CRDB Bank Invites Tanzanians to Seize Green Bond Opportunities for Environmentally Friendly Projects

As part of its strategy to step up efforts in addressing the impacts of climate change, CRDB Bank has launched dedicated loans to support projects and businesses that protect the environment. The special loans, branded as Green Loans, were launched by CRDB Bank’s Chief Commercial Officer, Boma Raballa, in the presence of stakeholders working to empower communities to implement projects that promote social and environmental sustainability. “In 2023, our Bank successfully issued a Green Bond, which was listed on the Dar es Salaam Stock Exchange and the Luxembourg Stock Exchange, enabling us to raise a total of TZS 171.82 billion. Today, I am delighted to invite entrepreneurs and business owners with environmentally friendly projects to access funding that will allow them to successfully implement their initiatives,” said Raballa. According to Raballa, the funds will primarily focus on the following sectors that deliver value to small and medium enterprises (MSMEs): i. Angaza Loans – to support the adoption of solar energy and transform sectors such as education, health, hospitality, industrial production, and the oil and gas industry. ii. Clean Energy Loans – to promote the use of clean cooking energy in schools, industries, and hotels by replacing traditional cooking infrastructure with LPG, biogas, and electricity-powered solutions, alongside energy-efficient appliances such as refrigerators, cold rooms, and air conditioners. iii. Waste Collection & Recycling Loans – targeting businesses and creative enterprises engaged in waste collection and recycling. iv. Clean Transport Loans – to support the transportation sector in adopting clean and environmentally friendly mobility solutions. Raballa emphasized that the launch of these loans for eco-friendly projects is part of CRDB Bank’s long-term strategy to expand access to finance for renewable energy, sustainable agriculture, MSMEs, and community initiatives that reduce carbon emissions. “Through this program, we aim to empower more than 2 million Tanzanians to transition from using firewood and charcoal to alternative energy sources such as solar power, improved cookstoves, and renewable energy systems. This will help protect forests, cut carbon emissions, improve public health, and build a green economy. We have already started implementation in several regions and plan to scale up nationwide within the next five years,” said Raballa. He further explained that some customers have already benefited from these funds, particularly those who had submitted their applications earlier, with the Bank having already disbursed over TZS 157 billion into projects that met the criteria, including those in agriculture, energy, and other sectors. “We recognize the challenges entrepreneurs face, particularly limited access to affordable capital and business management skills. For that reason, we have set favorable loan terms, longer repayment periods aligned with business realities, and capacity-building support through entrepreneurship training, financial management, and innovative technology adoption. At CRDB Bank, we believe economic development must go hand in hand with environmental protection,” Raballa added. The Green Bond was the first phase of a five-year Medium-Term Program aimed at raising TZS 780 billion (equivalent to USD 300 million). CRDB Bank remains the only financial institution in Tanzania—and the first in Sub-Saharan Africa—to be accredited by the United Nations Green Climate Fund (UN-GCF), which enabled it to secure USD 100 million for the implementation of the Tanzania Agriculture Climate Adaptation Technology Deployment Program (TACATDP). CRDB Bank has co-invested an additional USD 100 million, bringing the program’s total value to USD 200 million. In executing this program, CRDB Bank is partnering with the International Finance Corporation (IFC), a World Bank subsidiary, to ensure Tanzanians join the rest of the world in protecting the planet and its biodiversity. IFC Country Manager, Martine Valcin, said that the surge in industrial and production activities has increased the demand for natural resources, whose over-exploitation poses threats to the environment. She stressed the importance of global cooperation in safeguarding ecosystems.