The African Development Bank (AfDB) has commitment a Ksh.4bn, 10-year Line of Credit to the East African Development bank (EADB) to support regional projects.
This pledge will be directed towards support of regional infrastructure, manufacturing, agribusiness and education sectors with a bid to increase economic and government revenue growth in the member countries.
Speaking at the signing ceremony, AfDB Regional Director for the East Africa Resource Center (EARC), Mr. Gabriel Negatu said that the bank was pleased to partner with EADB in its effort to close financial gaps in the region facilitating growth across sectors.
‘’This transaction aligns with several of AfDB’s policies and strategies including the Industrial Sector Policy Guidelines (1986), the Financial Sector Policy (2003), the Private Sector Operations Strategy, (2013) as well as the Eastern Africa Regional Integration Strategy (2010).’’ He added. “This development is also in line with AfDB’s Ten Year Strategy which aims among other 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.
Since its inception, The East African Development Bank project pipeline has funded 49 projects worth Ksh.36.6b (USD361 million) with a track record of increasing profits gradually over the past 5 years.
Mrs. Vivienne Yeda Apopo, Director General, East African Development Bank, pointed out that the received 8th Line of Credit from AfDB adds ready resources for the bank. Additionally, it contributes to increased financial strength, which has continuously led the bank to be recognized as Africa’s best performing development finance institution with a Ba3 rating.
“We however would still need to tap into debt and equity sources from Development Finance Institutions (DFIs) and commercial finance markets to meet the deficit fund remaining.” Mrs. Vivienne added.
The Line of Credit will also AfDB’s recent equity investment of Ksh.2.4bn (US$24 million), in addition to other ongoing interventions.