CRDB disburses 157bn/- in green loans
DAR ES SALAAM: CRDB Bank has disbursed over 157bn/- in green loans to finance projects that safeguard the environment, with beneficiaries drawn from agriculture, energy and recycling sectors.
The Bank’s Chief Commercial Officer, Boma Raballa, said on Tuesday the funds are part of a broader initiative to make affordable capital accessible for entrepreneurs pursuing renewable energy, sustainable agriculture, waste management and clean transport.
“At CRDB Bank, we believe economic development must go hand in hand with environmental protection,” Mr Raballa said.
The programme builds on the Bank’s 2023 Green Bond, which was listed on the Dar es Salaam and Luxembourg stock exchanges and successfully raised 171.82bn/-.
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The loans target sectors that bring tangible benefits to small and medium-sized enterprises (MSMEs).
These include Angaza loans to finance solar energy adoption; clean energy loans to expand the use of LPG, biogas, and efficient electric equipment in schools, hotels and industries. Others are waste collection and recycling loans for recycling ventures; and clean transport loans for eco-friendly transport solutions.
“We recognise the challenges entrepreneurs face, especially access to affordable capital and business management skills,” he said.
Therefore, the lender has designed flexible loan terms, long repayment periods aligned with the realities of their businesses, and capacity-building services through entrepreneurship, financial management, and technology adoption training to support them from the early stages of their growth.
He added that the bank aims to enable more than two million domestic lenders to shift from using firewood and charcoal to renewable energy sources such as solar and improved cookstoves within five years.
IFC Country Manager, Martine Valcin, said, “the rise in production activities has increased demand for different resources, the over-extraction of which harms the environment, making it vital for everyone across the globe to cooperate in protecting it.”
CRDB Bank is the first financial institution in Sub-Saharan Africa accredited by the United Nations Green Climate Fund (UN-GCF), which enabled it to secure 100 million US dollars.
