EIB Participation

EUROPEAN INVESTMENT BANK FINANCIAL SUPPORT TO SMEs& MidCaps

 NMB Bank Plc (NMB) has collaborated with European Investment Bank (EIB) to provide financing to Small and Medium-sized Enterprises (SMEs), MidCaps, and sub-projects that support gender equality, women economic empowerment and the blue economy sectors.  This collaboration will enable NMB to continue supporting government efforts focused at unlocking sustainable economic prosperity across the country through access to credit, financial inclusion and employment opportunities.

 Eligibility Criteria

1.     Eligible Borrower

a)     SMEs and MidCaps (EIB Definition)

Eligible SMEs are defined as enterprises with less than 250 permanent full-time employees and Midcaps are defined as enterprises with a minimum of 250 and less than 3,000 permanent full-time employees.  

b)    Gender and Women Economic Empowerment

Eligible borrowers under this category should be an SME or MidCap founded or owned by women (at least 50% of the business), 30% of its leadership team is comprised of women (Executive Management and at least one woman is in the Board/Investment Committee), at least 40% of its workforce are women, and generates product(s) or services that specifically or disproportionally benefit women and address critical barriers to gender equality and women’s economic empowerment.

c)     Blue Economy

Eligible borrowers to be financed under this category are those that have sub-projects that impact positively the blue economy sectors. These include:

  • Marine-based activities (capture fisheries, aquaculture, marine renewable energy, desalination, maritime transport, maritime and coastal tourism, coastal resilience),
  • Marine-related activities (seafood processing, biotechnology, shipbuilding and repair, port activities, technology and equipment, digital services, research and innovation in ocean industries, ocean monitoring and protection platforms and services),
  • Aimed at reducing the impact of land-based activities on the marine environment (e.g. solid waste and waste-water management, pollution reduction), or
  • Aimed at protecting the coast from the effects of floods (e.g. coastal protection projects, stormwater management) 

2.     Location for Borrowers

Borrowers shall be registered anywhere in the territory of Tanzania.

3.     Eligible Use of Funds and Excluded Activities

a)     Funding is aimed at SMEs and MidCaps that are economically, environmentally, technically and financially sound.

b)     The funding can be used for:

  • Tangible Assets: - Purchase, renovation or extension of tangible assets, with some restrictions concerning land purchases.  The financing of land purchase is excluded unless it is technically essential for the investment.
  • Intangible Assets: - particularly the expenditure involved in R&D, purchase of process licenses, software, patents, trademarks, brands and similar rights and assets. However, the following intangible assets will not be financed by EIB funds, including goodwill, licenses or rights for mineral resource exploitation and production rights in the agricultural sector.
  • Working Capital: - Medium and Long-term working capital requirements needed for the operational activity of the SME or MidCap.

c)     Excluded Activities:

EIB funds shall not finance  sectors that deal with production of weapons and ammunition, arms, military or police equipment or infrastructures; equipment or infrastructure limiting people’s individual rights and freedom; activities which give rise to environmental impact that are not largely mitigated and/or compensated; activities considered ethically or morally controversial or prohibited by national legislation; activities targeting the production or sale of goods which are the subject of an act infringing a trade mark or a geographical indication; activities including resettlement of people; gambling; and tobacco related activities. 

What are the benefits for the EIB-supported loans? 

Through this collaboration, SMEs and MidCaps will be able to access financing with a financial advantage that translates into a longer tenor than that offered without EIB's participation.