CRDB Bank and IFC to increase access to capital for entrepreneurs in Tanzania and Burundi.

Dar es Salaam, July 12, 2022 – CRDB Bank and the International Finance Corporation (IFC) have today signed a financing agreement aimed at increasing access to capital for small and medium-sized enterprises (SMEs) in Tanzania and Burundi, while supporting economic recovery in both countries following the impacts of the COVID-19 pandemic. The signing ceremony took place at Johari Rotana Hotel in central Dar es Salaam and was attended by senior executives from both institutions.

Through this partnership, IFC is providing a USD 100 million loan to CRDB Bank Tanzania, half of which will be in Tanzanian Shillings, and an additional USD 5 million loan to CRDB Bank Burundi to support lending to small businesses in both countries, with a particular focus on women-owned enterprises.

As part of the agreement, 25% of the loan directed to Tanzania will be allocated specifically to women-owned businesses. These funds will increase the availability of long-term financing, which has been scarce since the onset of the COVID-19 pandemic.

The loans are part of IFC's broader initiative to empower underserved segments of the economy by supporting financial institutions to provide lending to small businesses and entrepreneurs most affected by the pandemic. The financing is also supported by the International Development Association’s (IDA) Private Sector Window.

Entrepreneurs are a critical part of the economies of both Tanzania and Burundi. In Tanzania, there are approximately 3.2 million small and medium-sized businesses, contributing 27% to the national GDP and providing employment to over 5 million people. However, nearly 81% of these businesses face limited access to financing. Businesses in Burundi also face significant challenges in accessing capital.

“These funds have come at the right time and will strengthen our ability to empower SMEs while promoting gender equality within the value chain. At CRDB Bank, we believe that gender equality and women's empowerment are the foundations of sustainable development. Women have been severely impacted by the COVID-19 pandemic, which has triggered economic challenges that directly affect families and communities,” said Abdulmajid Nsekela, CEO of CRDB Bank, during the signing ceremony.

Nsekela added that IFC’s financing will support growth across various sectors of the economy, including trade, agriculture, health, education, housing, and infrastructure. Other focus areas include climate-focused projects, entrepreneurship, and women-owned businesses, as emphasized in the cooperation agreement between CRDB Bank and IFC.

“The partnership between IFC and CRDB Bank will support the growth of entrepreneurship in both countries, where SMEs play a vital role in job creation and economic activities. This partnership also includes targeted efforts to support women-owned businesses and promote gender inclusion, which is a core part of IFC’s strategy in Tanzania and across Africa,” stated Sérgio Pimenta, IFC’s Vice President for Africa.

IFC has a long-standing relationship with CRDB Bank. Today’s financing agreement marks the fifth such collaboration between the two institutions and is part of IFC’s growing efforts in Tanzania to support SME growth and increase financing for women-owned businesses.