Why CRDB Bank SA became the most profitable lender in Burundi

CRDB Bank’s Burundi subsidiary has finally become the most profitable lender in that country, thanks to a number of factors, including the innovativeness of its management and the support it gets from the government, its parent company and various other partners.

Speaking during the 29th Annual General Meeting (AGM) of CRDB Bank Plc, the parent company’s Chief Finance Officer (CFO), Mr Fredrick Nshekanabo, said the Burundi subsidiary has grown to become the most profitable lender in that country, with assets reaching Sh985 billion and a total of Sh538 billion in customers’ deposits.

Burundi contributed Sh30.2 billion to CRDB Bank Group’s net profit for 2023.

Speaking to a section of the media on the sidelines of the AGM, the Managing Director for CRDB Bank Burundi SA, Mr Fredrick Siwale (pictured), said during the first quarter of the current calendar year, the subsidiary recorded a net profit of 9.3 billion Burundian Francs (about Sh8.4 billion).

“With such a performance, the CRDB Bank Burundi SA emerged as the most profitable lender in that country,” said Mr Siwale, attributing the achievement to an innovative operational approach.

Through innovation, the bank, which has operated in Burundi for the past 11 years, has managed to raise the number of its banking agents to 1,500 across Burundi from only 630 last year.

“This has helped us to raise the number of customers across all segments [large, medium and small-scale ones]…,” said Mr Siwale.

Over the years, CRDB Bank Burundi SA has also mastered the art of working closely with various players across agriculture, transport, mining and tourism, among others.

“Businesses across these sectors get all the relevant support from us and this is why we have been doing quite well,” he said.

With the full support of its parent company and the government and regulatory agencies in Burundi, coupled with cordial social, political and economic ties between Tanzania, CRDB Bank Burundi SA has made some strides in supporting cross-border investments between the two countries.

That is how the bank, in partnership with CRBD Bank Plc, was compelled to finance a fertiliser factory in Dodoma, Tanzania, which has been built by a Burundian investor.

“We also finance a number of public sector projects in Burundi,” Mr Siwale said, adding that plans were underway to ensure that the lender was playing a key role in supporting regional businesses.

During the past 11 years, the CRDB Bank Burundi SA has disbursed loans worth a total of 740 billion Burundi Francs (about Sh673.4 billion) and accumulated 780 billion Burundi Francs (about Sh709.8 billion) in customers’ deposits.

The asset size has grown to 1.3 trillion Burundi Francs (equivalent to Sh1.18 trillion).

Looking forward, Mr Siwale sees the lender as becoming an increasingly important player in financing various activities that drive economic growth in Burundi and the region at large.