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Proparco is supporting Tanzanian SMEs with CRDB Bank
Project
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Signature date
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Location
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Tanzania
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Financing tool
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Financing amount (Euro)
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71555000
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Financing details
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USD 50m loan of 17/03/2022, TZS 48,161,484,195 portfolio guarantee of 28/03/2022, TZS 20,862,506,480 guarantee of 22/03/2022, about EUR 455 000 of technical assistance.
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Customer
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CRDB BANK TANZANIE
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Type of customer
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Financial institution
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Country of headquarters
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Tanzania
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Project number
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PTZ1050 / CTZ1094 / CTZ1095 /: CZZ2137
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Environmental and social ranking
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IF-B
The EURIZ guarantee benefits from the support of the European Union and the African, Caribbean and Pacific Group of States (ACP Group).
The content of this project information sheet falls under the sole responsibility of the Proparco and does not necessarily reflect the opinions of the European Union and the ACP Group. This information is given at the time of signature, without prejudice to any developments in the operation/project.
By signing a partnership with the Tanzanian bank CRDB, Proparco is contributing to increasing its capacity to finance the country’s micro, small and medium-sized enterprises (MSMEs), with a focus on MSMEs run by women or affected by the Covid-19 crisis.
Client presentation
CRDB is a leading bank in Tanzania. It was set up in 1996 and has been listed on the Dar es Salaam Stock Exchange since 2009. Its main shareholders are the Danish fund DANIDA and Tanzania’s Public Service Social Security Fund. The bank has the most extensive network of branches in Tanzania and is the first bank in the country to be eligible for the Green Climate Fund.
Project description
The project involves supporting the bank’s development of its SME loans, via a EUR 44.6m senior credit line and a EUR 18.5m EURIZ guarantee, as well as a technical assistance grant of EUR 455,000 to assist the bank with its loans for women entrepreneurs. A EUR 8m Choose Africa Resilience guarantee will also support companies affected by the health crisis.
Project impact
The main expected impacts of the project are:
- Support for the economic development of Tanzania by financing CRDB’s corporate clients, mainly made up of SMEs and microenterprises, which are historically unserved or underserved by the country’s banking sector;
- A contribution to formal employment in Tanzania, with some 4,800 jobs maintained;
- Support for private initiatives led by women entrepreneurs and “green” projects (renewable energies, water and sanitation, energy efficiency, green buildings…) through the EURIZ guarantee;
- Support for companies hard hit by the health crisis through the Choose Africa Resilience guarantee.
The E&S classification only concerns the loan, as guarantees do not benefit from an E&S classification.