THE CRDB Bank Foundation and the United Nations Development Programme (UNDP) have formalized a Memorandum of Understanding (MoU) to collaborate in a number of areas.

Tully Mwambapa, the foundation’s managing director, said at the signing ceremony at the bank’s head offices yesterday that the MoU is a landmark five-year accord to lay the groundwork for cooperation in financing youth and women empowerment.

There are components like sustainable finance adoption, start-up growth and innovation ecosystem support, along with joint resource mobilisation for impactful programmes and expertise exchanges, she said.

The foundation’s link with UNDP sets up a united front to address critical challenges, with a view to contribute to realising the sustainable development goals, she asserted.

The partnership opens the door to transformative initiatives aimed at fostering gender equality, youth empowerment, inclusive economic growth and resilience to climate change, she stated.

With over three million SMEs contributing upwards of 27 percent to Tanzania’s GDP, with half that number being women-owned entities, the MoU will enable the foundation to comprehensively collaborate with these entities, she elaborated.

The key initiative under the pact is empowering women-led micro, small and medium-sized enterprises (MSMEs) to leverage opportunities presented by the African Continental Free Trade Area (AfCFTA), she said.

Emphasizing the pivotal role MSMEs play in the country’s economy, she qualified this cohort of enterprises as the country's economic backbone, employing over five million people.

These include underprivileged youth and women, pushing the foundation to develop a programme to empower youth and women through financial training and seed capital. “Partnering with UNDP is a crucial step towards transforming entrepreneurs' lives in the coming year," the CEIO intoned.

Under the seed capital initiative, over 100,000 individuals have undergone training, with 5bn/- disbursed as seed capital since its inception last year. The UNDP link will add punch to the foundation's commitment to ending poverty (SDG 1), uplift gender equality (SDG 5), and ensuring full and productive employment for all (SDG 8).

Shigeki Komatsubara, the UNDP resident representative, stressed the core values that UNDP represents, such as advancing sustainable development through wealth creation, building resilient communities and promoting good governance. “These principles form the foundation of our actions, and today's MoU reflects our collective commitment to translating these ideals into tangible outcomes,” he declared.

In inspiring remarks, he underscored the significance of collaboration in pursuing common objectives, cautioning on underestimating the power such collaboration holds to create a legacy of positive change. 

Partnerships that extend beyond organizational boundaries and embody collective responsibility play a vital role in building a future that is equitable, sustainable and prosperous for all, he told the gathering

The partnership represents a significant stride towards unlocking the full potential of local MSMEs, investing in women and youth to accelerate SDGs and leveraging AfCFTA opportunities, he added.