Zanzibar schools to get major facelift with CRDB’s Sh240bn loan
Zanzibar. Zanzibar is set to construct 23 double-storey modern schools across Unguja and Pemba following the signing of a €80 million (about Sh240 billion) loan agreement between CRDB Bank and the Zanzibar government.
The financing deal was signed on Wednesday, May 21, 2025 by CRDB Bank CEO, Mr Abdulmajid Nsekela, and the Permanent Secretary in the President’s Office (Finance and Planning – Zanzibar), Dr Juma Malik Akil.
The event was witnessed by Zanzibar President, Dr Hussein Ali Mwinyi, at State House, Mnazi Mmoja.
The new schools will feature modern classrooms, laboratories, libraries, sanitation facilities, administrative blocks, recreational spaces, and landscaped grounds.
President Mwinyi hailed the agreement as a significant milestone in addressing the shortage of learning spaces and improving the quality of education infrastructure on the islands.
“The €79.96 million loan will enable us to build 23 double-storey schools in both Pemba and Unguja. These projects will help ease classroom congestion and ensure that our children learn in a safe, age-appropriate, and conducive environment,” said President Mwinyi.
He emphasised the strategic importance of investing in education, noting that the country’s future depends on well-trained professionals in various fields.
“To build a better future, we need quality education. This loan has come at the right time. I commend the Ministry of Education for making this happen. In every corner of Zanzibar, from towns to places like Tumbatu, citizens have been requesting schools with low-rise buildings. That request is now being answered,” he added.
The funding arrangement involves CRDB Bank working in partnership with Deutsche Bank of Spain.
CRDB will contribute €10.65 million (about 15 percent) from its own capital, while Deutsche Bank will provide the remaining €69.31 million (85 percent).
According to Mr Nsekela, the final procedures to meet preliminary loan conditions are underway, and implementation of the school construction projects is expected to begin soon.
“We are in the final stages of satisfying pre-disbursement conditions and anticipate that project execution will commence before the end of next month,” he said.
He also lauded the Zanzibar government for fostering an enabling environment for investment and economic growth.
Mr Nsekela cited the successful issuance of a Sharia-compliant Sukuk bond earlier this year, which raised Sh381 billion to finance infrastructure projects.
CRDB Bank has played a key role in supporting development initiatives in Zanzibar, having already financed projects worth Sh130 billion.
With the latest loan, the bank’s total financing portfolio for government-supervised projects in the Isles now stands at Sh375 billion.
Crédito: Link de origem