TZS 100BN unlocked for education, health, micro, small and medium enterprises and informal sectors

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 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, 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, and maternal health facilities, procurement of medical equipment, and 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 to TZS 23.1 billion to support informal businesses from all sectors of the economy, with priority for businesses owned and operated by youth and women.