Green Climate Fund’s Director of Private Sector Facility, Ayaan Adam said this week that CRDB’s strength also spills-over the country’s border to Burundi where it has a goof performing subsidiary.
“CRDB Bank is a very strong bank because it has a wide reach and presence, extending to two countries and will hopefully go beyond,” Adam said in a statement following the official accreditation during the week in South Korean city of Songdo.
“This means the bank is aware of the realities of what is happening in the country and beyond hence being a better partner for the GCF,” Adam added.
The Dar es Salaam based lender becomes only the third commercial bank in Africa to obtain the accreditation and the first in East and Central Africa. Other GCF accredited African banks are Ecobank Ghana and Attijariwafa Bank of Morocco.
The UN’s GCF accredited entities carryout a range of activities that usually include the development of funding proposals and the management and monitoring of projects and programmes relating to environmentally friendly projects. CRDB becomes the financial intermediary for the implementation of green financing in the country.
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 ascertainthe Bank’s preparedness in managing climate change programmes.
Commenting on the success, CRDB Group’s Managing Director, Abdulmajid Nsekela said 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 on the country’s development,” said Nsekela.
“We want to take an active role in supporting development programs in our country especially government’s initiatives in energy, transport and infrastructure, industrialisation, health and wellness, food security, safe cities and the environment,” Nsekela added.
He said the bank is 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 of up to U$250 million per single project funding proposal. This means that CRDB will be able to finance multiple large scale projects with high impact to the social and economic development of Tanzania,” he noted.
The Group Managing Director expressed his hope that implementation of sustainable initiatives will be an important step in the bank’s corporate social investment approach and will go a long way in strengthening its position as a leading innovative bank in the region.