MICROCAPITAL BRIEF: IFC lends $105 million to CRDB Bank to increase financing for MSMEs – especially women-owned businesses – in Tanzania and Burundi
The World Bank Group’s International Finance Corporation (IFC) recently announced a loan equivalent to $100 million – half of it in local currency – to the Tanzania-based Cooperative Rural and Development Bank (CRDB Bank) and a loan of $5 million to CRDB Bank Burundi. The objective of the loans granted to these two members of the CRDB Bank group, whose head office is in Tanzania, is to increase “longer-term finance” for micro, small and medium-sized enterprises (MSMEs), with potentially a quarter of funding in Tanzania going to women-owned businesses.
Abdulmajid Nsekela, CEO of CRDB Bank Group, said: “This line of credit comes at an opportune time and will strengthen our support for SMEs. [small and medium-sized enterprises] while promoting gender diversification throughout the value chain…. IFC financing would support the development of productive sectors of the economy, including agribusiness, health, education, affordable housing and infrastructure. Other sectors include climate change mitigation and adaptation…”.
Established in 1996, CRDB Bank Group is a publicly traded entity with commercial banking subsidiaries in Burundi and Tanzania serving 3 million individuals as well as businesses of all sizes through 268 branches, 550 ATMs and online. The third member of the group is CRBD Insurance. As of March 2022, the group reports total assets of TZS 9.4 trillion ($4.0 billion); Overall result over 12 months of 115 billion TZS (49 million USD); customer deposits of TZS 6.6 trillion ($2.8 billion); and loans, advances and overdrafts of TZS 5.54 trillion ($2.37 billion).
Founded in 1956, IFC provides loans, equity investments, advisory services and technical assistance to private enterprises with the goal of reducing poverty and promoting open and competitive markets in low- and middle-income countries. In the 12 months ending in June 2021, the organization disbursed investments totaling $31.5 billion, of which around a third was mobilized from partner institutions.
By Sheen Gupta, Research Associate
Sources and additional resources
IFC press release
CRDB Bank Home Page
CRDB Bank Financial Reports
CBRD Bank Burundi homepage
IFC home page
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