Seeds of change: NMB Tanzania's Sustainability Bond initiative
Seeds of change: NMB Tanzania's Sustainability Bond initiative
NMB Tanzania’s Jamii Bond is rewriting the rules of sustainable finance in East Africa, linking global investors to local agribusinesses and climate action through a pioneering partnership with eco business Fund

Project summary
NMB Tanzania, a progressive bank in East Africa, has long been committed to fostering sustainable development within the country’s communities. In September 2023, NMB introduced the Jamii Bond, a groundbreaking sustainability-linked bond with green features, first of its kind in sub-Saharan Africa. This bond also became the first sustainability-linked bond from East Africa to be listed on the London Stock Exchange, attracting international investors’ interest in the region’s sustainability efforts.
The eco business Fund, dedicated to financing projects with environmental and social impact, recognized the transformative potential of this initiative. In December 2023, the fund made its inaugural investment of USD 18 million in NMB's multi-currency Medium-Term Note (MTN) issuance program, marking a significant milestone in their journey towards sustainable finance

Purpose of the partnership
The partnership between eco business Fund and NMB Tanzania was driven by a shared vision: to support underfinanced agribusinesses while preserving Tanzania’s rich biodiversity. The investment aimed to bolster NMB's efforts in expanding its sustainable agricultural portfolio, providing crucial support to agribusinesses committed to adopting sustainable practices. In a region facing macroeconomic challenges, such as increased interest rates, rising energy costs, and the global impacts of climate change, the eco business Fund's investment provided much-needed liquidity to Tanzania's underserved agricultural value chains, fostering resilience and enhancing food security.

How we worked together
The collaboration began with a focus on innovation and impact. As NMB deployed the funds, the potential for growth and expansion became clear. The bank is now expanding to three additional sustainability standards, ASC Aquaculture, Roundtable on Sustainable Biomaterials, and Bonsucro EU, aligned with the fund’s mission. This further solidifies NMB’s position as a pioneer in sustainable agri-finance in the region.
The transaction is expected to contribute to climate action through carbon sequestration from investments in tree crops and agroforestry, while also supporting rural employment and livelihoods. Investments in cashew, spices, fruits, vegetables, and cereals agribusinesses empower smallholder farmers, linking them to broader value chains and improving access to finance and new markets. Efforts to promote reduced tillage and efficient irrigation among commercial farmers underscore the commitment to climate action and resource efficiency.
This partnership directly supports the UN Sustainable Development Goals, particularly those related to climate action, sustainable agriculture, and economic growth. By empowering smallholder farmers and promoting sustainable practices, the initiative contributes to food security, rural employment, and environmental resilience in East Africa.
