The government of Tanzania has received a dividend of Sh45.8 billion from CRDB Bank, following a substantial increase in the bank’s profitability in 2022.
CRDB Bank’s net profit at the group level rose by 31 percent last year, reaching Sh351.4 billion compared to the previous year’s Sh268.2 billion.
The bank’s shareholders approved a total dividend of Sh117.5 billion during the Annual General Meeting held in Arusha last month, indicating a 25 percent increase over the previous year.
The government, which holds a 21 percent stake in CRDB Bank through the Danida Investment Fund, plans to invest the dividend in approved projects in the upcoming financial year.
Finance and Planning Minister, Dr. Mwigulu Nchemba, commended CRDB Bank for its improved profitability and expressed his satisfaction at receiving the dividend.
He emphasized that the bank’s success is a testament to its effective business strategies. Dr. Nchemba announced that the funds received would be utilized in government projects pending approval of the 2023/24 Financial Year budget.
READ ALSO: Tanzania’s CRDB Bank receives license to operate in DR Congo
The minister expressed optimism for an even larger dividend next year, encouraging other government-owned institutions to follow CRDB Bank’s example. In the first quarter of this year alone, the bank generated a profit after tax of Sh90 billion.
CRDB Bank’s Managing Director, Abdulmajid Nsekela, attributed the growth in shareholders’ investment value to the bank’s successful implementation of its 2018-2022 Medium-Term Business Strategy.
During this period, the bank’s profit surged by an impressive 875 percent, leading to a tax contribution of Sh1.1 trillion to the government.
Nsekela highlighted the bank’s achievements and expressed confidence in its continued growth, foreseeing the potential for an even higher dividend in the future. CRDB Bank’s strong performance serves as an encouraging example for other institutions and sets a positive trajectory for the government’s investment returns.
