DAR ES SALAAM - In a significant move to bolster investments in key economic sectors, CRDB Bank and the African Export-Import Bank (Afreximbank) have entered into a strategic partnership. The collaboration was formalized with the signing of a $115 million facility agreement at the Intra-African Trade Fair (IATF) 2023 in Cairo, Egypt, today.
This new agreement earmarks $110 million for the parent company of CRDB Bank and an additional $5 million for its subsidiary in Burundi. The funds are intended to enhance investments across various sectors, including agriculture, oil and gas, and trade. This development represents a transition from mere transactional interactions to a strategic alliance that aims to promote shared growth and prosperity.
The deal comes on the heels of a productive period for CRDB Bank. Just last month, the bank secured a substantial $150 million facility agreement with Intesa Sanpaolo (OTC:ISNPY) and Investec Bank. Additionally, it successfully raised Sh171.82 billion from Green Bond sales, signaling strong market confidence in its operations and future prospects.
During discussions at the IATF 2023 Diaspora Day, Abdulmajid Nsekela, CEO of CRDB Bank Group, underscored Tanzania's welcoming environment for diaspora investments. He pointed out opportunities in the agriculture, infrastructure, health, and real estate sectors, specifically mentioning the Fumba Town project as an example.
Underlining this commitment to engaging with the diaspora, Nsekela highlighted policy amendments by the Tanzanian Central Bank that now allow diaspora members to open bank accounts and invest in their home country more easily. He also noted the establishment of the Diaspora Digital Hub (DDH), which is supported by CRDB Bank with an investment of Sh100 Million.
CRDB Bank has made concerted efforts to encourage diaspora investment through various services such as loans and advisory offerings. It has integrated its digital banking systems, including 'SimBanking,' 'Internet banking,' and TemboCard, with its Tanzanite Account to facilitate these investments. Moreover, the bank collaborates with leading remittance partners like Western Union (NYSE:WU), World Remit, Ria, and Upesi to streamline financial transactions for the diaspora community.
This series of strategic initiatives and partnerships underscores CRDB Bank's commitment to fostering investment within Tanzania and throughout Africa. With these developments, CRDB Bank is positioning itself as a key player in driving economic growth and facilitating cross-border trade on the continent.
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