Finnfund and OeEB invest in CRDB Bank Burundi to support financial inclusion

Finnfund, the Finnish development financier and impact investor, and OeEB, the Development Bank of Austria, are jointly investing 25 million US dollars 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 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 490 million US dollar financing gap in Burundi. The loan will support 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.

“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” said 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.”

“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”, adds Sabine Gaber, CEO, Member of OeEB’s Executive Board.

“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 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.

More information:
Ulla-Maija Rantapuska, Senior Investment Manager, Finnfund
tel +358 41 536 5631, ulla-maija.rantapuska@finnfund.fi

Media contact:
Valpuri Mäkinen, Senior Communications and Marketing Manager, Finnfund
tel +358 50 384 2105, valpuri.makinen@finnfund.fi

This investment is made with support from the European Union and the European Fund for Sustainable Development Plus (EFSD+), one of the financing tools of Global Gateway, promoting sustainable investments in the EU’s partner countries. Finnfund has utilised an EFSD+ guarantee under the MSME Platform program, which supports investments into micro, small and medium-sized enterprises (MSMEs) with a particular focus on businesses run by women, young people and migrants, active in Least Developed Countries, low income countries, and countries in a fragile or vulnerable situation. MSME Platform is a joint initiative managed by EDFI Management Company SA.