CRDB Bank secures now green finance accreditation

Thursday November 14 2019

CRDB Bank CEO Abdulmajid Nsekela is

CRDB Bank CEO Abdulmajid Nsekela is congratulated by Dr Richard Muyungi, who is UN Green Climate Fund Board Member after the lender was accredited by the Fund. PHOTO | COURTESY 

By Gadiosa Lamtey @TheCitizenTZ news@tz.nationmedia.com

Dar es Salaam. CRDB Bank Plc, has been accredited by the United Nations Green Climate Fund (GCF) as the financial intermediary for the implementation of green financing in Tanzania.

A statement released by the lender yesterday said accreditation was announced Wednesday during the 24th Green Climate Fund (GCF) Board Meeting in Songdo, South Korea.

This followed an extensive due-diligence assessment, conducted by GCF to ascertain the bank’s preparedness in managing climate change programmes. Bank’s chief executive officer and manging director Abdulmajid Nsekela said the endorsement marks an important milestone in the lender’s history and that of the country.

It means CRDB Bank will be able to finance multiple large scale projects with high impact to the social and economic development of Tanzania.

CRDB Bank becomes the 3rd commercial bank in Africa to obtain this accreditation, after Ecobank Ghana and Attijariwafa Bank of Morocco.

Accredited entities carryout a range of activities that usually include the development of funding proposals and the management and monitoring of projects and programmes.

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Multiple projects can be funded simultaneously.

“We are proud of this achievement and excited because it gives us a unique opportunity to make a huge impact in Tanzania,” said Mr Nsekela.

“We want to play an active role in supporting development programmes in our country. We are particularly keen to support the government initiatives in energy, transport and infrastructure, industrialisation, health and wellness, food security, safe cities and environment.”

He said the bank is being working with GCF to support both public and private entities in implementing sustainable development projects, through provision of affordable loans, guarantees and equity.

“With this endorsement, we are confident that CRDB Bank will be able to finance different vital green projects to the tune up to $250 million per single project funding proposal,” Mr Nsekela said.

GCF director of Private Sector Facility, Mr Ayaan Adam said CRDB Bank’s accreditation is highly merited, owing to the lender’s portfolio strength and extensive client base within Tanzania and the Republic of Burundi.

“CRDB Bank is a very strong bank because it has a wide reach and presence, extending to two countries. This means the bank is aware of the realities of what is happening in the country,” Adam said.