CRDB bank to opens Lubumbashi subsidiary next quarter

06Apr 2022
By Guardian Reporter
The Guardian
CRDB bank to opens Lubumbashi subsidiary next quarter

​​​​​​​CRDB Bank is expected to spread its wing across eastern Africa region, after announcing the launch of operation in DRC’s second capital Lubumbashi.

This is part of the bank’s mission to bridge financing gap in eastern Africa, especially among Tanzania, DRC, and Burundi.

The launch of the bank’s DRC’s operation is scheduled during the next quarter, according to an official statement issued by the bank yesterday.

The idea to come up of the DRC subsidiary is in corresponding with the recent acceptance of the country as the new member of East African Community (EAC).

The Burundian Prime Minister, Mr Alain Guillaume Bunyoni, said was pleased about the opening of DRC subsidiary, but calling for physical financial services outlet on the Burundi-DRC border as well.

"I urge the bank to bring the Congo branches closer to Burundi borders in Uvira and Bukavu so that cross border businesses with two countries can be reliable," Mr Bunyoni said when welcomed CRDB Bank delegation.

The delegation was led by Group Chairman Dr Ally Lay and the Group Managing Director and CEO, Mr Abdulmajid Nsekela and was accompanied by Jilly Mareko, Ambassador of Tanzania to Burundi.

The purpose of the visit was to appreciate the support the bank is getting from the government of Burundi since the lender opened its subsidiary in 2012.

The bank assured Burundians that will continue to partner with governments of Burundi and Tanzania to finance mutual projects undertaken by the two countries especially the Standard Gauge Railway project.

The Premier appreciated the support CRDB is providing to the economy of Burundi through different lending instruments to individuals, corporates and even the government.

He reminded the delegation that the bank was the first to introduce the mobile branch in Burundi and this was really an innovation.

"It is also important to note that the bank through its endless digital transformation program is supporting Burundi and Tanzania trade transactions by giving smooth platform access especially through cross-border transactions and the Port Authority for clearance.

The Chairman, Dr Laay said the bank is deploying digital channels to ensure reliable and affordable services to unbanked population in Burundi.

"This will support the Burundi in its financial inclusions agenda," Mr Laay said adding:

In line with the 10 years of Burundi's National Development Program, the chairman said, the bank looks forward to focus its influence on the development of economic sectors like agriculture, manufacturing, housing, tourism and hospitality which are crucial in the employment of the youth and the inflows of foreign currency into the country.

CRDB Bank CEO Abdulmajid Nsekela said the bank is ranked third largest in terms of lending, after only 10 years in operations and 20per cent of its portfolio is financing Burundian farmers.

"Over the last ten years, the bank has continued to support Burundi economy by providing innovative products and services to corporates, individuals and institutions customers through tailored savings and lending products," Mr Nsekela said.

The bank - which has been in Burundi since 2011 has a total of four branches, three in Bujumbura and one in Ngozi town. This year CRDB Bank plan to open a fifth branch in Gitega District.

Commenting on the financial results of the Burundi subsidiary, CRDB Bank Burundi Managing Director, Fred Siwale said last year they made a profit of 12.8bn/- , 14 percent increase compared to 11.1b/- recorded in 2020.

Loans and Advances increased by 62 percent from 225bn/- to 598bn/- billion and the bank is major taxpayer for the Burundian government.

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