[ad_1]
The World Bank Group’s International Finance Corporation (IFC) recently announced a loan equivalent to USD 100 million – half in local currency – to Tanzania-based Cooperative Rural and Development Bank (CRDB Bank) and a loan of USD 5 million to CRDB Bank Burundi. The goal of the loans to these two members of the CRDB Bank Group, whose head office is in Tanzania, is to increase “longer tenor financing” for micro-, small and medium-sized enterprises (MSMEs), with potentially one quarter of the funding in Tanzania going to firms owned by women.
Abdulmajid Nsekela, CRDB Bank Group’s CEO, stated, “This line of credit comes at an opportune time and will boost our support to SMEs [small and medium-sized enterprises] while promoting gender diversification across the value chain…. IFC’s 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 that serve 3 million individuals as well as companies of all sizes via 268 branches, 550 automated teller machines 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 (USD 4.0 billion); 12-month comprehensive income of TZS 115 billion (USD 49 million); customer deposits of TZS 6.6 trillion (USD 2.8 billion); and loans, advances and overdrafts of TZS 5.54 trillion (USD 2.37 billion).
Founded in 1956, IFC offers loans, equity investments, advisory services and technical assistance to private companies with the intent of alleviating poverty and promoting open and competitive markets in low- and middle-income countries. During the 12 months ending June 2021, the organisation disbursed investments totaling USD 31.5 billion, of which about one third was mobilised from partner institutions.
By Sheen Gupta, Research Associate
Sources and Additional Resources
IFC press release
https://pressroom.ifc.org/all/pages/PressDetail.aspx?ID=27086
CRDB Bank homepage
https://crdbbank.co.tz
CRDB Bank financial reports
https://crdbbank.co.tz/financial-reports/#1651213503762-7aaff08f-3224
CBRD Bank Burundi homepage
https://crdbbank.co.bi
IFC homepage
https://www.ifc.org
Previous MicroCapital article on IFC
https://www.microcapital.org/microcapital-brief-ifc-vista-bank-launch-24m-partnership-to-increase-access-to-trade-finance-in-burkina-faso-guinea/
Previous MicroCapital article on CRDB Bank
https://www.microcapital.org/microcapital-brief-government-policy-moves-bancabc-crdb-nmb-to-cut-interest-rates-on-loans-in-tanzania/
Did you know that MicroCapital publishes the MicroCapital Monitor newspaper each month? Find out more at https://www.microcapital.org/products-page/.
Similar Posts:
- MICROCAPITAL BRIEF: CDC Group, Habib Bank Limited (HBL) Agree to $50m Risk-sharing Facility to Boost Trade, Supply Chains in South Asia, Africa
- MICROCAPITAL BRIEF: Khan Bank Borrows $6m from MicroVest for SMEs in Mongolia
- MICROCAPITAL BRIEF: Sherpa Company Pays $65m for 25% Equity Stake in Trusting Social to Harness Big Data for Consumer Finance in Vietnam
- MICROCAPITAL BRIEF: Equity Bank Secures $144m from EIB, EU to Support Agriculture, SMEs in Kenya in Responding to COVID-19 Pandemic
- MICROCAPITAL BRIEF: Khan Bank of Mongolia Borrowing $120m from FMO, Atlantic Forfaitierungs, DEG, IIB, PROPARCO – Part for MSME Loans, Green Capacity
[ad_2]
Source link
