CRDB gets Sh650 billion for long-term lending

Dodoma. CRDB Bank has set aside a total of Sh650 billion for long term lending as it seeks to play an increasingly important role in the government’s industrialization plans.

Tanzania envisions to become an industrialized middle income economy by the year 2025.

Some progress towards that goal are to be made during the current period whereby a total of Sh107 trillion – to be sourced from both the public and private sectors – is required as outlined in the second Five Year Development Plan which runs between financial years 2016/17 to 2020/21.

Speaking during the launch of CRDB’s main bank branch here yesterday, the bank’s managing director, Dr Charles Kimei said so far, the bank – which commands an asset base of Sh5.5 trillion – has managed to raise Sh650 billion specifically for long-term lending to the manufacturing sector.

“Understanding that industries require long term funds, we have managed to raise a total of Sh650 billion from international lenders including the International Finance Corporation and African Development Bank, SwedeFund and European Investment Bank for long term lending to the private sector,” he said.

The bank, he said, will raise the amount it loans to the manufacturing sector from 15 per cent to 20 per cent of its total loans.

SwedeFund and European Investment Bank.

Gracing the event, President John Magufuli, commended CRDB for move, saying it would help to lift people out of poverty.

He said if all privatized parastatals where operating like CRDB, the country would have made a big strides economically. “Unfortunate most of the privatized parastatals are not performing,” he said.

He also called for banks, now 58 in the country, to go to rural areas where there are big number of unbankable population.