In a move that is expected to spur growth in the East African Region, the African Development Bank (AfDB) has extended Sh4 billion ($39 million) to the East African Development Bank (EADB).
AfDB Regional Director for the East Africa Resource Center (EARC), Mr Gabriel Negatu, was quoted by the Daily Nation as having remarked that the bank was delighted to partner with EADB in its effort to bridge financial gaps experienced in the region, consequently facilitating growth across the various sectors.
In the recent past, due to increased requests for funds, EADB said it had experienced challenges to handle the demands given its current balance sheet and, therefore, approached AfDB to improve its liquidity.
Commenting on the fund, Mr Negatu said: “this facility is in line with AfDB’s 10-year strategy, which aims, among others things, to deepen financial markets and promote inclusive growth. EADB plays a catalytic role in enhancing growth within the EAC region, supporting various programs within the region.”
The East African Development Bank (EADB) was established in 1967 with an aim to provide financial and other support to its member countries, which currently are Kenya, Tanzania, Rwanda and Uganda. It was re-established under its own charter in 1980 after the break-up of the East African Co-operation in 1977.
Although the EADB’s loan portfolio is spread widely, more than 60% of its lending is to projects in health and education, hotels and tourism, construction and building, electricity and water, and agriculture, all of which are central to the current and future prosperity of the region and its people.
So far, EADB has helped fund 49 projects worth Sh36.6 billion ($361 million) with a track record of increasing profits gradually over the past five years.
According to EADB director-general Vivant Yeda Apopo, the 8th line of credit from AfDB would provide ready resources for the bank.
This she said would contribute to increased financial strength, which has continuously led the bank to be recognized as Africa’s best performing development finance institution.
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