DEG promotes small businesses in Tanzania

USD 50 million loan for commercial bank CRDB

DEG – Deutsche Investitions- und Entwicklungsgesellschaft mbH is expanding its commitment in Tanzania and providing the CRDB Bank PLC with a long-term loan of USD 50 million. CRDB Bank is now a leading commercial bank in Tanzania that finances primarily small businesses in rural areas. The loan package comprises two tranches of USD 25 million each. A total of USD 10 million of the financing is secured by a guarantee through the EU’s European Fund for Sustainable Development Plus (EFSD+).

Loans for local small business owners

The EU guarantee is available for investments of developmental relevance. CRDB Bank will use the resources to finance loans to small businesses, including those owned by women and young adults, thereby contributing to the achievement of the UN Sustainable Development Goals (SDGs).

"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 of 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,” said Monika Beck, member of the Management Board of DEG.

Contributions to local incomes and prospects

Abdulmajid Nsekela, the Chief Executive Officer of CRDB Bank, said: “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 are a key element of the Tanzanian economy – employing more than five million people and creating local income. Few of these businesses have access to formal financing; the investment will help to close this gap.

DEG has been active in East Africa since its foundation more than 60 years ago. It is also involved in Tanzania and other East African countries through its subsidiary DEG Impulse, enabling on-the-ground support for innovative business models. This includes targeted funding for fintech and mobile payment startups in Tanzania through the develoPPP Ventures programme, to facilitate access to financial services for more people and promote financial inclusion.

Further information

Banking: Finance plus advisory services