The African Development Bank (AfDB) has extended Sh4 billion to the East African Development Bank (EADB) for onward lending to regional projects.
AfDB regional director for the East Africa Resource Center (EARC), Mr Gabriel Negatu said the bank was pleased to partner with EADB in its effort to close financial gaps in the region and facilitate growth across sectors.
“This facility is 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,” Mr Negatu said.
Since its inception, EADB has helped fund 49 projects worth Sh36.6 billion ($361 million) with a track record of increasing profits gradually over the past 5 years.
Director General EADB Vivienne Yeda Apopo, said that the 8th line of credit from AfDB adds ready resources for the bank.
She said it will contribute 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,” she said.
The line of credit will bring the total equity investment in the bank by AfDB’s to a total of Sh2.4 billion ($24 million), in addition to other ongoing interventions.