At a Glance
- Proparco anchors NMB’s first major local-currency social bond in Tanzania’s capital markets.
- Bond proceeds target food security, affordable housing and wider MSME credit access.
- Transaction boosts Dar es Salaam’s profile as a regional sustainable finance hub.
Harare-based NMB Bank, part of NMBZ Holdings Limited, has raised Tsh146.6 billion ($60 million) through a Proparco-backed social bond aimed at financing affordable housing and strengthening food security across the country.
The Tsh146.6 billion ($60 million) bond, one of Tanzania’s largest impact-driven local-currency issuances, underscores growing investor demand for social finance instruments in East Africa while strengthening Dar es Salaam’s capital markets.
Proparco, the private-sector arm of France’s development agency, subscribed TZS 49.3 billion ($20 million), marking its first local-currency bond investment in the region.
Proparco anchors Tanzania’s social bond market
The bond was initially placed through a private offering before being listed on the Dar es Salaam Stock Exchange, reinforcing efforts to deepen liquidity and expand domestic debt markets.
Proceeds will be channeled toward projects addressing two of Tanzania’s most pressing challenges, limited access to affordable housing and persistent food supply gaps, despite years of steady economic growth.
A significant share of the population remains below the poverty line, while demand for housing continues to outpace supply.
How NMB’s social bond targets food security, housing
The transaction is also expected to improve access to credit for micro, small and medium-sized enterprises (MSMEs), which account for the majority of businesses in Tanzania.
Currently, only about 20 percent of MSMEs have access to formal financing, constraining growth and job creation.
Why the bond strengthens Dar es Salaam’s capital markets
For Proparco, the deal strengthens a long-standing partnership with NMB Bank and aligns with its mandate to promote inclusive development and reduce inequality.
The bond also supports France’s Choose Africa initiative, which targets expanded financing for African SMEs.
Beyond its social impact, the issuance positions Dar es Salaam as an emerging regional hub for sustainable finance, demonstrating how domestic capital markets can mobilize funding for high-impact development without increasing foreign-currency risk.
