SONGDO, South Korea Wednesday, Nov 13, 2019 - Tanzania’s largest commercial bank, CRDB Bank Plc, has today been accredited by the United Nations Green Climate Fund as the financial intermediary for the implementation of green financing in the United Republic of Tanzania.
The 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.
Group CEO & Manging Director Abdulmajid Nsekela says the endorsement marks an important milestone in the Bank’s history and that of the Country.
“We are proud of this achievement and excited because it gives us a unique opportunity to make a huge impact in Tanzania,” quips Nsekela.
GCF Director of Private Sector Facility, Ayaan Adam says CRDB Bank’s accreditation is highly merited, owing to the Bank’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 (and will hopefully go beyond). This means the bank is aware of the realities of what is happening in the country, ” says Adam.
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. Multiple projects can be funded simultaneously.
“We want to take an active role in supporting development programs 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,” Nsekela explains.
“We are ready to work 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 USD 250 million per single project funding proposal. This means that CRDB Bank will be able to finance multiple large scale projects with high impact to the social and economic development of Tanzania,” the CEO says.
Nsekela further says access to the Fund will empower the Bank to support the government of Tanzania sustainable development initiatives in the areas of renewable energy, mass mobility through rapid bus transit systems and railways, provide modern and sustainable housing estates in cities and afforestation among others.
The Chief Executive is upbeat that the implementation of sustainable initiatives will be an important step for the Bank’s Corprate Social Investment (CSI) approach and will go a long way in strengthening its position as a leading innovative bank in the region.
CRDB Bank appreciates the continued support gained from the government of Tanzania and particularly nominating CRDB Bank for the accreditation and cooperation extended to the Bank by GCF to ensure that we sail smoothly to a successful accredition. The Bank will work in partnership with GCF and the government for the social and economic development of Tanzanians.
very good move.projecs sre not meant to be finsnancially viable butalso have a social impact on the society.most banks in africa are not in the long term lending sector and they are not in the industrial sector.Therefore this is a move in the toght direction
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