By Business Insider Reporter
Tanzania’s leading lender, CRDB Bank PLC, has secured a new US$ 50 million loan from the German Investment and Development Company (DEG), a subsidiary of KfW, to expand financing for small businesses, women, and youth in rural areas.
The package, structured in two tranches of USD 25 million each, includes a USD 10 million guarantee under the European Fund for Sustainable Development Plus (EFSD+), backed by the European Union.
The financing is expected to unlock affordable credit for thousands of underserved businesses, fueling job creation, innovation, and local economic growth.
Catalysing rural entrepreneurship
Small businesses employ more than five million people in Tanzania and play a crucial role in driving grassroots development.
However, many remain excluded from formal financing. With the DEG loan, CRDB Bank will scale up lending to rural enterprises, particularly those run by women and young entrepreneurs.
“This investment makes a vital contribution to the local economy and supports underserved rural businesses,” said Monika Beck, Member of DEG’s Management Board. “The EU guarantee helps mobilise investments that create jobs, increase incomes, and strengthen economic growth on the ground.”
CRDB: Financing dreams, transforming communities
CRDB Bank’s Chief Executive Officer, Abdulmajid Nsekela, welcomed the financing as a game-changer in advancing inclusive economic development.
“At CRDB Bank, we believe that empowering women and youth is a strategic investment in the future of our nation and region,” he said. “Through our partnership with DEG and the EU guarantee, we are scaling up 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.”
A longstanding partnership
DEG has been active in East Africa for over six decades, financing private sector investments that promote sustainable development.
In Tanzania, its support extends beyond banking to fintech startups and mobile payment platforms through its develoPPP Ventures programme, aimed at improving financial inclusion.
For CRDB, the new funding aligns with its long-term strategy to increase access to finance for SMEs and advance Tanzania’s economic transformation agenda.
With regional food security and youth unemployment dominating policy discussions, analysts see this partnership as timely. It not only plugs financing gaps but also strengthens Tanzania’s position as a frontier market for inclusive investment.
