Tanzania: Crdb Sees Glittering Future in Burundi After 10 Years

CRDB Bank Burundi is looking ahead to further consolidate its position in Bujumbura as it marks 10 years of operations later this year.

The bank currently has a capital of 19 million US dollars compared to 13 million US dollars when entering Bujumbura market in 2012.

CRDB Burundi Managing Director, Mr Fredrick Siwale said in the last 10 years they have made great strides and climb the market ladder to now becoming the third largest bank in Burundi.

“The board of CRDB made a correct decision since 35 per cent out of profit from this subsidiary is sent home,” MrSiwale told the ‘Daily News’ at the sidelines of Tanganyika Investment and Business Summit.

The MD said there are good sign in the wall showing better performance this year after net profit increase of 196 per cent in quarterly basis.

“CRDB is expanding to regional bank after getting a go ahead to enter DRC, this will elevate our operations in Burundi as well,” he said.

The Burundi subsidiary will also expand this year by opening a branch in Ngozi and next year opens branches at Gitega (the political capital), Makamba and Ruyigi townships.

Also, the bank is banking on its CRDB’s Wakala to take close services to clients. The lender has 600 Wakala and 12 super agents across Burundi.

“We are targeting to raise Wakala numbers to 1000 and double super Wakala number by the end of this year,” MrSiwale said.

CRDB Burundi in this year quarter one net profit jumped up 196 per cent to 5.0billion franc (2.5 million US dollars) in comparison of similar quarter last year.

The loan portfolio increased by 79 per cent to 284billion franc (121 million US dollars) while non-performing loans was 0.45 per cent at the end of March.

“Burudians financial discipline is very high while are excellent loan’s payers, which is the results of low NPLs,” MrSiwale said.

Most of loans goes to tourism, industrial, housing and agricultural sectors and interest is ranging between 10 and 15 per cent.

“Some loans in agriculturial, tourism and housing sectors which are subsidised by the government to suppress interest rate,” MrSiwale said adding, “hence the rate of these loans are below 10 per cent.”

The MD thus challenges Tanzanians to cross the border and invest in Burundi as the economy is fast expanding and need industries, tourism infrastructure, house, transport and the like.

Nevertheless, CRDB Burundi assets grew by 69 per cent to 500 billion franc (280 million US dollars) while deposits increased by 63 per cent to reach 325 billion franc (140 million US dollars).

The assets growth enabled the bank to finance some Burundian government strategic projects including the construction of hydropower dams, and a largest fertiliser factory

In the last 25 years the exports of Tanzania to Burundi have increased at an annual rate of 10.1 per cent, from 6.35million US dollars in 1995 to 69.7 million US dollars in 2020. In 2020, Burundi exported 8.55million US dollars to Tanzania.

Source:

Leave a Reply

Your email address will not be published.