Project detail - NMB Bank PLC - NASIRA PORTFOLIO


Status: Approved investment
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The information as disclosed is indicative and provided on an "as-is/as available" basis for general informational purposes only and should not be construed as financial, legal or investment advice, nor as a commitment or an offer to arrange or provide any financing. The final decision to provide financing is subject to the terms and conditions of FMO in its sole and absolute discretion. When providing links to other sites, FMO bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links. The information on proposed investment for high-risk investments is made available in the language relevant to the country or region where the bulk of operations take place. Translations of any information into languages other than English are intended as a convenience for local stakeholders. In case of any discrepancy, the information provided in English will prevail.

Who is our customer

NMB Bank Plc. (“NMB”) is one of the largest commercial banks in Tanzania, providing banking services to individuals, MSMEs, agribusinesses and corporates. NMB has an extensive network of agents, branches and ATMs spread across Tanzania and is enabling access to finance to end clients across the country.

What is our funding objective?

FMO is providing a USD 11 mln NASIRA Risk Sharing Facility (with a possibility to top-up to USD25million within 1 year of effectiveness). The facility will be geared towards NMB’s loans to MSMEs with a specific focus on the agriculture value chain being a key driver of the Tanzanian economy.

Why do we fund this investment?

NMB plays an important role in contributing to financial inclusion by serving the MSME segment that has difficulties in getting loans from financial institutions. The Risk Sharing Facility (RSF) will help the bank expand its business with MSMEs with a particular focus on MSMEs led by women, youth and operating in the agriculture sector. These clients often have a higher risk profile and have limited access to collateral and credit histories, which limits their ability to access financing. By sharing in the credit risk for the underlying loan portfolio, FMO will be helping NMB to offset the increased risk and enable them to further grow their loan portfolio and increase the financing for MSMEs.

What is the Environmental and Social categorization rationale?

The client is categorised as E&S Category A in accordance with FMO’s Sustainability Policy and based on the overall loan portfolio for NMB and their increasing exposure in the corporate sector. To tackle the increased E&S risks, an E&S Action Plan has been developed and agreed upon as part of the recent senior loan facility. Although, the underlying portfolio covered by this NASIRA facility will have lower E&S risk given the focus on MSMEs and low loan sizes to end-clients, the overall categorization and the same requirements will apply to the client.

More investments

Date Total FMO financing
2/22/2023 TZS 23294.70 MLN
Website customer/investment
Tanzania, United Republic of
Financial Institutions
Publication date
Effective date
Total FMO financing
TZS 643.50 MLN
Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk Environmental & Social Category
(A, B+, B or C)