest sources of employment and income generation.
Judy Kinyanjui, investment director at Norfund, said access to financing remains necessary for Tanzania’s MSMEs and agricultural enterprises because it allows businesses to increase production, create employment opportunities, and strengthen local supply networks.
Kinyanjui added that the partnership between Norfund, British International Investment, and NMB Bank is expected to help more entrepreneurs and farmers secure the capital needed to expand their operations and support economic activity within their communities.
Lending through branch network
Meanwhile, NMB Bank said its branch presence across urban centres and rural regions places the lender in a position to distribute the funds to businesses that have traditionally struggled to obtain long-term financing from commercial institutions.
The investment also forms part of Norfund’s broader efforts to increase financial inclusion and support private-sector growth across sub-Saharan Africa through partnerships with local financial institutions.
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