EIB Backs New €540m Business Financing In Tanzania

Posted by Eric Ojo African News, Latest Headlines, Sports News Friday, February 24th, 2023

(AFRICAN EXAMINER) – New investment by companies across Tanzania will benefit from €540 million (TSh 1.3 trillion) of new financing backed by the European Investment Bank (EIB), Cooperative and Rural Development Bank CRDB, NMB Bank Plc and KCB-Tanzania.

This was disclosed at the European Union (EU)-Tanzania Forum held in Dar es Salaam earlier today. This is coming as EIB confirms first new engagement in Tanzania in seven years.

The bank’s first engagement in the East African nation for seven years includes expected targeted support for €170 million new investment by female led companies across the country and €100 million investment in blue economy firms.

The dedicated support to blue economy investments represents the largest EIB support for targeted blue economy business financing anywhere in the world.

The new social and development impact of the new initiative will be enhanced by innovative blended financing backed by the EU. This includes enabling first-time borrowers to access finance and more companies to benefit from the scheme.

The new initiative is aligned with the EU Global Gateway’s priorities, including improving access to finance, with a particular focus on women owned or managed businesses and enterprises.

Implementation of the initiative is expected to be enhanced by sharing technical and financial best practice, gender financing and blue economy investment expertise through technical assistance programmes and other financial support backed by the EU through the European Commission’s Africa Investment Platform.

The largest ever business financing engagement by the EIB, the world’s largest multilateral bank was signed by Thomas Östros, EIB Vice President and Abdulmajid Nsekela, Group Chief Executive Officer (CEO) and Managing Director of CRDB Bank, Aziz Chacha, NMB Bank’s Treasurer and Cosmas Kimario is KCB Group Regional Businesses Director and Managing Director KCB Bank Tanzania in the presence of H.E. Dr Hussein Ali Mwinyi.

EIB Vice President, Thomas Östros said the bank is pleased to return to Tanzania and confirm its largest ever support for targeted investment by entrepreneurs and businesses across the country.

According to him, the new business financing cooperation between the EIB, CRDB, NMB and KCB will unlock €540 million of new investment by Tanzanian business, including female led companies and blue economy firms.

“The new business financing confirmed today in Dar es Salaam demonstrates the close cooperation between Tanzania and European partners to ensure that Tanzanian companies can expand, create skilled jobs and explore new business opportunities in the years ahead”, he said.

Similarly, the Group CEO and Managing Director of CRDB Bank, Abdulmajid Nsekela noted that the €150 million EIB loan to CRDB will enhance access to finance by micro, small and medium-sized enterprises across Tanzania, and includes dedicated financing for women-led businesses and blue economy enterprises.

“The EIB backed credit line will support business growth, contribute to gender equality and empowerment of women and enable blue economy companies to invest in a better future. It was an honour to enable Vice President Östros and his colleagues to see at first-hand how CRDB’s business clients are creating jobs and developing skills”, he added.

While commending the initiative, the Treasurer for NMB Bank, Aziz Chacha said: “The new €100 million EIB backing for NMB will allow businesses across Tanzania to grow. The dedicated focus on supporting women-owned businesses and advancing investment in the blue economy will harness Tanzania’s full potential and overcome long-standing barriers to investment and job creation”.

KCB Group Regional Businesses Director and Managing Director of KCB Bank Tanzania, Cosmas Kimario observed that KCB Tanzania and the EIB share the same commitment to ensure that Tanzanian companies can access finance and invest in a better future.

“This new €20 million cooperation comes at the right time for businesses here in Tanzania and will enable women-owned businesses to become more efficiency while helping the country to attain an inclusive economy. Also, this fund will boost innovation in harvesting blue economy opportunities for a more sustainable future”, he further explained.

Head of the EU Delegation to Tanzania and the East African Community, Ambassador Manfredo Fanti reassured that the is committed to accelerating private sector development in Africa.

He said the new cooperation between EIB Global, CRDB, NMB and KCB confirmed at the EU-Tanzania Business Forum in Dar es Salaam today will enable Tanzanian companies to invest and create jobs, ensure that companies led by women can expand and allow blue economy firms to create jobs and explore new markets in the years ahead.

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