DEG expands engagement in Tanzania with $50 million loan to CRDB bank
The DEG – Deutsche Investitions- und Entwicklungsgesellschaft mbH is increasing its involvement in Tanzania by providing a long-term loan of $50 million to the Cooperative Rural Development Bank Plc (CRDB). CRDB is a leading commercial bank in Tanzania that focuses on financing small businesses in rural areas. The loan package consists of two tranches of $25 million each, with $10 million of the financing secured through a guarantee under the EU program European Fund for Sustainable Development Plus (EFSD+).
The EU guarantee is available for projects of particular development significance. The funds from the loan package will be used to finance loans for local small business owners, especially women and young adults, making a significant contribution to achieving the UN Sustainable Development Goals (SDGs).
„CRDB Bank has been a long-standing client of DEG. With the current investment, we are strategically strengthening the local economy and supporting underserved businesses in rural areas together. The use of an EU guarantee helps mobilize investments with a high developmental impact – investments that create jobs, increase incomes, and promote local economic growth,“ said Monika Beck, Member of the Management Board of DEG.
Abdulmajid Nsekela, CEO of CRDB Bank, emphasized, „At CRDB Bank, we believe that empowering women and youth is a strategic investment in the future of our country and the region. Through our partnership with DEG and the support of the EU guarantee, we are intensifying our efforts to provide inclusive financial solutions that unleash potential, promote innovation, and drive sustainable growth. When we finance a dream, we do more than just support a business – we empower families, transform communities, and build a resilient economy for future generations.“
Small businesses play a vital role in the Tanzanian economy, employing over five million people and generating local income. Many of these businesses lack access to formal financing, and this initiative will help bridge that gap.
DEG has been active in East Africa for over 60 years. Through its subsidiary DEG Impulse, it is involved in Tanzania and other East African countries to support innovative business models locally. Through the develoPPP Ventures program, it specifically promotes startups in Tanzania in the Fintech and Mobile Payment sector to provide more people with access to financial services and strengthen financial inclusion.
Contact:
Barbara Schrahe-Timera
Tel.: +49 221 49861855
mailto:presse@deginvest.de
http://www.deginvest.de