The German Investment and Development Company (DEG), a subsidiary of the German Investment Corporation (KfW), is providing CRDB Bank PLC with a new long-term loan of USD 50 million to expand financing for small businesses in Tanzania.
The financing package consists of two tranches of USD 25 million each, with USD 10 million secured by a guarantee through the European Union’s European Fund for Sustainable Development Plus (EFSD+).
CRDB Bank will use the resources to provide loans to small businesses in rural areas, particularly those owned by women and young adults.
The financing is designed to support job creation, innovation, and local income generation, contributing to the achievement of the United Nations Sustainable Development Goals.
Monika Beck, member of the Management Board of DEG, commented: “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.”
Abdulmajid Nsekela, Chief Executive Officer of CRDB Bank, added: “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 major component of Tanzania’s economy, employing more than five million people and serving as a key source of local income.
However, many operate without access to formal financing. The DEG loan is expected to help close this gap.
The DEG was established in 1962 and finances long-term investments of private companies in developing and emerging market countries.
It has been active in East Africa for more than 60 years and supports businesses across the region through its subsidiary DEG Impulse.
In Tanzania, its activities include financing fintech and mobile payment startups under the develoPPP Ventures programme to enhance access to financial services and promote financial inclusion.
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