CRDB Bank Al Baraka Sukuk: A secure investment opportunity with returns of up to 12 percent
Sponsored by CRDB Bank
The former President of the United Republic of Tanzania, Dr Jakaya Kikwete, presses a button to launch CRDB Al Barakah Sukuk, the first Sharia-compliant bond, at Johari Rotana Hotel in Dar es Salaam. On his right are the CRDB Bank Managing Director, Mr Abdulmajid Nsekela, CRDB Bank Board Chairperson, Prof Neema Mori and the Dar es Salaam Regional Commissioner, Mr Albert Chalamila while on his left are the CRDB Bank’s Sharia Advisory Board Chairperson Abdul Mohamed and religious leaders.
If innovation were a reward, then CRDB Bank would certainly book a seat in heaven, given how religious affiliated groups are now reaping big from both ethical, socially responsible and inclusive financial instruments solutions.
On August 9, 2025, CRDB Bank launched its CRDB Al Barakah Sukuk, a Sharia-compliant bond designed to enhance financial inclusion and facilitate investments in ethical and socially responsible projects both within and beyond Tanzania.
The CRDB Bank Managing Director, Mr Abdulmajid Nsekela, speaks at the launch of CRDB Al Barakah Sukuk, the first Sharia-compliant bond at a ceremony held at Johari Rotana Hotel in Dar es Salaam.
The bond aims to raise to the tune of Sh30 billion and USD5 million, with a green-shoe option of up to Sh40 billion and USD 7 million, respectively.
This makes the CRDB Al Barakah Sukuk the largest Sharia-compliant bond ever issued by a financial institution in Tanzania and the first dual-currency Sukuk in the Tanzanian market.
Some of the invited guests follow the speech of the CRDB Bank Group CEO, Abdulmajid Nsekela during the launch of CRDB Al Barakah Sukuk, the first Sharia-compliant bond at a ceremony held at Johari Rotana Hotel in Dar es Salaam.
This issuance is the third tranche under CRDB Bank’s five-year Medium-Term Note Programme, valued at USD300 million and approved by the Capital Markets and Securities Authority (CMSA).
It follows the historic launches of the Kijani Bond and the Samia Infrastructure Bond, both of which were oversubscribed, reflecting strong investor confidence in CRDB’s innovative financial offerings.
The official launching ceremony at the Johari Rotana Hotel in Dar es Salaam was graced by His Excellency Dr Jakaya Mrisho Kikwete, fourth President of the United Republic of Tanzania.
The CRDB Bank Director of Corporate Affairs and CRDB Bank Foundation Managing Director Ms Tully Esther Mwambapa, speaks at the launch of CRDB Al Barakah Sukuk, the first Sharia-compliant bond at a ceremony held at Johari Rotana Hotel in Dar es Salaam.
Dr Kiwete praised CRDB Bank for its commitment to financial inclusion and ethical investment. “This Sukuk is a revolutionary step in opening Tanzania’s capital markets to all citizens. It allows participation for those previously excluded due to religious beliefs, through a Sharia-compliant investment structure.
This is not only a win for financial inclusion but also a victory for ethical development. I am confident this bond will exceed expectations, as CRDB’s previous landmark issuances have,” said H.E. Dr Jakaya Mrisho Kikwete.
Speaking at the launch, CRDB CEO Abdulmajid Mussa Nsekela said:
“This Sukuk reflects our belief that finance must be inclusive and responsive to the needs of every Tanzanian.
The former President of the United Republic of Tanzania, Dr Jakaya Kikwete, arrives at Johari Rotana Hotel in Dar es Salaam accompanied by the CRDB Bank Managing Director Mr Abdulmajid Nsekela (left), Mufti of Tanzania Sheikh Abubakari Zubeir (second right), Presiding Bishop of the Evangelical Lutheran Church in Tanzania (ELCT) Dr Alex Malasusa (centre) and Dar es Salaam Regional Commissioner Albert Chalamila (right), heading to the launch of CRDB Al Barakah Sukuk, the first Sharia-compliant bond.
It opens doors for wider participation in capital markets without compromising faith or values and serves as a catalyst for mobilizing capital toward ethical, sustainable, and socially beneficial projects.”
Nsekela emphasized that proceeds from the bond would exclusively fund ventures that were ethical and non-harmful to human well-being, in accordance with Sharia principles, including sectors such as healthcare, halal agribusiness, education, and environmentally friendly manufacturing.
“This Sukuk offers competitive returns of 12% per annum for TZS investors and 6% per annum for USD investors, with profit distributions made quarterly. The minimum investment is Sh500,000 or USD1,000, making it accessible to retail investors, Tanzanians in the diaspora, and institutional players alike. The investment window is open for one month and will close on September 12, 2025,” he explained.
With the British International Investment (BII) being the anchor investor, H.E. Marianne Young, British High Commissioner to Tanzania, noted that this financing further strengthens economic ties between the UK and Tanzania.
Coastal music was part of the entertainment at the launching ceremony of CRDB Al Barakah Sukuk, the first Sharia-compliant bond.
Prof. Neema Mori, the Chairperson of CRDB Bank’s Board, and Abdul Van Mohammed, the Chairman of the Bank’s Sharia Advisory Board, stressed on the bond’s significance from a faith-based finance perspective: “This Sukuk bridges faith and finance. It demonstrates CRDB Bank’s deep commitment to Sharia governance and ethical investment,” they said.
In a joint statement, CPA Nicodemus Mkama, the CEO of CMSA, and Peter Nalitolela, the CEO of the Dar es Salaam Stock Exchange (DSE), remarked: “The launch and listing of CRDB Al Barakah Sukuk represent a major step forward in diversifying Tanzania’s capital markets.”
Benefits of the Sukuk
Sukuk, also known as Islamic bonds, have become a popular alternative to traditional equity and debt investments globally. Unlike conventional bonds, where investors act as creditors and receive fixed interest, Sukuk provides ownership in assets or investment projects.
Investing in CRDB Al Barakah Sukuk offers financial security throughout the investment period, attractive returns, and peace of mind knowing the investment aligns with Sharia principles.
Investors, exempted from taxation on coupon payments, can access loans, and may sell their Sukuk on the Dar es Salaam Stock Exchange depending on market demand.
The CRDB Bank Board of Directors Chairperson, Prof Neema Mori speaks at the launch of CRDB Al Barakah Sukuk, the first Sharia-compliant bond, at Johari Rotana Hotel in Dar es Salaam.
Importantly, Al Barakah Sukuk is open to all investors, not just Muslims. Both individuals and organizations—including those not strictly following Sharia-compliant business practices—can participate without discrimination based on religion or ethnicity.
