CRDB Bank, USAID, and DFC Unlock TZS 100BN in Tanzania for Education, Health, Micro, Small, and Medium Enterprises (MSMEs) and the Informal Sectors

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In support of USAID’s development objectives in health and education, USAID facilitated guarantee agreements between DFC and CRDB totaling $42.8 million (nearly TZS 100 billion) to increase financing opportunities for micro, small, and medium-sized enterprises (MSMEs) that would not otherwise be able to obtain financing.
In support of USAID’s development objectives in health and education, the Agency facilitated a partnership between DFC and CRDB totaling $42.8 million (nearly TZS 100 billion) to increase financing opportunities for micro, small, and medium-sized enterprises (MSMEs) that would not otherwise be able to obtain financing.
Mohammed Mvumbagu - U.S. Embassy Tanzania

By reducing lending requirements, the credit facility will improve access to finance to the health, education, MSMEs and informal sectors.

For Immediate Release

Thursday, June 30, 2022

Dar es Salaam, 30 June 2022 at a ceremony held at the CRDB Bank Headquarters in Dar es Salaam, Tanzania, U.S. Ambassador to Tanzania Dr. Donald J. Wright affirmed the U.S. government’s commitment to strengthen Tanzania's economic diversification and resilience with a new partnership agreement.

Under the terms of the agreement, the United States Agency for International Development (USAID) and the United States International Development Finance Corporation (DFC) will collaborate with CRDB Bank to facilitate TZS 100BN in loans. The new partnership will assist CRDB Bank to expand access to finance for women and youth borrowers, the education & health sectors, MSMEs, and the informal sector throughout Tanzania.

"CRDB Bank is pleased to work with USAID and DFC to assist Tanzanian small businesses. MSMEs are critical to Tanzania's economy, and we believe that this collaboration will not only help extend credit but also advise and assist them in modernizing and digitizing their businesses. The highlight of this initiative is our commitment to encouraging Tanzanian women and youth entrepreneurs and being a meaningful partner in their entrepreneurial journey," said Abdulmajid Nsekela, Group CEO and Managing Director of CRDB Bank.

“We are confident this new partnership will be a successful tool to achieve U.S. government and CRDB Bank targets with respect to increasing financial inclusion, and improving health and education,” said Ambassador Wright. “We stand with the people of Tanzania to create a brighter and more prosperous future toward the country’s journey to self-reliance.”

This partnership is intended to boost the following key areas:

  • Loans in the Medical Field: The Bank will finance up to TZS 20.3 billion in loans to the health sector. The loans will be used to support areas including: hospitals, health centers, clinics, diagnostic centers, pharmacies, maternal health facilities, procurement of medical equipment, construction and renovation of health facilities.
  • Loans in the Education Sector: The Bank will finance up to TZS 37.5 in loans to the education sector to support areas in the education value chain, including: private for-profit education establishments; non-profit education establishments; faith-based pre-primary, primary, or secondary schools, enterprises that directly serve the education sector, and businesses that provide education-related equipment or materials.
  • Loans to MSMEs: The bank will finance up to TZS 17.9 billion to MSMEs. The bank’s focus will include the following areas: businesses from all sectors of the economy, financial support for working capital, equipment procurement, construction, and restructuring of commercial properties for business.
  • Loans to the  informal sector: The bank will finance up toTZS 23.1 billion to support informal businesses from all sectors of the economy, with priority for businesses owned and operated by youth and women.

Last updated: August 04, 2022

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