AfDB approves $120 million credit line for Tanzania’s CRDB Bank
Summary
The AfDB said the credit line will help the Tanzanian bank finance SME projects as well as infrastructure development.
The African Development Bank (AfDB) said on Thursday that it has approved a $120 million line of credit (LOC) for CRDB Bank Plc, Tanzania’s largest commercial bank.
The AfDB said the LOC will help the bank finance SME projects as well as infrastructure development, which has been a major constraint to Tanzania’s economic growth.
By leveraging CRDB’s branch network and agents, the AfDB said the LOC will scale up lending to SMEs and women enterprises in both urban and rural areas to create more jobs and to promote inclusive growth for Tanzania’s economy.
“The LOC will spur regional trade and promote regional integration through expanding capacity of the country’s port and airport, which will also stimulate tourism and government revenues,” the AfDB said
Established in 1969 and listed on the Dar es Salaam Stock Exchange in 2002, CRDB Bank operates over 120 branches across Tanzania and 3 branches in Burundi.
In 2008, the AfDB approved a risk-sharing facility for CRDB Bank to promote SMEs in the agriculture sector, which benefited over 270 SMEs. Since then, CRDB Bank has expanded its SME loan portfolio, partnering with over 2,125 agents or non-banking intermediaries to widen its reach.
The AfDB’s financing has also enabled CRDB Bank to provide services in rural areas where establishing branches may be uneconomical, thereby promoting financial inclusion.
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