• EDFI Management Company has provided an $8.25 million partial guarantee for DEG’s $25 million long-term loan to Tanzania’s CRDB Bank.
• The facility will expand lending to micro, small and medium-sized enterprises (MSMEs), especially women-led and rural businesses.
• The operation forms part of the EU’s Global Gateway strategy to mobilize €300 billion for sustainable and inclusive investments by 2027.

Impact asset manager EDFI Management Company has issued a $8.25 million partial guarantee to support a $25 million long-term loan provided by the German development finance institution DEG to CRDB Bank, one of Tanzania’s largest commercial lenders.

The facility aims to expand CRDB Bank’s credit offering to micro, small and medium-sized enterprises (MSMEs), with a particular focus on women-led firms and rural entrepreneurs who often face limited access to formal financing.

According to the World Bank, nearly 81% of Tanzanian MSMEs lack access to finance, despite their critical role in the national economy. The new funding is designed to ease this credit gap and stimulate growth in productive sectors.

The partial guarantee will mitigate investment risks and help attract more private capital to Tanzania’s dynamic sectors, notably agriculture, which accounts for 27% of GDP and employs over 75% of the workforce.

The selection of CRDB Bank reflects a strategic approach to partner with institutions deeply rooted in Tanzania’s financial ecosystem.

Data from the Food and Agriculture Organization (FAO) published in February 2025 shows that CRDB Bank provides 60% of all agricultural loans in the country, confirming its leading position in rural finance and agribusiness lending.

This operation forms part of the European Union’s Global Gateway initiative, which seeks to mobilize up to €300 billion between 2021 and 2027 to promote sustainable infrastructure and inclusive growth worldwide.

The initiative strengthens cooperation between European and African financial institutions to address structural financing gaps and support private sector development across emerging markets.

This article was initially published in French by SG

Adapted in English by Ange Jason Quenum