DEG – Deutsche Investitions- und Entwicklungsgesellschaft mbH has announced a long-term loan of USD 50 million to CRDB Bank PLC in Tanzania. The financing, split into two tranches of USD 25 million each, is aimed at supporting small businesses, particularly in rural areas. Of the total amount, USD 10 million is backed by a guarantee from the European Fund for Sustainable Development Plus (EFSD+), part of the European Union’s development initiatives.
The EU guarantee is intended for investments that have significant developmental impact. CRDB Bank plans to use these funds to provide loans to small businesses, including those owned by women and young adults. This effort aligns with the United Nations Sustainable Development Goals (SDGs).
Monika Beck, member of DEG’s Management Board, said: “CRDB Bank is a long-standing customer of DEG. The current investment makes a vital contribution to the local economy and supports underserved rural businesses. The use the EU guarantee helps to mobilise investments that are particularly important in terms of their development impact, as they create jobs, increase local incomes and contribute to economic growth on the ground.”
Abdulmajid Nsekela, Chief Executive Officer of CRDB Bank, stated: “At CRDB Bank, we believe that empowering women and youth is a strategic investment in the future of our nation and the region. Through our partnership with DEG and the support of the EU guarantee, we are scaling up our efforts to provide inclusive financial solutions that unlock potential, nurture innovation, and drive sustainable growth. When we finance a dream, we do more than fund a business - we uplift families, transform communities, and build a resilient economy for generations to come.”
Small businesses play an important role in Tanzania’s economy by employing over five million people and generating local income. However, many lack access to formal financing channels; this investment seeks to address that gap.
DEG has operated in East Africa for over six decades. Through its subsidiary DEG Impulse, it also supports innovative business models across Tanzania and other countries in the region. These activities include targeted funding for fintech companies and mobile payment startups under programs like develoPPP Ventures that aim to improve access to financial services and promote greater financial inclusion.