By Valentine Alexander 
In a significant move to support Micro, Small, and Medium Enterprises (MSMEs) in Tanzania, Proparco has partnered with CRDB Bank to provide financial guarantees worth €48 million. This initiative aims to enhance access to credit for small businesses, which often struggle to secure funding due to high-risk assessments by financial institutions. The partnership marks a strategic step toward strengthening the MSME sector. The €48 million guarantee will allow CRDB Bank to extend more loans to small businesses while reducing collateral requirements. This means that more entrepreneurs will have the opportunity to grow their businesses and contribute to Tanzania’s economic development.
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 MSMEs, 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 for 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.
Benefits for Small Businesses
Many small businesses in Tanzania face difficulties obtaining loans because they lack the necessary collateral or credit history. With this new financial guarantee, CRDB Bank can offer loans with reduced risk, making it easier for MSMEs to access the capital they need for expansion, inventory purchase, and operational improvements. The initiative is expected to support businesses across various industries, including agriculture, manufacturing, retail, and services. By improving credit access, the partnership will also contribute to increased employment opportunities and overall economic stability.
Proparco’s Commitment to Sustainable Development
Proparco, a subsidiary of the French Development Agency (AFD), focuses on supporting sustainable economic growth in developing countries. This collaboration aligns with its mission to enhance financial inclusion and empower small businesses. Proparco’s Deputy CEO, François de Laage de Meux, highlighted the impact of the partnership, stating, “We are proud to work with CRDB Bank to unlock the potential of Tanzanian entrepreneurs. This initiative reflects our commitment to supporting inclusive and sustainable economic growth.”
A Boost for Tanzania’s Economy
The Tanzanian government has prioritized the growth of MSMEs as part of its economic development strategy. By facilitating access to finance, this partnership supports government efforts to promote entrepreneurship and industrialization. Experts believe that increasing financial support for small businesses will lead to greater innovation and competitiveness in the Tanzanian market. The Proparco-CRDB Bank partnership represents a crucial step toward empowering MSMEs in Tanzania. With €48 million in guarantees, more businesses will gain access to essential financial support, helping them grow, create jobs, and drive economic progress. As Tanzania continues to develop its business ecosystem, initiatives like this will play a key role in ensuring sustainable and inclusive economic growth.
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