Washington, DC, April 11, 2014 - The International Finance Corporation (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.
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.
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