CRDB Bank aims to boost Tanzania economy to 1 trillion dollars through agriculture
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CRDB Bank is investing in Tanzania's agriculture, fishing, and livestock sectors to help the nation reach a 1 trillion dollar economy by 2050.
Maregesi Shaabani, the Head of the Agribusiness Unit at CRDB Bank, says the institution views agriculture as a high-potential sector rather than a charity case. The bank currently holds 45 percent of the country's agricultural loan market and invested 4.3 trillion Tanzanian shillings this year alone.
These efforts aim to transition rural producers from subsistence farming to commercial investment by providing capital, technology, and insurance. To overcome common hurdles like lack of collateral and climate risks, the bank uses alternative collateral and provides business management training. CRDB Bank also utilizes its subsidiary, CRDB Insurance Company, to protect projects from natural disasters.
They offer a Keyman Insurance Cover to protect investors, ensuring that debts are covered if a primary investor becomes ill or dies without liquidating family assets. The bank also addresses market access through a tripartite agreement where a buyer commits to purchasing all produce and paying the producer directly into a CRDB account. In the fishing sector, the bank works with the Revolutionary Government of Zanzibar to provide modern boats to 50,000 fishers.
In the livestock sector, a program allows farmers to borrow cows and repay the loan using milk delivered to factories.
