CRDB Bank inks €48 million deal with Proparco to boost MSMEs growth in Tanzania

Dar es Salaam. 24th March 2025: CRDB Bank has today renewed its strategic partnership with Proparco, a subsidiary of Agence Française de Développement Group (AFD), by granting new guarantees worth €48 million (equivalent to TZS 143.184 billion) to scale up MSMEs. This collaboration with a trusted long-term partner is designed to drive growth and support high-impact MSMEs across Tanzania, fueling economic development and job creation.

The signing ceremony which involves EURIZ and ARIZ guarantees, each amounting €24 million, took place at the Bank’s headquarters in Dar es Salaam in the presence of H.E. Anne-Sophie Avé, French Ambassador to Tanzania.

Micro, Small, and Medium Enterprises (MSMEs) are the backbone of Tanzania’s economy, contributing more than 27% to the country’s GDP and providing jobs for over 5 million people. Yet, despite their crucial role, access to financing remains a major hurdle. Financial illiteracy and stringent capital requirements are among the key barriers preventing MSMEs from securing the funds they need to grow and thrive.

"Proparco has been CRDB Bank’s key partner since 2022 when we began collaborating to enhance access to capital for micro, small and medium enterprises. We started by supporting entrepreneurs affected by the COVID-19 pandemic, helping them grow their businesses and contribute to the national economy," says Group Chief Executive Officer and Managing Director and of CRDB Bank, Abdulmajid Nsekela, adding:

"CRDB Bank recognizes the importance and contribution of MSMEs to household income and the national economy. We have put in place mechanisms to ensure we reach more entrepreneurs to drive economic growth. Our goal is to direct up to 75% of all loans we issue to this group, as many struggle to grow their businesses due to limited capital."

CRDB Bank has been a cornerstone of Tanzania’s financial sector since its inception in 1996. Being the country’s largest financial institution, CRDB Bank is a key driver of MSME financing, reinforcing its commitment to empowering businesses and fostering economic growth.

Beyond Tanzania, the bank has also expanded its footprint to Burundi and the Democratic Republic of Congo (DRC) with plans afoot to set its presence in Dubai any time soon, strengthening its impact across the region and globally as well.

Proparco and CRDB Bank have built a strong, long-term partnership driven by a shared mission—to empower the private sector across Africa and make them contribute more to their economies and strengthen personal and family income.

In a major step to bolster CRDB Bank’s support for Tanzanian entrepreneurs, Proparco has provided two new guarantees, ARIZ and EURIZ, each valued at €24 million, bringing the total to €48 million. This initiative will unlock greater access to financing, fostering business growth and economic resilience in Tanzania.

The new agreement will be dedicated to projects within high impact sectors such as education, health, agriculture and energy, with a focus on women, youth and marginalized groups.

The EURIZ guarantee, backed by the European Union and the Organization of African, Caribbean, and Pacific States (OACPS), aims to unlock new financing for high-impact MSMEs in sectors such as education, agriculture, and healthcare, with a focus on businesses led by women and young entrepreneurs. Meanwhile, the ARIZ guarantee, a risk-sharing tool from the AFD Group, will target MSMEs in trade and services. Together, these two guarantees will drive financial inclusion and empower Tanzanian MSMEs, which are crucial to Tanzania’s economy.

H.E. the French Ambassador to Tanzania, Anne-Sophie Avé, said: “This partnership between Proparco and CRDB Bank exemplifies the strong and dynamic economic cooperation between France and Tanzania. By facilitating access to financing for MSME, especially those led by women, we are fostering inclusive growth and empowering the next generation of Tanzanian entrepreneurs. France remains committed to supporting Tanzania’s economic development by strengthening key economic institutions and promoting sustainable investments that create jobs and will drive long term prosperity.” Jean Guyonnet-Dupérat, Proparco’s Regional Director for East Africa, said: “Promoting access to finance for small and medium enterprises by collaborating with a leading commercial bank like CRDB is one of the best ways for Proparco to support the real economy in Tanzania. We're grateful for CRDB's renewed trust and will continue to support the bank's initiatives in favor of businesses, job creation and economic development.”

Sebastian Schaber, European Union Representative in Tanzania, said: “Micro, Small, and Medium Enterprises are vital to Tanzania's economy, providing employment for millions, and driving economic growth. Proparco’s guarantees to CRDB, backed by the European Union, will further contribute to enhanced access to finance of Tanzanian entrepreneurs. With partners like Proparco, the European Union reaffirms its commitment to fostering economic inclusivity, with a focus on women-led and youth-led businesses.