Proparco and FMO support CRDB's commitment to SMEs and green projects in Tanzania

CRDB Bank PLC is a leading financial institution in Tanzania, with 4.3 million customers and an effective presence in Burundi and in the Democratic Republic of Congo. CRDB is at the forefront of financing high-impact sectors such as agriculture, and, as the first bank in Tanzania to be certified by the Green Climate Fund (GCF), has strong climate finance objectives. CRDB is also very active in financing women-owned businesses, through its special initiative “Malkia” (“Queen” in Swahili) which offers tailor-made products for women entrepreneurs.

Through this project, CRDB is joining the 2X Challenge, a gender-focused initiative launched by France and its fellow G7 partners to promote SMEs and women's entrepreneurship. Proparco’s financing is testament to France's commitment to increase women's integration in financial and banking services.

After a first transaction in 2022, Proparco is renewing its support to CRDB and is strengthening its partnership with FMO. The successful collaboration in 2022 paved the way for this new operation that will support CRDB in its strategy to increase lending in the areas of climate, agriculture, MSMEs and women, and at the same time to finance its subsidiary in Burundi.

The project is expected to finance around 1,500 MSMEs and SMEs, in the context of the Choose Africa initiative, the AFD Group program that aims to support African entrepreneurs.

 “We are pleased to partner with our fellow DFI, FMO, to provide substantial financing of USD 125 million to CRDB Bank. CRDB, the first bank in Tanzania to be certified by the Green Climate Fund, is a key driver of a more inclusive and sustainable future in the region. With its significant presence in the agricultural sector and innovative approaches to financing, the bank plays a pivotal role in transforming industries and fostering economic resilience while promoting sustainability and inclusion. This new project will enable CRDB to enhance its green lending capabilities and further support agricultural value chains. Additionally, CRDB has made a pivotal decision to join the 2X Challenge initiative, reaffirming its commitment to fostering women’s entrepreneurship and advancing gender inclusion in the region." said Emmanuelle Riedel-Drouin, Global head, Lending operations at Proparco.

Juan Jose Dada, Director Financial Institutions at FMO, added, “Through our partnership with Proparco, we’re thrilled to support CRDB as it grows its SME portfolio and provides sustainable impact across Tanzania and in Burundi through CRDB and its subsidiary. Via this investment, not only are we supporting agriculture businesses and green assets, we’re also jointly improving livelihoods of underserved segments, including women-owned SMEs. We look forward to our continued partnership!”