CRDB Bank Plc has officially launched a new Islamic finance product, the Al Barakah Sukuk, in a move set to boost ethical investments and promote financial inclusion in Tanzania and across East Africa. The Sukuk, which is fully compliant with Sharia principles, is designed to attract both local and foreign investors who want to put their money into projects that meet ethical, sustainable, and religious guidelines.
The bank is targeting to raise TZS 30 billion (about USD 11.7 million) and USD 5 million through the bond. However, it also includes a green-shoe option that could push the total to TZS 40 billion and USD 7 million if investor demand exceeds expectations. According to CRDB Bank, proceeds from this Islamic bond will be invested in sectors such as healthcare, halal agribusiness, education, and eco-friendly manufacturing industries. These are seen as key growth areas that not only yield returns but also have a positive social impact.
The Al Barakah Sukuk forms part of CRDB Bank’s five-year USD 300 million Medium-Term Note Programme, which was approved by the Capital Markets and Securities Authority (CMSA). This programme has already seen the issuance of other successful bonds such as the Kijani Bond and the Samia Infrastructure Bond, both of which were oversubscribed by investors.
Investors who subscribe to the Al Barakah Sukuk will receive quarterly profit distributions. Tanzanian shilling investments will earn 12% per annum, while US dollar investments will earn 6% per annum. The product is open to a wide range of investors, including retail customers, institutional investors, the Tanzanian diaspora, and foreign participants. The minimum subscription has been set at TZS 500,000 for local currency investments or USD 1,000 for dollar-based investments. Subscriptions close on September 12, 2025, after which the Sukuk will be listed on the Dar es Salaam Stock Exchange (DSE), giving investors the option to trade their holdings.
The launch attracted major backing, with British International Investment (BII) coming on board as the anchor investor with a USD 15 million commitment. This strong support from a reputable global development finance institution is seen as a vote of confidence in both the product and Tanzania’s financial markets.
At the event, retired President Jakaya Mrisho Kikwete commended the initiative, noting that it opens doors for people who have previously avoided traditional interest-based financial products due to their religious beliefs. He described it as a significant milestone in making Tanzania’s financial sector more inclusive.
CRDB Group CEO and Managing Director, Abdulmajid Nsekela, explained that the Sukuk is part of the bank’s broader strategy to offer innovative products that align with ethical finance principles. He stressed that the funds raised will be channelled into impactful projects that support sustainable economic growth, job creation, and environmental protection.
The Chairman of CRDB’s Sharia Advisory Board, Abdul Van Mohamed, assured investors that the board will continue to provide oversight to ensure the Sukuk remains in line with Islamic finance principles while encouraging innovation in the sector.
Deputy Governor for Financial Stability and Sector Supervision at the Bank of Tanzania, Sauda Msemo, used the occasion to highlight the rapid growth of Sharia-compliant banking in Tanzania. She revealed that the number of Sharia-compliant accounts in the country has grown from 223,081 in June 2020 to 809,105 in June 2025. Deposits have also risen sharply from TZS 440 billion to TZS 1.4 trillion over the same period. She attributed this growth to increased awareness, supportive regulation, and the introduction of diverse Islamic finance products.
Msemo also noted that the central bank has recently implemented several regulatory reforms to strengthen the sector, including amendments to key banking laws and the finalisation of the Non-Interest Banking Business Regulations, which are expected to take effect in the coming months. These changes are expected to make it easier for more players to enter the market and for customers to have greater access to Sharia-compliant banking services.
The CRDB Al Barakah Sukuk is expected to attract both Muslim and non-Muslim investors who are interested in ethical and impact-driven investments. As the subscription period continues, market analysts are already predicting high interest due to the attractive returns, strong backing from international partners, and the growing appeal of sustainable finance in the region.
By tapping into Islamic finance, CRDB Bank is positioning itself as a pioneer in creating investment opportunities that combine profitability with positive social impact. This move also reflects the growing trend across Africa where financial institutions are developing innovative products to meet diverse customer needs while supporting economic growth in an ethical and inclusive manner.
