Speech by the Danish Ambassador at CRDB’s 30th Annual General Meeting

Habari za Asubuhi Mabibi na Mabwana! [Good morning, ladies and gentlemen!].

Let me start with a fun fact: In 1994, when Denmark invested in CRDB, I was still in university. The most downloaded app in the world was… nothing: because there were no apps! The internet was barely a toddler. We had just started working with personal computers (PCs) and experimenting with the “www.” I didn’t have a mobile phone: actually, nobody was thinking about smartphones or apps yet. And “social media”? That was called talking to your neighbour.

And yet here we are, 30 years later: past the dotcom bubble, the global financial crisis, a pandemic — and celebrating not only a modern, high-performing bank, but also a remarkable story of transformation and partnership.

Denmark, through the Danida Investment Fund, has proudly been part of this journey since 1994. This support was not random. It was in response to a heartfelt request from the Government of Tanzania to the Government of Denmark at a time when CRDB was facing serious turbulence—following a series of challenges in the late 1980s that nearly brought the bank to its knees.

In this regard, the Government of Tanzania requested Denmark to support a restructuring of CRDB. In 1994, Denmark decided to contribute to the restructuring, which, among other measures, entailed a privatization of CRDB and amortization of bad loans. Danish support for the restructuring amounted to DKK 45 million that is 7 mio USD, of which DKK 20 million was placed in the Danida Investment Fund (DIF), with the two states—Tanzania and Denmark—as founders. The Fund was established with the sole purpose of injecting share capital and loan capital into CRDB.

With DKK 20 million in CRDB shares, DIF obtained 30% of the share capital (now 20%). It was a Danish requirement that DIF could not own more than 30% of the shares in the new limited company, and that the remaining share capital should be provided by the private sector. Denmark was the only donor to support the restructuring.

The restructuring also entailed hiring and paying the salary for the Deputy Managing Director (until 2008), appointing a senior and vastly experienced banking professional to sit on the Bank’s Board of Directors (as one of the two DIF representatives), and launching a capacity-building program for staff, which continued into the early 2000s.

Together with visionary Tanzanian leadership and a strong sense of purpose, this effort laid the foundation for a sustainable and resilient institution.

The result? CRDB is now one of Tanzania’s leading commercial banks, with operations expanding into Burundi and the Democratic Republic of Congo.

It’s no exaggeration to say that CRDB is a Tanzanian success story—and Denmark is proud to have played a small but meaningful part in that.

As with any institutional investor, Danida Investment Fund not only has an interest but also a responsibility to help ensure that the bank remains resilient against various shocks: financial, operational, and strategic. This includes promoting strong corporate governance, maintaining sound capital adequacy ratios, ensuring adherence to best banking practices, maintaining focus on liquidity and low stock of None-Performing Loans, managing risks effectively, upholding transparency and accountability, supporting digital innovation, and contributing to long-term value creation.

These are not only shareholder concerns: — they are fundamental to the sustainability and success of any financial institution.

But the story doesn’t stop with banking.

Since 2017, the dividends received by the Danida Investment Fund from CRDB Bank have been redirected to support Tanzania’s health sector through the Health Basket Fund. In other words: profits from a restructured Tanzanian bank, built in partnership with Denmark, are now helping Tanzanian mothers deliver safely, children to get vaccinated, and communities receiving quality care.

That is the kind of circular impact we strive for: development that reinforces itself, and partnerships that pay dividends: literally and socially.