Bujumbura, Burundi, November 3, 2022 — IFC and CRDB Bank Burundi S.A. have partnered to expand access to finance to smaller businesses, especially micro and small enterprises in the agribusiness sector, supporting economic growth and job creation in the country.
Under the partnership, IFC has loaned $5 million to CRDB Bank Burundi S.A. for on-lending to smaller businesses, many of which struggle to access financing for growth, especially in the wake of the COVID-19 pandemic. The World Bank estimates the small and medium enterprise (SME) finance gap in Burundi stands at roughly $491 million.
In addition to the financing, IFC will provide CRDB Bank Burundi S.A. with advisory support to help the bank better serve smaller businesses, including with tailored lending products for this market segment.
"SMEs face tremendous challenges accessing finance in Burundi. Therefore, IFC's financing will help us enhance the availability of long-term finance for households and MSMEs, boosting financial inclusion," said Fredrick Siwale, Managing Director, CRDB Bank Burundi S.A.
"Our support to CRDB Bank Burundi S.A. marks IFC's first investment in Burundi since 2011, which is increasingly turning to the private sector for growth and development," said Jumoke Jagun-Dokunmu, IFC Regional Director for Eastern Africa. "SMEs are an underserved yet critical segment of the local economy and our investment and advisory support will help boost their growth."
IFC's financing of CRDB Bank Burundi S.A. is also supported by the International Development Association's (IDA) Private Sector Window Blended Finance Facility. The facility provides co-investment funding to a select group of countries to help catalyze private sector investment.
About IFC
IFC—a member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2022, IFC committed a record $32.8 billion to private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity as economies grapple with the impacts of global compounding crises. For more information, visit www.ifc.org.
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About CRDB Bank Plc
CRDB Bank Burundi S.A. was incorporated in Burundi in the year 2012 under the Company's Act and is domiciled in Burundi. It offers a comprehensive range of Corporate, Retail, Business, Treasury and other various banking services to the general public. CRDB Bank Burundi S.A. is a wholly owned subsidiary of CRDB Bank plc by 100%. CRDB Bank plc is a private commercial bank incorporated in Tanzania and is listed in the Dar Es Salaam Stock Exchange. For further information: https://crdbbank.co.bi/
About the IDA Private Sector Window
As part of the 19th replenishment of the International Development Association (IDA), the World Bank Group is continuing the IDA Private Sector Window (PSW) created under IDA18 to catalyze private sector investment in the poorest and most fragile countries. Recognizing the key role of the private sector in achieving IDA's objectives and the World Bank Group's twin goals, the window provides a source of co-investment funding and guarantees to de-risk private investments supported by IFC and the Multilateral Investment Guarantee Agency (MIGA). The IDA PSW is an option when there is no commercial solution and the World Bank Group's other tools and approaches are insufficient. For more information, visit: http://ida.worldbank.org/psw
