MICROCAPITAL BRIEF: Cooperative Rural Development Bank (CRDB) of Tanzania, International Finance Corporation (IFC) Sign $75m Agreement to Support Small, Medium-Sized Businesses Including Those Owned by Women, Involved in Agriculture

The International Finance Corporation (IFC), the private-investment arm of the US-based World Bank Group, and the Cooperative Rural Development Bank (CRDB), a commercial bank in Tanzania, recently signed an agreement worth USD 75 million to support financing to small businesses in the country, particularly agribusinesses and companies owned by women. Financing will be disbursed by IFC for on-lending to CRDB clients, and IFC will deliver advisory services in trade and warehouse financing to small enterprises. USD 25 million, which will be allocated for the agricultural commodity sector, will be delivered via IFC’s Global Warehouse Finance Program, and USD 10 million will be delivered through IFC’s Global Trade Finance Program. The remaining USD 40 million is intended to be used for small and medium-sized enterprises, with USD 6 million of this amount channeled through IFC’s Global Small and Medium Enterprise (SME) Finance Facility.

CRDB reported total assets of USD 2.1 billion as of 2013. IFC has 184 member countries and reported total assets of USD 77.5 billion as of fiscal year-end 2013.

By Juan Blanco, Research Associate

About Cooperative Rural Development Bank (CRDB)

Cooperative Rural Development Bank (CRDB) is a commercial bank in Tanzania that provides banking services to individuals and small, medium-sized and large corporate clients. As of 2013, CRDB reported total assets of USD 2.1 billion. Bank stock is publicly traded on the Dar es Salaam Stock Exchange.

About International Finance Corporation

A member of the US-based World Bank Group, the International Finance Corporation (IFC) offers loans, equity investments, advisory services and technical assistance to private companies with the intent of alleviating poverty and promoting open and competitive markets in developing countries. IFC has 184 member countries and reported total assets of USD 77.5 billion as of fiscal year-end 2013.

Sources and Additional Resources

[1] IFC, “IFC and CRDB Bank commit to support SME and agribusiness sectors in Tanzania,” April 11, 2014, http://ifcext.ifc.org/ifcext/pressroom/IFCPressRoom.nsf/0/7E00898A1D1C17BA85257CB70068E1B8

MicroCapital Story, April 16, 2014, “International Finance Corporation (IFC) Commits Support Worth $300k to Back Newly Licensed AB Bank Rwanda, 8th Member of Access Microfinance Holding,” https://www.microcapital.org/microcapital-brief-international-finance-corporation-ifc-commits-support-worth-300k-to-back-newly-licensed-ab-bank-rwanda-8th-member-of-access-microfinance-holding/

MicroCapital Story, March 11, 2014, “Goldman Sachs, International Finance Corporation (IFC) Announce $600m Fund for Women-owned Small, Medium-Sized Enterprises (SMEs),” https://www.microcapital.org/microcapital-brief-goldman-sachs-international-finance-corporation-ifc-announce-600m-fund-for-women-owned-small-medium-sized-enterprises-smes/

MicroCapital Story, February 11, 2014, “International Finance Corporation (IFC) Loans $4m to Grooming Centre in Effort to Reach 780k Nigerian Microenterprises,” https://www.microcapital.org/microcapital-brief-international-finance-corporation-ifc-loans-4m-to-grooming-centre-in-effort-to-to-reach-780k-nigerian-microenterprises/

MicroCapital Story, February 22, 2012, “Zantel Tanzania Rebrands Mobile Cash Service Z-Pesa as Ezy Pesa, Adds Salary Access Option, Microinsurance, Linkage to CRDB Bank Accounts,” https://www.microcapital.org/microcapital-brief-zantel-tanzania-rebrands-mobile-cash-service-z-pesa-as-ezy-pesa-adds-salary-access-option-microinsurance-linkage-to-crdb-bank-accounts/

MicroCapital Universe Profile: Cooperative Rural Development Bank (CRDB), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Cooperative+Rural+Development+Bank+%28CRDB%29

MicroCapital Universe Profile: International Finance Corporation (IFC), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=International+Finance+Corporation+%28IFC%29#Description_

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