Tanzania: Proparco invests in NMB Bank’s social bond

Proparco subscribed to TZS 49.3 billion (approximately $20 million) of this social bond, issued by NMB Bank, one of Tanzania’s two leading banks. The securities, initially placed privately, have since been listed on the Dar es Salaam Stock Exchange.

This marks Proparco’s first bond subscription in East Africa in local currency. The proceeds will enable NMB to fund projects focused on food security and affordable housing—a crucial need in a country where, despite solid GDP growth , a large share of the population still lives below the poverty line.

The transaction reinforces the strategic partnership between Proparco and NMB Bank and contributes to developing Dar es Salaam as a regional financial hub. It aligns closely with Proparco’s priorities of reducing inequalities and fostering sustainable, resilient development, particularly in countries with fragile contexts.

In a country where only 20% of micro, small, and medium-sized enterprises (MSMEs) have access to formal financing, this bond will improve credit availability for these businesses, the main beneficiaries of the funds. It will thus strengthen Tanzania’s entrepreneurial ecosystem, supporting the French Choose Africa initiative, which aims to accelerate the growth and visibility of small and medium-sized enterprises across the continent. 

For Proparco’s Head of Debt, Emmanuelle Riedel Drouin: “We are proud to partner with NMB Bank in this landmark transaction. Through our investment in NMB’s Social Bond, Proparco is supporting a leading Tanzanian institution while contributing to the deepening and strengthening of Dar es Salaam’s financial center. This partnership will allow NMB to expand financing for high-impact projects, particularly in the areas of food security and affordable housing. Together, we are committed to promoting investments that deliver tangible social benefits for communities across Tanzania.”