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Proparco and CRDB Bank are considering the deployment of 3 new guarantee schemes to support financing for high-impact MSMEs in Tanzania
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• On the occasion of the Africa Forward Summit, organized by France and Kenya in Nairobi on May 11–12, Proparco, the French development finance institution, and CRDB reaffirm their commitment to financing high-impact micro, small and medium-sized enterprises (MSMEs) in Tanzania.
• The two institutions are taking a further step in their partnership through the signing of two letters of intent aimed at establishing:
- two €25 million portfolio guarantee facilities, co-developed with the European Union
- a €40 million trade finance guarantee, designed to support the development of Tanzania’s entrepreneurial ecosystem.
A leading player in the Tanzanian and regional financial ecosystem
Active for 30 years, CRDB Bank Plc has established itself as a leading player within the Tanzanian and regional financial ecosystem. As the country’s leading institution, it plays a key role in financing local SMEs and beyond, being active in Burundi and the Democratic Republic of Congo (DRC) with the ambition to continue its expansion into East Africa.
A strategic repositioning in favor of MSMEs, supported by Proparco
Initially positioned on the large corporate segment, CRDB Bank Plc has gradually oriented its strategy towards micro, small and medium-sized enterprises (MSMEs), which are largely underfunded in Tanzania (less than half have access to formal funding, even though they account for 50% of national employment). A strategic evolution supported by Proparco and the European Union in 2025 through the provision of EURIZ and ARIZ guarantees.
Three complementary guarantee instruments to accelerate financial inclusion for high socio-economic impact MSMEs
In this context, Proparco and CRDB aim to strengthen their strategic partnership through two new IMPACT+ portfolio guarantees, co-constructed with the European Union, for a combined maximum amount of €50 million, as well as a €40 million Trade Finance guarantee.
The first portfolio guarantee would help ease access to financing for SMEs across all sectors. The second would facilitate access to credit for MSMEs operating in high-impact sectors, as well as for the most underserved MSMEs.
Finally, CRDB will become the first East African bank to join Proparco’s Trade Finance Program. As an issuing bank, CRDB will benefit from a €40 million Trade Finance Guarantee to support the financing of imports and international trade transactions for its clients in Tanzania. The bank will also join the program as a confirming bank, in order to support and secure international trade operations carried out by African banks already participating in the facility, and eventually by regional banks expected to join the program in the future.
These three complementary guarantees will help improve access to financing for local MSMEs, particularly women-led and youth-led businesses, as well as companies operating in sectors considered riskier such as agriculture and healthcare. This partnership will also contribute to strengthening regional trade flows.
Françoise Lombard, Chief Executive Officer of Proparco:
“This renewal of guarantees is part of the trust-based relationship established with CRDB Bank Plc and reflects our shared commitment to supporting, over the long term, entrepreneurs and small and medium-sized enterprises that remain underfinanced.”
“We are proud to deepen our partnership with Proparco and the European Union through these transformative guarantee schemes, which will unlock greater access to finance for MSMEs across Tanzania and the wider East Africa region. At CRDB Bank Plc, we firmly believe that MSMEs are the engine of inclusive economic growth, job creation, and innovation, and empowering them is central to our vision for sustainable development,” said Abdulmajid Mussa Nsekela, Group Chief Executive Officer and Managing Director of CRDB Bank Plc. “These facilities will significantly strengthen our ability to support women and youth-led enterprises, as well as businesses operating in high-impact sectors such as agriculture, healthcare, and trade. Beyond expanding financial inclusion, this collaboration reflects our shared ambition to accelerate regional trade, strengthen resilient businesses, and drive sustainable prosperity across East Africa,” he added.
The signing of these Letters of Interest reflects Proparco’s confidence in CRDB Bank Plc’s ability to support sustainable and inclusive growth in Tanzania.
The IMPACT+ program, implemented by Proparco under the EU’s EFSD+ instrument, helps unlock new financing for small and growing businesses in Africa, Asia and the Middle East, especially those that struggle to access credit. By encouraging financial institutions and investors to support entrepreneurs, the programme strengthens local value chains, promotes employment and economic inclusion, and expands opportunities in underserved markets. As part of the EU’s Global Gateway strategy, IMPACT+ supports sustainable and low carbon growth by boosting private investment where it can have the greatest positive impact, helping businesses innovate, become more resilient to climate change, and contribute to long term social and economic development.
