CRDB Bank and the African Export-Import Bank (Afreximbank) have signed a Memorandum of Understanding (MoU) for a substantial USD 115 million facility agreement. This agreement, inked during the ongoing Intra-African Trade Fair (IATF) 2023 in Cairo, Egypt, aims to fuel investments in critical sectors, including agriculture, oil and gas, and trade.
According to CRDB Bank, the MoU comprises USD 110 million allocated to CRDB Bank's parent company and an additional USD 5 million earmarked for its subsidiary, CRDB Bank Burundi. The Tanzanian lender emphasized that this MoU represents a transition from a mere transactional association to a strategic partnership, underlining their commitment to long-term mutual growth and development.The funds from this facility will not only bolster investments but will also support digital infrastructure initiatives, capacity-building programs, technical assistance, advisory services, and cross-border business expansion.
Just a month ago, CRDB Bank secured a USD 150 million facility agreement with Intesa Sanpaolo and Investec Bank to strengthen its funding capabilities in the Small and Medium-sized Enterprises (SME) sector. Furthermore, the bank successfully raised TZS 171.82 billion through the sale of its Green Bond.The formalization of the agreement with Afreximbank occurred during the IATF 2023 Diaspora Day, where high-level discussions centered on exploring collaborative potential between Africa and its diaspora for a shared and prosperous future.
CRDB Bank Group CEO and Managing Director, Abdulmajid Nsekela, actively participated in these discussions and commended the efforts of the Tanzanian government in creating a conducive environment for diaspora investments and access to banking services. He particularly praised the recent launch of the Diaspora Digital Hub (DDH) system, aimed at understanding and meeting the diverse needs of the diaspora more effectively. Nsekela stressed the importance of enhancing policies to facilitate diaspora participation in investment opportunities and highlighted the wealth of investment opportunities available to the diaspora in sectors such as agriculture, infrastructure, health, and real estate.
He also emphasized the significance of stakeholder collaboration and cited the successful partnership between the Tanzanian government and various institutions, including CRDB Bank, in establishing the Diaspora Digital Hub.CRDB Bank is dedicated to providing convenient services through its Diaspora Banking unit, offering loans and investment advisory support to encourage diaspora investment in key sectors.The bank's Tanzanite Account is designed to incentivize diaspora banking at home, offering exclusive benefits such as a condolence payout of TZS 5 million and coverage for transportation costs up to TZS 15 million in the event of a customer's demise. The account is seamlessly integrated with digital banking systems, further streamlining transactions for diaspora customers.
Collaborations with leading remittance partners like Western Union, World Remit, Ria, and Upesi enable CRDB Bank to facilitate foreign remittances, empowering the diaspora to achieve various financial goals.The Third IATF 2023 has been organized by Afreximbank in collaboration with the African Union (AU) and Africa Free Trade Area (AfCTA). The African Union recognizes the Diaspora as the sixth regional economic community for Africa, acknowledging its significant potential in promoting the interests and development of Africans and people of African descent worldwide.