NMB secures US$30 million China loan for Tanzanian SMEs

NMB Bank has secured a US$30 million loan from China Development Bank to lend to Tanzanian SMEs. The deal was signed at NMB’s headquarters in Dar es Salaam and announced on 5 November. That is about TZS 79.2 billion at the latest Bank of Tanzania rate.

To be clear, this money goes to NMB, not straight to business owners. What it gives the bank is more room to lend. So the question for a small firm is simple. Can you be first in line when that lending opens up?

Who can benefit from this loan?

NMB says the money will expand financing for small and medium-sized businesses. It aims to support expansion, investment and trade. Firms that import from or export to China are named as a target group.

Managing Director Ruth Zaipuna made the case at the signing. She said “access to adequate financing remains a challenge for many entrepreneurs”. She also called small businesses central to Tanzania’s economy.

NMB already offers renminbi payments, RMB business accounts and trade finance through China’s payment network. It also runs Canton Fair business tours. A trader who buys from China may therefore get credit and payments from one bank.

Why do Tanzanian SMEs need more credit?

Because few of them have it. Only 16% of firms in Tanzania have a bank loan or credit line, Norfund said in May, citing the World Bank.

The wider credit market is strong, though. The Bank of Tanzania’s October report says private sector credit grew 32.5% on average in the third quarter. Non-performing loans were just 2.5% in August. Lending rates stayed at around 15%.

The central bank held its key rate at 6.25% in October. Banks clearly want to lend, but most smaller firms are still outside the system.

How much foreign money has NMB raised?

This is NMB’s third foreign deal in about six months. The total now stands at US$210 million, or about TZS 554.5 billion.

• May 2026: US$100 million from the International Finance Corporation, for small businesses, agribusiness, and women-led and youth-led firms.
• May 2026: US$80 million from British International Investment and Norfund, for SMEs and agriculture.
• November 2026: US$30 million from China Development Bank, for SMEs and China trade.

Do not confuse the two US$30 million figures. Norfund’s share of the May facility was also US$30 million, but it is a separate loan. That facility is offered in dollars and shillings, which helps reduce currency risk for borrowers.

What is still unknown?

Quite a lot, and it matters.

• The interest rate, the length of the loan and the repayment terms have not been published.
• NMB has not said who qualifies, or how big each loan can be.
• It is not clear if borrowers will repay in shillings, dollars or yuan.

The last point is important. The shilling averaged TZS 2,655.15 to the dollar in the third quarter, the Bank of Tanzania says. That was 6.7% weaker than a year earlier. A loan in foreign currency can cost more if the shilling falls, unless your sales are in that currency too.

What should Tanzanian SMEs do now?

1. Get your papers ready. Keep your TIN, business licence, bank statements and accounts up to date. Lenders move faster when records are clean.
2. Talk to your bank early. Ask NMB what the new money means for your sector, and what size of loan you could expect.
3. Ask about the currency. Find out which currency you would repay in. Match it to the currency you earn.
4. Test the numbers. Work out your repayments at 15%, and at a higher rate. If the deal only works at the lowest rate, think again.
5. Compare your options. Look at other banks and lenders on EABD before you sign.

Importers can also use this moment to review their suppliers. EABD Sourcing lets you describe what you need and compare quotes from across East Africa, so you can check a China price against a regional one.

Which sectors could gain most?

Firms that buy stock in bulk tend to need credit most. Construction is the largest sector among the 30,654 businesses in Tanzania on EABD, with 7,673 firms. Hospitality follows with 4,635, and retail with 3,311.

What happens next?

NMB may give more detail in its next results statement, but no date has been announced. Until then, the best step for Tanzanian SMEs is to prepare. When credit becomes available, the firms with clean records usually get there first.