The loans will target sectors with potential to transform micro, small and medium enterprises, including renewable energy, waste recycling, clean cooking solutions and eco-friendly transport
Dar es Salaam. CRDB Bank has launched a special credit facility to support businesses and projects that focus on environmental protection as part of its broader strategy to address climate change.
The loans, known as Green Loans, were introduced by the bank’s Chief Commercial Officer, Boma Raballa, during an event attended by stakeholders committed to social and environmental sustainability.
“In 2023, our bank issued a Green Bond listed on both the Dar es Salaam Stock Exchange and the Luxembourg Stock Exchange. It was successfully sold, raising Sh171.82 billion.
Today, I am pleased to invite entrepreneurs and business leaders with green projects to apply for financing to help them implement their initiatives effectively,” he stated.
Mr Raballa explained that the loans will focus on sectors with the potential to transform micro, small, and medium enterprises, including renewable energy, waste recycling, clean cooking solutions, and eco-friendly transport.
He emphasised that this initiative reflects CRDB Bank’s long-term commitment to increasing financing for renewable energy, sustainable agriculture, and climate-smart social projects.
He also mentioned the bank’s aim to help more than two million Tanzanians transition from using firewood and charcoal to renewable alternatives such as solar energy, improved cookstoves, and clean energy systems.
This shift would reduce carbon emissions, protect forests, improve public health, and promote a green economy.
“We have already started implementation in several regions, and our goal is to expand nationwide within the next five years,” Mr Raballa added.
According to him, some clients have already begun to benefit from this facility, with over Sh157 billion disbursed to qualifying projects in agriculture, energy, and other sectors.
CRDB has designed favourable loan conditions, extended repayment terms, and provides capacity-building support, which includes entrepreneurship training, financial management, and innovative technologies.
The Green Bond marks the first phase of a five-year Medium-Term Note Programme aimed at raising Sh780 billion, equivalent to $300 million. CRDB Bank is the only financial institution in Tanzania and the first in sub-Saharan Africa to be accredited by the United Nations Green Climate Fund.
Through this accreditation, the bank has secured $100 million to implement the Tanzania Agriculture Climate Adaptation Technology Deployment Programme (TACATDP), with CRDB contributing an additional $100 million, resulting in a total project investment of $200 million.
In executing this program, CRDB is collaborating with the International Finance Corporation (IFC), a subsidiary of the World Bank Group. IFC country manager Martine Valcin stated that rising production has increased demand for natural resources, making global cooperation essential for environmental protection.
