CRDB, a Tanzanian bank, closed its second year of activity in the Democratic Republic of Congo (DRC) on a negative note. According to the lender’s annual report, its Congolese subsidiary recorded a loss of 6.6 billion Tanzanian shillings or $2.5 million at the average yearly rate. Compared to 2023, the figure is 57% higher. Despite this, CRDB’s management is confident about the future.

According to the report, a sharp rise in operating expenses drove the losses. The expenses could not be offset by operating revenues, which jumped from $0.5 million to $5 million between 2023 and 2024.

The Congolese subsidiary's expansion strategy can explain this situation, as it seeks to gain a solid foothold in the local market. In Lubumbashi, the bank’s head office, a new branch was opened, and the workforce across the country doubled from 26 to 59 employees in one year.

Despite the losses, the bank's financial indicators are promising. The intermediation margin jumped from $643,000 to $2.9 million, mainly thanks to Congolese government bonds. Customer deposits rose to $8.4 million from $875,000 a year earlier, while total assets now stand at $70.2 million compared with $46 million in 2023.

"Although challenges remain, our long-term outlook for the Congolese market remains positive, underpinned by the country's economic potential and CRDB's commitment to strengthening its operational base," says group CEO Abdulmajid M. Nsekela.

CRDB Bank, one of Tanzania's leading banks, obtained authorization to operate in the DRC in May 2023. The bank made the strategic choice of Lubumbashi, in the Haut-Katanga region, as its headquarters, due to its geographical proximity and cross-border trade with Tanzania.

The bank is 55% owned by its parent company in Tanzania, while the Norwegian investment fund Norfund and the Danish IFU each hold a 22.5% stake.

This article was initially published in French by Timothée Manoke (intern)

Edited in English by Ola Schad Akinocho