CRDB Bank has signed a $110 million bouquet of financing facilities with the African Development Bank (AfDB) and the African Guarantee Fund (AGF) that seeks to boost access to finance women owned small and Business Enterprises (SMEs).
According to a statement seen by The Business Wiz, AfDB signed a$60 million financial package comprising $ 50 million subordinated debt to support CRDB’s regional expansion efforts and a senior loan of $ 10 million to support CRDB’s efforts in accelerating access to finance for women SMEs in Tanzania.
The facility is also coupled with $175,000 technical assistance grant through AfDB’s AFAWA Initiative supported by the Women Entrepreneurship Initiative (WeFI) to, strengthen CRDB’s capacity to support women entrepreneurs in Tanzania to become more bankable.
The African Guarantee Fund (AGF) has also renewed its guarantee line to CRDB Bank with $ 50 million which includes the AFAWA Guarantee for Growth component to de-risk the women’s market and further support the growth of women SMEs.
The AFAWA Guarantee for Growth is part of the African Development Bank’s AFAWA initiative which aims to unlock up to $ 5 billion for women businesses by 2026.
According to Nnenna Nwabufo, Director General for East Africa, African Development Bank, “This tripartite partnership is a game changer particularly to bridge the financing gap for women entrepreneurs.”
Nwabufo added, “More importantly, it adds to Tanzania’s efforts to close the access to finance gap for women entrepreneurs, which is estimated at $1.6 billion”
Abdulmajid Nsekela, CEO and Managing Director of CRDB Bank Group said the bank was delighted to have closed the deal.
“We are very excited to have closed this agreement. The subordinated loan facility will improve the Bank’s overall capitalisation and support future growth and regional expansion without jeopardizing capital ratios. I’d like to thank our long-term partners AfDB and AGF for their ongoing suppor,” said Abdulmajid Nsekela, CEO and Managing Director of CRDB Bank Group.
The bank is currently finalizing its move to the DRC while also considering expanding into other East and Central African countries.
Nsekela also stated that the agreement with AfDB and AGF will support CRDB Bank’s commitment to assisting SMEs in building resilience and closing the working capital gap.
“The $10 million credit line and $50 million guarantee will strengthen our ability to support many women-owned businesses through our Women Access to Finance Initiative, which is run by CRDB’s Malkia,” he said.