SMEs to get a boost from CRDB Bank

CRDB Bank has secured a 120 million US dollars (some 250bn/-) credit from Africa Development Bank (AfDB) to boost infrastructure development and SMEs financing. The lender, one of the largest in the country, signed the line of credit with AfDB in Nairobi Thursday, where a wide range of SMEs target to promote inclusive growth in the country. Also the loan will go a long way in boosting infrastructure development in the country as well as supporting the government agenda in industrialization. CRDB Bank Managing Director, Dr Charles Kimei said the loan facility has come at an opportune time and would inject the much needed capital to reinvigorate the economy. “We are happy to have received this loan at this time, and we believe this will excite our economy. “It is encouraging to note that CRDB Bank is increasingly being trusted by multinational institutions such as the AfDB,” said Dr Kimei in a statement yesterday. The CRDB head said that the loan facility presents a unique opportunity for the country’s entrepreneurs and industrialists to benefit from long-term loans to grow their businesses. “We have been receiving a huge number of loan applications, but most of them have not been honoured due to scarcity of funds that can be availed for long term lending. “But today, we are happy to announce that all requests will now be honoured since we have the funds. “…This line of credit will also scale up our lending to SMEs and women enterprises in both urban and rural areas, which will create more jobs and promote inclusive growth for Tanzania’s economy,” Dr Kimei said. The statement said the bank will consider supporting the Dangote Electricity Generating Project, Ilala Municipality’s Metropolitan Development Project and many more. On his part, AfDB Director General, Eastern Africa Regional Development and Business Delivery Office, Mr Gabriel Negatu said poor infrastructure has been a major constraint for the region’s growth. “Tanzania plays a key role in regional trade in terms of opening different countries to the world. This calls for faster development of its ports and airports to make East Africa more competitive in doing business,” Mr Negatu said. The line of credit is expected to spur regional trade and promote integration through expanding capacity of Tanzania’s port and airport, which will also stimulate tourism in the region. On top of that, the statement said, the facility was also intended for onward lending to small enterprises and women who have in the past been excluded from formal financial services. “The SME sector is also key to create more jobs. This project will support a wide range of SMEs across agriculture, construction, manufacturing, education and services in order to promote inclusive growth in the country,” Mr Negatu said.