Development finance institutions British International Investment (BII) and Norfund have provided a combined $80 million financing package to NMB Bank to expand lending to micro, small and medium-sized enterprises (MSMEs) and agricultural businesses in Tanzania.
The facility includes $50 million from BII and $30 million from Norfund and is evenly split between U.S. dollars and Tanzanian shillings.
Supporting Inclusive Growth
Chris Chijiutomi, Managing Director and Head of Africa at BII, said: “This latest commitment builds on our enduring partnership with NMB Bank since we invested in NMB’s Jamii Sustainability Bond in 2023. By providing and mobilising long-term, stable capital to MSMEs and agricultural businesses, BII is supporting Tanzania’s inclusive and resilient growth with NMB Bank’s continued efforts to provide more tailored, accessible financing solutions to underserved businesses across the country.”
William Nyaoke, Regional Director for East Africa at Norfund, added: “Strengthening access to finance for Tanzania’s MSMEs and agricultural enterprises is essential for creating jobs, unlocking productivity, and building resilient local value chains. This commitment ensures that more entrepreneurs and farmers can invest, grow, and support their communities.
Related: BII pledges £1.07bn to Africa in 2025
Empowering Entrepreneurs and Farmers
The funding is intended to increase access to credit for entrepreneurs and agricultural producers, supporting employment, local value chains and food security across the country. MSMEs and agriculture remain central to Tanzania’s economy, accounting for a significant share of employment and economic activity.
The financing is aimed at helping underserved businesses and farming communities access longer-term capital. As the partnership unfolds, it’s likely that NMB Bank will face challenges in balancing the needs of various stakeholders, from entrepreneurs to farmers, while ensuring the sustainability of its lending practices.
Ruth Zaipuna, Managing Director and CEO at NMB Bank, commented: “At NMB Bank, we are committed to empowering Tanzania’s MSMEs and agricultural sector, which are vital drivers of our economy. This partnership with British International Investment and Norfund will enable us to expand access to finance, create jobs, strengthen local value chain and support sustainable growth for entrepreneurs and farmers across the country.
According to the report, the partnership between BII, Norfund, and NMB Bank is expected to have a positive impact on Tanzania’s economy, particularly in the MSME and agricultural sectors. The document states that the funding will help address the financing gap faced by these businesses, promoting economic growth and development in the region.
