According to a 2008 annual report, the CRDB Microfinance Services Company (CRDB MF) made an annual profit, before taxes, of USD 192,000. CRDB MF also reports the amount of loans disbursed throughout the year as USD 36.6 million and the outstanding loan portfolio as USD 44.1 million. CRDB MF does not directly lend to clients, but works with Savings and Credit Cooperative Societies (SACCOS), Savings and Credit Associations (SACAS), financial non-government organizations (NGOs), and Community Banks to disburse loans, provide technical support, and facilitate bank accounts. In 2008, 31 MFIs joined CRDB MF bringing the total of partner organizations to 376. Cumulatively, the MFIs operate in 109 districts and serve 489,030 clients. CRDB MF, founded in 2004, is the microfinance division of CRDB Bank, a private commercial bank founded in 1996 in Tanzania. CRDB Bank’s largest individual stakeholder is the Danish International Development Agency (DANIDA), which owns 30 percent of the bank. Private individuals own 37 percent of the bank. MicroCapital has previously reported on CRDB Bank’s USD 52 million loan to the Tanzania Electric Supply Company (Tanesco), a government company.
Although CRDB MF does not directly lend to the public, the company provides a range of services including technical support for its selected partner MFIs. The four criteria for eligibility set for potential partners are a reliable administration, participating in CRDB’s MFI training programs, good loan performance reports, and clean finding reports. CRDB MF also offers the MFI Juhudi Account for partners, with a minimum opening balance of USD 75. As of December 2008, deposits of the MFIs in CRDB Bank stood at USD 7.2 million. During 2008, a new microfinance support centre was opened in Kilombero while there are currently plans to open four further centers in Njombe, Mbozi, Geita and Zanzibar.
CRDB MF does not report to the MIX Market and has not released its annual report to the public. However, several annual and quarterly financial reports are available for CRDB Bank. The Bank as a whole reported total assets of USD 1.2 billion in March 2009 as well as USD 1.05 billion in liabilities and paid up share capital totalling USD 40.6 million. Net income for the quarter was USD 7 million. According to a 2008 annual report, profit before tax rose 16 percent year over year to USD 45.3 million and assets grew 27 percent to USD 1.09 billion. Operating income for the year was USD 102.5 million. The net loan portfolio grew 42 percent from the previous year to USD 631.5 million. Agriculture loans constitute 28 percent of the loan portfolio, followed by trade and commerce loans at 15 percent. Deposits in the bank grew 26 percent to USD 933.2 million.
Both CRDB Bank and CRDB MF are involved in more extensive microfinance schemes. CRDB MF has disbursed USD 17.3 million to 203 microfinance institutions through the government’s Uwezeshaji Credit Guarantee Scheme, exceeding the government’s goal by USD 679,000. CRDB MF also participated in the Mwananchi Empowerment Scheme, a program of the National Economic Empowerment Council aimed at increasing loans in select regions. CRDB Bank itself participates in the Bank of Tanzania’s SME Credit Guarantee Scheme, providing loans between USD 3,800 and USD 377,000 to SMEs. CRDB Bank approved 2,463 SME loans in 2008 for USD 45.6 million in loans disbursed.
Further developments for CRDB Bank in 2008 include the shareholders’ positive vote to list the bank’s shares on the Dar Es Salaam stock exchange. 2008 was also the first year of CRDB’s 5 year Strategic Business Plan to improve bank services and develop new products, described in the annual report. In terms of physical expansion, CRDB built 9 new branches, for a total of 56 branches, and 27 ATMs.
As for country indicators, the CIA World Factbook, reports the GDP, in terms of purchasing power parity, of Tanzania is USD 54.26 billion with a growth rate of 7.1 percent and a GDP per capita of USD 1,300. 80 percent of the labor force is engaged in agriculture although agriculture constitutes only 27 percent of GDP. The MIX Market lists 11 MFIsin Tanzania, most of which are NGOs.
Additional Resources:
“Microfinance Firm Gets Sh254m Profit”, By Zephania Ubwani, Published by The Citizen, June 2009
“The National Microfinance Bank of Tanzania helps Bail out the Tanzania Electric Supply Company (Tanesco) with a USD 56 million Loan“, by Amy Rennison, Published by MicroCapital, September 2007
CRDB Bank: March 2009 Balance Sheet
Bank of Tanzania: SME Credit Guarantee Scheme
By Goda Thangada, Research Assistant
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