Proparco has renewed its strategic partnership with CRDB Bank Plc, Tanzania’s largest financial institution. The partnership includes two new guarantees worth €24 million each, totaling €48 million. The initiative aims to support high-impact Micro, Small, and Medium Enterprises (MSMEs) across Tanzania, boosting economic growth and job creation.
The signing ceremony took place in Dar es Salaam. Present were H.E. Anne-Sophie Avé, French Ambassador to Tanzania; Jean Guyonnet-Dupérat, Proparco’s Regional Director for East Africa; Abdulmajid Nsekela, Group Managing Director and Chief Executive Officer of CRDB Bank Plc; and Sebastian Schaber, EU Representative in Tanzania.
MSMEs are vital to Tanzania’s economy. They contribute 27% of the GDP and employ over 5 million people. Despite this, financing remains a major challenge. The Bank of Tanzania cites limited guarantees and stringent capital requirements as major barriers.
CRDB Bank, established in 1996, has been a cornerstone of Tanzania’s financial sector. It provides crucial SME financing and has expanded its operations to Burundi and the Democratic Republic of Congo.
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Proparco’s support includes two guarantees, ARIZ and EURIZ, each valued at €24 million. The EURIZ guarantee, backed by the European Union and OACPS, supports high-impact MSMEs in sectors like education, agriculture, and healthcare. It focuses on businesses led by women and young entrepreneurs. The ARIZ guarantee, from the AFD Group, targets MSMEs in trade and services.
H.E. 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 MSMEs, we are fostering inclusive growth and empowering the next generation of Tanzanian entrepreneurs. France remains committed to supporting Tanzania’s economic development. This is by strengthening key economic institutions and promoting sustainable investments that create jobs and drive long-term prosperity.”
Jean Guyonnet-Dupérat 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 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.”
The partnership between Proparco and CRDB Bank aims to strengthen MSMEs, create jobs, and drive economic growth in Tanzania.