The European Investment Bank (EIB), the lending bank of the European Union, recently announced that it will issue a loan worth EUR 20 million (USD 24.8 million) to the Cooperative Rural Development Bank (CRDB), a commercial bank in Tanzania, to support small businesses in the agriculture, manufacturing and retail sectors in Tanzania. CRDB is also expected to benefit from EIB’s agreement to provide EUR 5 million (USD 6.2 million) in technical assistance to microfinance institutions (MFIs), local banks and other companies in the East African Community, which is made up of Burundi, Kenya, Rwanda, Tanzania, and Uganda. The technical assistance programmes are expected to provide support for banks and MFIs to broaden their financial services and for retail companies, such as agribusiness exporters, to prepare bankable projects.
As of 2013, CRDB reported total assets of USD 2.1 billion. As of 2013, the total annual lending portfolio of EIB was EUR 71.7 billion (USD 95.8 billion).
By Simon Pfanner, Research Associate
About Cooperative Rural Development Bank (CRDB)
Cooperative Rural Development Bank (CRDB) is a commercial bank in Tanzania that provides banking services to individuals and small, medium-sized and large corporate clients. As of 2013, CRDB reported total assets of USD 2.1 billion. Bank stock is publicly traded on the Dar es Salaam Stock Exchange.
About European Investment Bank (EIB)
The European Investment Bank (EIB) was created in 1958 and serves as the long-term lending bank of the European Union as of 2014. In addition to supporting projects in EU member states, its main priorities include financing investments in likely future member states and EU partner countries, principally in the area of small and medium-sized enterprises. According to its website, “the EIB operates on a non-profit maximizing basis and lends at close to the cost of borrowing.” As of 2013, the total annual lending portfolio of EIB was EUR 71.7 billion (USD 95.8 billion).
Sources and Additional Resources
[1] Daily News, CRDB, European Bank sign 43bn/- Deal
MicroCapital, November 23, 2014, European Investment Bank (EIB) Lends $16.4m to Housing Finance Bank (HFB) to Support Small, Medium-Sized Enterprises (SMEs) in Uganda
MicroCapital, November 18, 2014, European Investment Bank (EIB) to Loan $31m to AccessBank Azerbaijan for On-lending to Small, Medium-Sized Enterprises (SMEs)
MicroCapital, October 15, 2014, African Development Bank (AfDB), Asian Development Bank (ADB), European Bank for Reconstruction and Development (EBRD), European Investment Bank (EIB), Inter-American Development Bank (IDB), World Bank Group (WBG) Issues Joint Statement on Climate Finance
MicroCapital, April 23, 2014, Cooperative Rural Development Bank (CRDB) of Tanzania, International Finance Corporation (IFC) Sign $75m Agreement to Support Small, Medium-Sized Businesses Including Those Owned by Women, Involved in Agriculture
MicroCapital Universe Profile: Cooperative Rural Development Bank (CRDB)
MicroCapital Universe Profile: European Investment Bank (EIB)
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