GCPF and CRDB Bank Partner to Launch USD 25M Green Finance Initiative in Tanzania

Zurich/ Dae es Salaam, 29 February 2023 – The Global Climate Partnership Fund (GCPF), managed by the Swiss impact asset manager responsAbility Investments AG, is reinforcing its partnership with CRDB Bank, the leading commercial bank in Tanzania, underpinning the bank’s dedication to green finance in sub-Saharan Africa.

A significant challenge in Africa is the lack of reliable electricity, which hinders both economic growth and sustainable development. To address this issue, GCPF, managed by responsAbility, will provide CRDB Bank with a USD 25 million facility aimed at financing climate-positive businesses in Tanzania, specifically, for the corporate and SME sectors. The goal is to enhance energy efficiency by integrating climate-friendly technologies and practices, thus contributing to both economic growth and environmental sustainability in the region.

responsAbility’s Technical Expertise Powers Green Banking in Tanzania

A standout feature of this partnership is the emphasis on technical assistance and close advisory support that responsAbility’s team of in-house Climate Advisory Specialists actively provides. In addition to the financial facility, CRDB Bank will also receive support from GCPF to develop its green lending capacities, as well as bolster its Environmental & Social (E&S) management systems. This not only underlines the bank’s ambition to become a leading green bank in Tanzania but also showcases the depth of support that GCPF offers to its investees.

Leading Green Banking in Tanzania

Adding further depth to this partnership is CRDB Bank’s inherent drive to place itself at the forefront of green banking in Tanzania. The collaboration with GCPF, which specializes in building capacities for green lending, further solidifies the bank’s position in this domain.

Abdulmajid Nsekela, the CEO and Managing Director of CRDB Bank Group expressed his enthusiasm for the partnership with GCPF stating that “this collaboration marks a pivotal moment for CRDB Bank’s commitment to green finance in Tanzania. He further elaborated that the USD 25 million facility provided by GCPF is a significant boost to the bank’s green financing efforts. With GCPF’s support, CRDB Bank aims to increase access to financing for green projects.”

A Vision for Sustainable Business Growth

Ana Akubardia, the Investment Officer, Climate Finance at responsAbility, leading the transaction, said: “Our commitment goes beyond just partnerships. It’s about offering a tailored and practical approach, a hallmark of GCPF. With our comprehensive internal resources, including investments and a specialized climate advisory team, as well as our technical assistance, we’re prepared to support green lending in institutions like CRDB Bank. Our strategies are adapted to local market conditions and needs, reflecting our genuine commitment to sustainable development in emerging economies. This collaboration underlines our dedication to promoting sustainable practices in growing markets.”

About CRDB Bank Group

CRDB Bank Plc is one of the East Africa’s leading banks, serving individuals, micro, small & middle businesses and large corporations with a full range of Retail, Treasury, Insurance, Trade Finance, Syndications, Premier Banking, Agriculture and Microfinance services. Moody`s rated CRDB Bank with a “B1 stable outlook”. In 2019, CRDB Bank became the first Bank in East and Central Africa to receive the United Nations Green Climate Fund (GCF) Accreditation, empowering the bank to finance various green projects.

About the Global Climate Partnership Fund (GCPF)

The Global Climate Partnership Fund is a Luxembourg-based fund managed by the Swiss asset manager responsAbility Investments AG. The Fund is an innovative public-private partnership dedicated to mitigating climate change through a reduction of greenhouse gas emissions in emerging and developing markets. It focuses on financing energy efficiency and renewable energy projects, through local financial institutions or directly. Only projects that generate significant energy savings and pledge to reduce projected greenhouse gas emissions by at least 20% are eligible for funding.

GCPF was established by the German Federal Ministry for the Environment, Nature Conservation and Nuclear Safety (BMU), KfW Entwicklungsbank and the International Finance Corporation (IFC) in 2009 as a public-private partnership. Junior catalytic capital is provided by BMU, the department for Business, Energy and Industrial Strategy (BEIS) of the UK, Denmark’s development cooperation (Danida). Other private and public investors include ASN Bank, Ärzteversorgung Westfalen-Lippe, FMO, OeEB, Sparkasse Bremen, the European Investment Bank (EIB) and Heilsarmee.

About responsAbility Investments AG

responsAbility Investments AG is a leading impact asset manager specializing in private market investments across three investment themes to directly contribute to the United Nations Sustainable Development Goals (SDGs): Financial Inclusion, to finance the growth of Micro & SMEs; Climate Finance, to contribute to a net zero pathway; and Sustainable Food, to sustainably feed an ever-growing population. All responsAbility investment solutions target specific measurable impact alongside market returns.

Since its inception in 2003, responsAbility has deployed over USD 14 billion in impact investments. With over 270 employees collaborating across eight offices, as of 1 October 2023 the company manages USD 4.7 billion in assets across approximately 270 portfolio companies in 72 countries. Since 2022 responsAbility is part of M&G plc, the international savings, and investments business, and contributes to enhancing M&G’s capabilities in impact investing.

    Mar 1, 2024

    GCPF and CRDB Bank Partner to Launch USD 25M Green Finance Initiative in Tanzania

    The Global Climate Partnership Fund (GCPF), managed by responsAbility Investments AG, aims to invest USD 15 million in Golomt Bank, a leading financial institution in Mongolia committed to innovative and inclusive financial services.

    Jan 26, 2024

    The Global Climate Partnership Fund signs USD 15 Million loan with Golomt Bank for financing Sustainable Energy Projects

    The Global Climate Partnership Fund (GCPF), managed by responsAbility Investments AG, aims to invest USD 15 million in Golomt Bank, a leading financial institution in Mongolia committed to innovative and inclusive financial services.

    Dec 21, 2023

    From Vision to Action: Prototyping climate finance value propositions

    Global IME Bank Limited and GCPF signed a USD 25m loan agreement to promote climate positive lending in Nepal.