CRDB sets aside Sh650 billion for manufacturers

Dodoma. CRDB Bank has set aside Sh650 billion for long-term lending as it seeks to play an increasingly active role in the government’s industrialisation plans.

Tanzania envisages becoming an industrialised middle income economy by 2025.

Some progress towards that goal has been made, whereby 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 through 2016/17 to 2020/21.

Speaking during the launch of CRDB’s main bank branch in Dodoma yesterday, the CRDB Bank managing director, Dr Charles Kimei, said so far the bank, which commands an asset base of Sh5.5 trillion, had 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 Sh650 billion from international lenders, including the International Finance Corporation, the African Development Bank, SwedeFund and the European Investment Bank for long-term lending to the private sector,” he said.

He explained that the bank would raise the amount it loaned to the manufacturing sector from 15-20 per cent of its total loans.

Gracing the event, President John Magufuli commended CRDB Bank for the move, saying it would help lift people from poverty.

He said if all privatised parastatals operated like CRDB Bank, the country would have made great strides economically. “Unfortunately, most of the privatised parastatals are not performing,” he noted.

He also called on banks, now 58 in the country, to extend their services to rural areas, where there was a big number of the unbankable population.

CRDB Bank was established in 1996 and was listed on the Dar es Salaam Stock exchange in June 2009. Over the years, it has expanded and opened branches in various parts of the country.