GuarantCo completes its largest transaction to date, a USD 100 million portfolio guarantee for CRDB Bank in Tanzania

  • Date written
  • May, 2026

GuarantCo, part of the Private Infrastructure Development Group (PIDG), is providing a USD 100 million (equivalent in Tanzanian Shillings) portfolio guarantee to CRDB Bank Plc, one of Tanzania’s leading commercial banks. This marks GuarantCo’s largest transaction since its inception in 2005.

GuarantCo completes its largest transaction to date, a USD 100 million portfolio guarantee for CRDB Bank in Tanzania

This transaction is a five-year extension of the existing CRDB Bank facility guaranteed by GuarantCo in 2020. This guarantee will support the further growth of a loan portfolio of sustainable infrastructure projects, providing capital relief to support new eligible projects with over a third to be within the agriculture sector.

By doing so, it will help mobilise private sector capital in the market and support the diversification of Tanzania’s growing economy. Tanzania’s real GDP was projected to have grown to 6 per cent[1] in 2025 from 5.6 per cent in 2024, supported by ongoing reforms, increased investment and a stable inflation environment.

This deal is aligned to the United Nations’ Sustainable Development Goals 8 (decent work and economic growth) and 9 (industry, innovation and infrastructure).

As GuarantCo’s largest transaction to date, it represents a new high-water mark in terms of scale, signalling GuarantCo’s ability to execute significantly larger commitments while maintaining strong risk discipline. It also demonstrates GuarantCo’s growing institutional capacity to mobilise substantial volumes of private capital through established partnerships.

Chinmay Naralkar, Deputy Chief Executive Officer, GuarantCo said:

“This marks GuarantCo’s and indeed PIDG’s largest ever transaction and an important milestone in the portfolio scaling strategy, reinforcing our role as a partner capable of delivering innovative credit enhancement solutions that drive impact. The transaction allows GuarantCo to expand its portfolio alongside a trusted partner, CRDB Bank, supported by our risk guidelines and underpinned by a strong performance track record. Importantly, the transaction sets a benchmark for future engagements, reinforcing PIDG’s credibility as a scalable partner and expanding the range of opportunities we can pursue in the future.” 

Abdulmajid Nsekela, CRDB Bank Group CEO, said:

“This expanded partnership with GuarantCo reflects CRDB Bank’s long-term commitment to financing sustainable infrastructure and productive sectors that drive Tanzania’s economic transformation. The USD 100 million guarantee significantly strengthens our capacity to support large-scale and impactful projects, particularly in agriculture, energy and industrial development. Through this partnership, we are accelerating access to long-term, affordable local currency financing, enabling businesses to grow, create jobs and contribute meaningfully to national development priorities.

“At CRDB Bank, we believe that strategic partnerships are essential to unlocking private sector capital and delivering inclusive growth. This transaction builds on our successful collaboration with GuarantCo and positions us to play an even stronger role in supporting Tanzania’s infrastructure agenda and broader economic diversification.”

H.E. Marianne Young, British High Commissioner to Tanzania:

“The expansion of the GuarantCo–CRDB guarantee to USD 100 million is a powerful example of how innovative, UK‑supported blended‑finance instruments can unlock private capital for development. As a founding and long‑standing donor to PIDG, the UK is proud to support partnerships that reduce risk, strengthen local financial markets and enable Tanzanian institutions to invest confidently in the infrastructure that underpins economic growth, jobs and opportunity. This extended guarantee demonstrates our commitment to mobilising private finance for sustainable development.”

[1] S&P Global.

NOTES TO EDITORS

About GuarantCo

GuarantCo mobilises private sector local currency investment for infrastructure projects and supports the development of financial markets in lower income countries across Africa and Asia. GuarantCo is part of the Private Infrastructure Development Group (PIDG) and is funded by the governments of the United Kingdom, Switzerland, Australia and Sweden, through the PIDG Trust, the Netherlands, through FMO and the PIDG Trust, France through a stand-by facility and Global Affairs Canada through a repayable facility. GuarantCo is rated AA- by Fitch and A1 by Moody’s. Since 2005, GuarantCo has enabled USD 7.1 billion of total investment and USD 6.8 billion of private sector investment, giving 44.8 million people access to infrastructure and creating around 248,000 jobs. www.guarantco.com

About PIDG

The Private Infrastructure Development Group (PIDG) is an innovative infrastructure project developer and investor which mobilises private investment in sustainable and inclusive infrastructure in sub-Saharan Africa and south and southeast Asia. PIDG investments promote socio-economic development within a just transition to net zero emissions, combat poverty and contribute to the Sustainable Development Goals (SDGs). PIDG delivers its ambition in line with its values of pioneering, partnership, safety, inclusivity, and urgency.

 

PIDG offers technical assistance for upstream, early-stage activities and concessional capital; invests in early-stage project development and project and corporate equity through its project development solution, InfraCo; its debt solution EAAIF (the Emerging Africa & Asia Infrastructure Fund) is one of the first and more successful blended debt funds in low-income markets; and its guarantees solution, GuarantCo, provides credit enhancement and local currency solutions to de-risk projects. PIDG also supports a growing portfolio of local credit enhancement facilities, which unlock domestic institutional capital for infrastructure financing.

 

Since 2002, PIDG has supported 258 infrastructure projects to financial close, which provided an estimated 232 million people with access to new or improved infrastructure. PIDG is funded by the governments of the United Kingdom, the Netherlands, Switzerland, Australia and Sweden, and Global Affairs Canada. www.pidg.org

About CRDB Bank Group

CRDB Bank is one of East Africa’s leading and most trusted financial services providers, serving individuals, micro, small, and medium enterprises, as well as large corporations. The Bank offers a comprehensive suite of services including Retail Banking, Treasury, Insurance, Trade Finance, Syndications, Premier Banking, Agriculture Finance, and Microfinance solutions.

The Bank has earned a strong reputation for stability and innovation. It is the first bank in Tanzania to be ranked among the top ten most stable and safest African banks by Moody’s Investors Service, with a “B1 stable outlook,” the highest rating ever achieved by a bank or financial institution in Sub-Saharan Africa. The Bank is also accredited by the United Nations Green Climate Fund (GCF), underscoring its leadership in sustainable and climate-aligned finance.

With a growing international footprint, CRDB Bank serves more than 6 million customers across Tanzania, Burundi, the Democratic Republic of Congo, and Dubai, UAE. Its wide-reaching network includes over 260 branches, 21 mobile branches, more than 30,000 Agents (CRDB Wakala), 685 ATMs, 5,000 merchants, a state-of-the-art 24/7 Call Centre, and robust digital banking platforms. This unmatched convenience ensures that CRDB Bank remains close to its customers while driving financial inclusion and economic empowerment across the region. Learn more at www.crdbbank.co.tz