Joint funding to strengthen support for SMEs in Tanzania and Burundi
A loan agreement to support small businesses
On September 26, 2024, CRDB Bank, Tanzania’s largest commercial bank, signed a $320 million loan agreement with Citibank and the U.S. Development Finance Agency (DFC). The financing will enable CRDB Bank to strengthen its lending portfolio to more than 4,500 local SMEs in Tanzania and Burundi. By 2023, 19% of the bank’s lending was already to SMEs, totaling Tsh8.444 trillion ($3.10 billion).
Increased support for women-led businesses
The agreement also provides $60 million in funding specifically for women-owned or women-led small businesses in Tanzania. Although women represent 80% of the workforce, particularly in agriculture, they remain largely underfunded. About 75% of women-led businesses do not have access to finance, often due to lack of collateral or lack of knowledge about financial products.
Extension of funding to Burundi
The funding will also benefit CRDB Bank Burundi, which plans to provide $25 million to support SMEs in the country. This financial support aims to stimulate the growth of micro, small and medium-sized enterprises (MSMEs), particularly those led by women and youth, thereby contributing to the expansion of their activities.
A banking group in full expansion
CRDB Bank, present in Tanzania, Burundi and since 2023 in the Democratic Republic of Congo, posted solid financial performance in 2023, with a 30.7% growth in its profit after tax. The bank also recorded a 3.8% increase in its deposits and a 16.4% increase in its assets, thus strengthening its leading position in the Tanzanian banking market.
Conclusion
The joint Citibank and DFC loan will enable CRDB Bank to play a critical role in improving access to finance for small businesses in Tanzania and Burundi. With a focus on women-led SMEs, this financing will help reduce economic disparities and support financial inclusion, while promoting the growth and expansion of local businesses.
