CRDB Bank lends Sh73 billion through Islamic banking

By Alex Nelson Malanga

Business journalist

Summary

·         Tens of thousands of clients had received loans under the CRDB Al Barakah Banking as of last year following the arrangement’s launch the previous tear, according to the bank’s chief operations officer, Mr Bruce Mwile

Dar es Salaam. CRDB Bank has availed Sh73 billion in lending to its various clients under Islamic banking principles in a span of one year as the lender extends its services to cover different groups within the economy.

Launched in 2021, at least 30,000 clients had received the financing under the CRDB Al Barakah Banking as of last year, the bank’s chief operations officer, Mr Bruce Mwile said at the weekend.

Mr Mwile revealed the figures during an Iftar in Zanzibar at the weekend, a statement from the bank said yesterday.

Over 500 CRDB Bank customers attended the event.

Beneficiaries of the loans were different groups of customers, including individuals and businesses.

The CRDB Al Barakah Banking carries no interest. It is conducted through the ‘Murabaha’ arrangement.

This arrangement is a contract wherein the bank, upon request by the customer, purchases the asset from a third-party supplier/vendor and resells it to the customer either against immediate payment or on a deferred payment basis.

The Minister of State in the Zanzibar President’s Office (Economy and Investment) Mudrick Soraga said within one year, CRDB Al Barakah has bolstered the increase in financial inclusion in Zanzibar.