CRDB Bank signs USD 320 million deal with DFC, Citi to support over 4,500 small businesses in Tanzania and Burundi

NEW YORK CITY, USA 26th September 2024 – CRDB Bank, the leading commercial bank in Tanzania, has signed a groundbreaking USD 320 million agreement with the U.S. International Development Finance Corporation (DFC) and Citibankto strengthen its ability to provide loans to small businesses, particularly those owned and led by women and youth.

The ceremonial signing took place on the sidelines of the U.N. General Assembly at Citibank's headquarters in New York City, attended by Tanzanian Prime Minister Kassim Majaliwa, Minister of Investment and Planning Prof. Kitila Mkumbo, and a delegation of senior officials from Tanzania.

CRDB Bank Group CEO Abdulmajid Nsekela said at the ceremony, "This $320 million loan will expand access to finance for women- and youth-led micro, small, and medium-sized enterprises (MSMEs) in Tanzania and Burundi, 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."

The funds from DFC and Citibank 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. Nsekela highlighted that, alongside innovative financing products, the bank, through its subsidiary CRDB Bank Foundation, has placed a strong emphasis on capacity building for young and female entrepreneurs through financial literacy and entrepreneurship training. "This partnership with DFC and Citi will further catalyze these efforts," Nsekela added.

The project will support more than 4,500 small businesses in Tanzania, one of Africa's most dynamic markets. At least USD 60 million will support Tanzanian women-owned or women-led small businesses eligible for DFC’s 2X Women’s Initiative, helping to address the unique economic challenges women face globally. At least USD 25 million will also go to supporting small businesses in Burundi.

Nsekela expressed gratitude to all stakeholders involved, highlighting the crucial role played by the governments of Tanzania and Burundi in fostering an enabling environment for such partnerships. “The supportive policies and frameworks established by our governments have been pivotal in attracting international investment, which is vital in advancing our development agenda,” Nsekela noted.

DFC Deputy CEO Nisha Biswal emphasized the corporation’s commitment, stating, “DFC is committed 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.”

The loan represents DFC’s commitment to expanding its relationship in Tanzania––to strengthen its existing partnerships and explore new opportunities for cooperation, advancing economic security across the region and throughout Africa. 

This loan builds on DFC’s extensive past work with CRDB Bank alongside USAID/Tanzania to support Tanzanian small businesses and Tanzanians, including a USD 20 million guaranty to support lending to small businesses with a focus on providing education services and working in informal sectors and a USD 4 million guaranty to expand access to finance for women and youth borrowers in the health sector.

Africa is a priority for DFC’s investments and is DFC’s largest regional portfolio. The agency currently has more than USD 11 billion in exposure in countries across the continent.

On his part, Citi Tanzania’s Chief Country Officer and Banking Head Geofrey Mchangilasaid that “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. This transaction is part of our USD 1 trillion 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.”

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 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, enabling 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). By connecting local businesses to a market of over 1.3 billion 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 Sh4 trillion 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.