Washington, DC, April 11, 2014—IFC,
a member of the World Bank Group, today signed a landmark $75 million agreement
with CRDB Bank that will help provide much needed support to small businesses,
particularly those owned by women, as well as to farmers and agribusiness
In Tanzania, there is a significant
financing gap for SMEs, and women-owned businesses are particularly disadvantaged
with only 15% reporting having access to a bank loan. Access to finance
is critical to helping them to grow their businesses and contribute to
economic development. IFC and CRDB Bank will partner to focus on underserved
SME and retail market segments as well as agribusiness producers and exporters.
Jean Philippe Prosper, IFC Vice President
for Sub-Saharan Africa, said: “IFC is committed to partner with CRDB Bank
to reach out to underserved communities in Tanzania. This is the beginning
of IFC’s collaboration with CRDB Bank and we hope to work more closely
to support economic development and promote job creation in the country.”
“Working with IFC, we intend to strengthen
our reach to SMEs and further promote agri commodity export. As a market
leader in Tanzania, we have a mandate to support these market segments
and are grateful to launch the collaboration with IFC,” said Dr. Charles
Stephen Kimei, Managing Director of CRDB Bank Group.
The investment will promote financing
for women-owned businesses, as well for farmers, capitalizing on CRDB Bank’s
position as a leader in financial inclusion in Tanzania. IFC also plans
to provide advisory services in the field of trade and warehouse financing
to strengthen CRDB’s operations.
The signing ceremony took place in Washington
DC during the World Bank-IMF Spring Meeting and was observed by the Finance
Minister Hon. Saada Mkuya Salum, Tanzanian Ambassador to the USA Liberata
Mulamula, and the Bank of Tanzania Governor Prof. Benno Ndulu.
The comprehensive investment package
consists of a $40 million loan targeting SMEs, particularly those owned
by women, including $6 million through IFC’s Global SME Finance Facility;
a $10 million trade line through IFC’s Global Trade Finance Program and
$25 million through IFC’s Global Warehouse Finance Program to support
the agricultural commodity business, including $10 million from the Global
Agriculture and Food Security Program’s (GAFSP) private sector window.
IFC, a member of the World Bank Group,
is the largest global development institution focused exclusively on the
private sector. Working with private enterprises in more than 100 countries,
we use our capital, expertise, and influence to help eliminate extreme
poverty and promote shared prosperity. In FY13, our investments climbed
to an all-time high of nearly $25 billion, leveraging the power of the
private sector to create jobs and tackle the world’s most pressing development
challenges. For more information, visit www.ifc.org
About CRDB Bank
CRDB Bank is the largest commercial
bank in Tanzania (market share: 18% by asset size, 20% by deposits). It
is listed on the Dar es Salaam Stock Exchange. It has regional ambitions,
having recently opened a subsidiary in Burundi which will focus on bottom
of pyramid, microfinance segment. CRDB Bank is currently owned by over
35,000 shareholders, one of the fastest growing banks in the country, with
a 20% share in the market for deposits, it operates in every region in
the country with a network of 103 branches, 311 ATMs, 15 Mobile branches,
1,162 Point of Sales (POS) terminals, 491 agents, and 441 microfinance
partners, including a focus on microfinance and helping Tanzanian SMEs.
For more information, visit http://www.crdbbank.com
IFC Global Warehouse Finance Program
IFC’s Global Warehouse Finance Program
(“GWFP”), created in 2010, aims to increase working capital financing
to farmers and agricultural players by leveraging their production. The
program supports the agriculture sector by providing banks with liquidity
or risk coverage backed by warehouse receipts or other inventory financing
schemes, which are used to provide financing in the form of short term
loans to producers and traders ahead of export. To date, IFC has financed
US$4.6 billion commodity finance transactions in more than 20 countries.
The program is expected to reach up to 241,000 farmers across emerging
markets in all regions and contribute to food availability for 15 million
people by 2016.
Global Agriculture and Food Security
The (GAFSP) is a multilateral mechanism
to assist in the implementation of pledges made by the global community
to support country-led investment plans. GAFSP Private Sector Window
(PSW) plays a catalytic role by supporting private sector investment projects
and promoting sustainable agriculture in developing countries. GAFSP aims
to improve the livelihoods of SMEs and small hold farmers through sustainable
solutions to improve access to finance and reduce risks in agriculture.
GAFSP is funded by five donors including the Netherlands, Canada, Japan,
United Kingdom through DFID, and the United States.
Global SME Finance Facility
Responding to a call from the G-20 to
bridge the trillion dollar financing gap faced by SMEs, IFC developed the
Global SME Finance Facility in partnership with international financial
institutions, commercial banks and donors, with the United Kingdom’s Department
for International Development. The purpose of the Facility is to
help banks and non-bank FIs in developing countries expand their services
to underserved SME segments. Through a combination of investment and advisory
services, the Facility aims to support and accelerate the trends that are
driving growth in the SME markets, with a particular focus on SMEs in fragile
and conflict-affected situations and on women-owned SMEs.