OeEB and Finnfund, the Finnish development financier, are jointly investing USD 25 million in CRDB Bank Burundi, a subsidiary of Tanzania's largest bank, CRDB Bank Plc. The investment is supported by the European Fund for Sustainable Development Plus (EFSD+) guarantee, enabling financing in one of the world's most vulnerable and underserved markets.
Burundi faces significant development challenges, with a poverty rate of 65% and GDP per capita of USD 255.5 in 2024, the lowest in the world. Financial inclusion remains very low, with a reported 21% financial inclusion rate. This investment aims to address these gaps by expanding access to finance for micro, small and medium-sized enterprises (MSMEs), which face a combined USD 490 million financing gap in Burundi. The loan will support the approximately 4,000 microenterprises and SMEs. At least 30% of the loan proceeds will be directed to women-owned enterprises, qualifying the investment under the 2X Challenge as a gender-smart initiative.
"We are very proud of this investment, which aligns strongly with our strategic priorities. Our partnership with CRDB Bank Burundi S.A and Finnfund advances financial inclusion, enables businesses to expand, creates employment, and drives economic growth. We are especially pleased that 30% of the funds will support women-owned businesses, an area where we and our partners share a deep commitment to making a difference. With the support of the Austrian Ministry of Finance and the EFSD+ guarantee, this investment also marks an important milestone for OeEB as both our first transaction in Burundi and first backed by an EU guarantee", said Sabine Gaber, CEO – Member of OeEB’s Executive Board.
"This transaction marks Finnfund's first investment in Burundi and scores high on development impact, with strong strategic relevance, market development potential, and additionality. It demonstrates how targeted financing can catalyze economic transformation in frontier markets" adds Ulla-Maija Rantapuska, Senior Investment Manager at Finnfund. "With the support of the EFSD+ guarantee, we are able to channel funding to underserved entrepreneurs in Burundi, helping to build a more inclusive and resilient financial sector."
"This milestone is not just a transactional agreement through a credit facility, it is a foundation of a long-lasting partnership. For the bank to deliver our strategic blueprint where we aspire to be the market leader, this requires further collaboration. We look forward to strengthening our partnership to improve livelihoods and deliver sustainable impact: transforming lives by providing solutions that unlock socio-economic value for our communities" commented Mr. Fredrick Luhozyo Siwale, Managing Director of CRDB Bank Burundi.
CRDB Bank Burundi is Burundi’s third largest bank serving 32,500+ customers across all Burundi's 5 provinces through 7 branches, 26 Franchises and 2,000 agents and through digital platforms.