CRDB Bank, Afreximbank sign strategic deal for $115 million facility
CRDB Bank Group CEO and Managing Director, Abdulmajid Nsekela (right) and Afrexim Bank’s Executive Vice President, Kanayo Awami sign a $115 million MOU in Cairo, Egypt yesterday. Witnessing are senior officials from the two companies. PHOTO | THE CITIZEN CORRESPONDENT
What you need to know:
- One month ago, CRDB Bank entered into a $150 million facility agreement with Intesa Sanpaolo and Investec Bank to bolster its funding capabilities in the SME sector. It has also collected Sh171.82 billion from the sale of its Green Bond.
Dar es Salaam. CRDB Bank and the African Export-Import Bank (Afreximbank) have signed a Memorandum of Understanding (MoU) for a $115 million facility agreement that will bolster investments in key sectors such as agriculture, oil and gas, and trade.
The MoU signed during the ongoing Intra-African Trade Fair (IATF) 2023 in Cairo, Egypt, comprises $110 million for CRDB Bank's parent company and an additional $5 million allocated to its subsidiary, CRDB Bank Burundi, the Tanzanian lender said in Dar es Salaam yesterday.
“This MoU marks a pivotal shift from a transactional association to a strategic partnership, emphasizing a long-term commitment to mutual growth and development,” CRDB Bank Plc said in its statement yesterday.
The funds from the facility will also support initiatives in digital infrastructure, capacity building programs, technical assistance, advisory services, and cross-border business expansion.
One month ago, CRDB Bank entered into a $150 million facility agreement with Intesa Sanpaolo and Investec Bank to bolster its funding capabilities in the SME sector. It has also collected Sh171.82 billion from the sale of its Green Bond.
The new agreement with Afreximbank was formalized during the IATF 2023 Diaspora Day, where high-level discussions were held to explore the collaborative potential between Africa and its diaspora for a shared and prosperous future.
CRDB Bank Group CEO and Managing Director, Abdulmajid Nsekela, actively participated in the discussions.
In his remarks during the event, Mr Nsekela praised the efforts by the government of Tanzania in creating a conducive environment to diaspora investments and access to various services including the banking. He specifically lauded the recent launch of the Diaspora Digital Hub (DDH) system, aimed at understanding and meeting the diverse needs of the diaspora more effectively.
"African countries should focus on enhancing their policies to facilitate diaspora participation in available investment opportunities. In the case of Tanzania, our Central Bank has taken a proactive step by amending policies to enable the diaspora to open bank accounts and invest in their home country," he emphasized.
Nsekela emphasized the wealth of investment opportunities available to the diaspora in agriculture, infrastructure, health, and real estate sectors. He underscored the importance of stakeholder collaboration, citing the successful partnership between the Tanzanian government and various institutions, including CRDB Bank, which supported Sh100 Million in establishing the Diaspora Digital Hub. As a key player in the establishment of the DDH, CRDB Bank is dedicated to providing convenient services through its Diaspora Banking unit.
The Bank provides loans and investment advisory support to encourage the diaspora to invest back home in key sectors. For instance, through a recent collaboration with the Revolutionary Government of Zanzibar, acquiring properties in prominent real estate projects such as Fumba Town has become considerably more accessible for them.
The Bank's Tanzanite Account presents an enticing package for the diaspora, encouraging them to bank at home. This account is seamlessly linked to the 'KAVA Assurance' life insurance, providing exclusive benefits that encompass a condolence payout of Sh5 million and coverage for transportation costs up to Sh15 million in the unfortunate event of a customer's demise.
The account further integrates with digital banking systems such as 'SimBanking,' 'Internet banking,' and TemboCard, streamlining transaction processes for diaspora customers. Collaborations with leading remittance partners like Western Union, World Remit, Ria, and Upesi enables CRDB Bank to facilitate foreign remittances, empowering the diaspora to achieve various financial goals.
The Third IATF 2023 has been organized by Afreximbank in collaboration with the African Union (AU) and Africa Free Trade Area (AfCTA). The African Union considers Diaspora as the sixth regional economic community for Africa.
African Diaspora constitutes a consequential economic, cultural, and political block that needs to be harnessed to promote the interest and development of Africans and people of African descent wherever they may be.
