TANZANIA – CRDB Bank, a financial services provider, has secured TSh182 billion (US$78.41m) from private sector financier, Proparco to bolster the bank’s lending capacity to micro, small and medium-sized enterprises (MSMEs) in the country.
The amount, in form of a credit line and two portfolio guarantees, will be channelled towards financing MSMEs in line with the country’s economic growth agenda, focusing on women-led enterprises and those recovering from Covid-19 disruptions.
CRDB Bank Group CEO and Managing Director, Abdulmajid Nsekela said yesterday in Dar es Salaam that the partnership was timely and would go a long way in revitalizing the MSME sector and spurring economic growth.
“The last three years have been difficult, particularly for MSMEs, as majority have grappled with a lot of uncertainty,” Mr Nsekela said.
“We expect that this guarantee facility, alongside our innovative financial solutions, will provide the much-needed support to business owners and enable them to emerge financially healthier and stronger.”
The credit line and portfolio guarantee granted by Proparco comprise of a US$50 million credit line (TSh115bn) to support the bank’s financing activity towards MSMEs.
The Proparco Regional Director East Africa, Jean-Benoît du Chalardsaid that the credit line and two guarantees will contribute to Choose Africa, a French initiative launched in 2018 and dedicated to supporting African entrepreneurs, start-ups and MSMEs.
“Proparco is pleased to initiate this relationship with CRDB and to welcome it as a new partner of the Choose Africa initiative,” said Jean-Benoît du Chalard.
“The comprehensive package of support illustrates Proparco’s commitment to Tanzanian MSMEs and CRDB to provide the right set of products and tools, to meet the needs of entrepreneurs.”
The EUR8.0 million (TSh20bn) guarantee to help CRDB support MSMEs that have been particularly affected by the Covid-19 crisis.
“This guarantee offers made possible thanks to resources specially allocated by the French government, as part of the resilience component of AFD Group’s Choose Africa initiative,” the statement said.
Another EUR18.5 million (TSh47bn) EURIZ guarantee, will cover up to 70per cent of loans granted to women entrepreneurs.
“This guarantee will be supplemented with a technical assistance grant to reinforce the capacity of the CRDB to serve them,” the statement said.
Proparco appoints new CEO
Françoise LOMBARD graduated from Sciences Po and is an alumna of the National School of Administration.
The CEO develops the company’s main orientations and supervises the operational implementation of the strategy determined by the Board of directors.
She relies on various internal committees in charge of studying opportunities for collaboration and partnerships that will promote the development of the private sector within Proparco’s sphere. The CEO of Proparco is a member of the Board of Directors of EDFI.
“I am delighted to succeed Grégory Clémente as CEO of Proparco, and very excited to contribute to addressing the many challenges of private sector development in our geographies of operation,” she said.
“I would like to thank AFD Group and the Board of Directors of Proparco for their confidence.”