Proparco, the private sector financing arm of the French Development Agency (AFD), has renewed its strategic partnership with CRDB Bank, Tanzania’s largest financial institution, by providing two new guarantees worth €24 million each, totaling €48 million.
This initiative aims to support the growth of Micro, Small, and Medium Enterprises (MSMEs) in Tanzania, fostering economic development and job creation.
The signing ceremony took place on 24th March 24 2025 in Dar es Salaam and was attended by 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 CEO of CRDB Bank Plc, and Sebastian Schaber, the European Union Representative in Tanzania.
Proparco explains that MSMEs are a critical component of Tanzania’s economy, contributing 27% of the country’s GDP and employing over 5 million people. However, access to financing remains a significant challenge for these businesses due to a lack of guarantees and stringent capital requirements.
The new guarantees provided by Proparco, namely the EURIZ and ARIZ guarantees, are designed to address these barriers and unlock greater access to financing for Tanzanian entrepreneurs.
The EURIZ guarantee, backed by the European Union and the Organization of African, Caribbean, and Pacific States (OACPS), will focus on high-impact MSMEs in sectors such as education, agriculture, and healthcare, with a particular emphasis on businesses led by women and young entrepreneurs.
The ARIZ guarantee, a risk-sharing tool from the AFD Group, will target MSMEs in trade and services. Together, these guarantees aim to drive financial inclusion and empower underfunded businesses, which are essential to Tanzania’s economic resilience.
Anne-Sophie Avé, French Ambassador to Tanzania, highlighted the importance of the partnership, stating: “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 drive long-term prosperity.”
Jean Guyonnet-Dupérat, Proparco’s Regional Director for East Africa, emphasized the impact of the collaboration, saying: “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, added: “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.”
