CRDB Bank, a leading commercial bank in Tanzania, has signed a groundbreaking $320m agreement with the USAID-based Development Finance Corporation (DFC) and Citibank Corp. to strengthen its ability to provide loans to small businesses in Tanzania and Burundi.

Abdulmajid Nsekela, CRDB Bank Group CEO said at the signing ceremony that the loan will expand access to finance for women- and youth-led micro, small and medium-sized enterprises (MSMEs) in the two countries, empowering entrepreneurs to innovate and drive sustainable growth. 

“We are confident that this funding will not only fuel business expansion but also serve as a catalyst for gender equality, providing women entrepreneurs with the support they need to thrive and contribute to inclusive economic development," he stated, in the company of Prime Minister Kassim Majaliwa, and Prof. Kitila Mkumbo, the Planning and Investment minister.

The funds will significantly bolster CRDB Bank Group’s efforts in fostering inclusive economic growth in the region, as part of its five-year strategic plan aimed at enhancing support for entrepreneurs, the CEO affirmed.

Alongside innovative financing products, the bank, through its subsidiary CRDB Bank Foundation, has placed strong emphasis on capacity building for young and female entrepreneurs through financial literacy and entrepreneurship training, he elaborated.

"This partnership with DFC and Citi will further catalyze these efforts," he asserted, pointing out that the project targets more than 4,500 small businesses in Tanzania, where at least $60m will support women-owned or women-led small businesses eligible for DFC’s 2X Women’s Initiative.

“This will help to address unique economic challenges women face globally, where upwards of $25m will also go to supporting small businesses in Burundi, he specified, expressing gratitude to all stakeholders involved in enabling the deal to be reached.

He cited the crucial role played by the two governments in fostering an enabling environment for such partnerships, as pivotal in attracting international investment, which is vital in advancing the bank’s development agenda.

Nisha Biswal, the DFC deputy CEO, emphasized the corporation’s commitment, affirming its commitment to Tanzania’s economic growth, focusing on investments that create the most significant impact on communities. 

‘This loan will support on-lending to thousands of small businesses that are essential for economic progress across the country,” he stated, reiterating DFC’s commitment to expanding its relationship in Tanzania.

It expects to strengthen existing partnerships and explore new opportunities for cooperation, advancing economic security across the region and throughout Africa, he said.  

“This loan builds on DFC’s extensive past work with CRDB Bank alongside USAID/Tanzania to support Tanzanian small businesses and Tanzanians,’ he said, citing a $20m guaranty to support lending to small businesses with a focus on providing education services and working in informal sectors.

There is also a $4mi guaranty to expand access to finance for women and youth borrowers in the health sector, he said, stressing that Africa is a priority for DFC’s investments.

He said that the continent represents DFC’s largest regional portfolio, currently having more than $11bn in exposure in countries across the continent, he stated, seconded by 

Citibank (T) chief country officer and banking head Geofrey Mchangila.

 “Citi is actively working to execute our social finance agenda through innovative partnerships like this. Our goal is to help create real economic value in Tanzania by driving financial inclusion through the empowerment of small businesses by meeting financial needs that are currently unmet,” he stated.

“This transaction is part of our $1trn commitment to sustainable finance by 2030, strategically focused on expanding access to employment, finance, basic infrastructure and services to low-income communities in emerging markets,” he declared.

With the future dependent on the empowerment of women and youth, CRDB Bank is leading the charge in Tanzania, creating opportunities that fuel the country’s economic growth. 

As one of the country's leading financial institution, the bank is not only driving financial inclusion but also playing a critical role in empowering micro, small and medium enterprises (MSMEs), especially those owned by women and youth, he further noted, projecting that the facility will “enable them to thrive and become key drivers of Tanzania’s economic recovery.”

With a footprint in Burundi and the Democratic Republic of Congo (DRC), the bank is also positioning Tanzanian MSMEs to tap into new regional opportunities through the African Continental Free Trade Area (AfCFTA), he pointed out. 

“By connecting local businesses to a market of over 1.3bn consumers across Africa, CRDB Bank is unlocking vast economic potential for Tanzanian entrepreneurs, to become regional powerhouses.

“In the past five years, CRDB Bank has provided over 4trn/- in financing to the MSME segment across various sectors, with a special focus on women-owned enterprises through its dedicated CRDB Malkia proposition. 

“This initiative has not only expanded access to capital for women entrepreneurs but also enabled them to grow their businesses and contribute to Tanzania’s economic development,” the bank executive assessed.