NEW YORK CITY – The U.S. International Development Finance Corporation and Citi today announced $320 million in financing for CRDB Bank, the largest commercial bank in Tanzania, to strengthen its ability to provide loans to small businesses, particularly those owned and led by women.
DFC Deputy CEO Nisha Biswal joined Citi Global Head of Export Agency Finance Richard Hodder, and Group CEO and Managing Director of CRDB Bank Abdulmajid Nsekela on the sidelines of the U.N. General Assembly for the ceremonial signing. Prime Minister of Tanzania Kassim Majaliwa and a delegation of senior Tanzanian officials attended the ceremony to observe the signing.
The project will support more than 4,500 small businesses in Tanzania, one of Africa's most dynamic markets. At least $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 $25 million will also go to supporting small businesses in Burundi.
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.
“DFC is committed to Tanzania’s economic growth, targeting investments that will have the greatest impact on people and communities,” DFC Deputy CEO Nisha Biswal remarked. “This loan will support on-lending to thousands of small businesses that are driving economic progress across the country.”
“This $320 million loan will greatly expand access to finance for women- and youth-led micro, small, and medium-sized enterprises (MSMEs) across Tanzania and Burundi, empowering these entrepreneurs to innovate and build 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,” said CRDB Bank Group CEO Abdulmajid Nsekela.
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.
“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 $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,” added Citi Tanzania’s Chief Country Officer and Banking Head Geofrey Mchangila.
This loan builds on DFC’s extensive past work with CRDB Bank alongside USAID/Tanzania to support Tanzanian small businesses and Tanzanians, including a $20 million guaranty to support lending to small businesses with a focus on providing education services and working in informal sectors, and a $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 $11 billion in exposure in countries across the continent.
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About DFC:
The U.S. International Development Finance Corporation (DFC) partners with the private sector to finance solutions to the most critical challenges facing the developing world today. We invest across sectors including energy, healthcare, infrastructure, agriculture, and small business and financial services. DFC investments adhere to high standards and respect the environment, human rights, and worker rights.
About Citi:
Citi is a preeminent banking partner for institutions with cross-border needs, a global leader in wealth management and a valued personal bank in its home market of the United States. Citi does business in more than 180 countries and jurisdictions, providing corporations, governments, investors, institutions and individuals with a broad range of financial products and services.
About CRDB Bank Plc:
CRDB Bank Plc is one of the East Africa’s leading banks, serving retail, micro, small, and middle businesses and large corporates in the markets of Tanzania, Burundi, and the Democratic Republic of the Congo. CRDB Bank is the first bank in Tanzania to be rated among the top 10 stable and safer-to-invest African banks by the world’s most respected rating agency, Moody’s Investors Services. Moody’s rated CRDB Bank with a “B1 stable outlook,” which is the strong rating by banks or financial institutions in Sub-Saharan Africa. In 2019, CRDB Bank was accredited by the U.N. Green Climate Fund, and in 2023, CRDB Bank became the first bank in Sub-Saharan countries to issue the largest green bond, aimed at raising funds to support projects that are environmentally friendly. CRDB Bank provides unmatched convenience in Tanzania and Burundi, serving more than 4 million customers with a large footprint of more than 260 branches, 25,000 CRDB Wakala, over 600 ATMs, and 1,800 merchants. The Bank also offers world-class mobile and internet banking services whereby more than 90 percent of the customer’s transactions are being made through those platforms.