EADB ready to finance viable development projects and businesses 

The East African Development Bank (EADB) Actying Director General Mr. Benard Mono has reaffirmed the Bank’s commitment to finance viable development projects and businesses across the East region building on its successes in the last five years. 

“We have enough financing for every viable project; whether it’s agriculture, manufacturing, and  we also deal directly with governments when it comes to infrastructure projects. We financed the Standard Gauge Railway [SGR] in Tanzania, and we’re looking at participating in financing the SGR project in Uganda,” Mr Mono said in a speech delivered during the Bank’s partners engagement breakfast yesterday at Serena Hotel in Kampala.

The EADB through its lending operations has disbursed over USD 200 Million to Kenya, Uganda, Tanzania and Rwanda in the last five years. 

For Uganda in particular, the EADB has financed banks such as dfcu Bank to a tune of UGX 35 billion, Centenary Bank at UGX 17  billion, Finance Trust Bank at UGX 5.5 billion, Opportunity Bank at UGX 15 billion and FINCA at 17.5 billion, with most of financing geared towards Micro, Small and Medium Enterprises (MSMEs). 

In recognition of the critical role MSMEs play in the member states’ socio-economic development, EADB financed over 10,500 MSMEs across the region to a tune of USD 99 Million – through direct lending and collaborations with partner financial institutions. 

Through these interventions, over 110,000 jobs have been created in various sectors including Infrastructure, Manufacturing, Agriculture & Agri-processing and Social Services, reinforcing the Bank’s commitment to drive economic development and spur job creation in the member states. 49% of the jobs were awarded to women, further cementing the Bank’s dedication to fostering inclusivity and sustainable development. 

Minister for Finance, Planning and Economic Development and EADB Governing Council Chairperson – Hon. Matia Kasaija – revealed that EADB has been a key partner in driving Uganda’s economic growth and social transformation. The Minister further challenged the Bank to fund projects that create job opportunities.

In Uganda, EADB advanced a cumulative UGX209.4 billion to Micro, Small and Medium Enterprises (MSMEs), a sector that is the backbone of our economy. The financing distributed through the Bank’s two lines of credit in Uganda – the Rural Finance Enhancement Program (RFEP) and the Agri-finance Enhancement Program (AEP) – supported a wide range of businesses across key sectors creating over 35,850 job opportunities, with approximately 60% of these going to women and vulnerable groups. 

Mr. Mono noted that the Bank’s investment in SME projects in Uganda is hinged on the acknowledgement that they are the cornerstone of the country’s economic progress, accounting for 1.1 million of total businesses in Uganda. 

“We cannot understate the role that SMEs play in the development of Uganda’s economy as they are key drivers of innovation and job creation across different sectors. As such, our commitment to enhance financial access and inclusion for SMEs remains steadfast. Through strategic partnerships with other financial institutions in Uganda, EADB targets to provide financial support to an additional 10,000 SMEs this year, to further foster social-economic development in Uganda and the wider East Africa region” he said.

The partners engagement forum looked into economically viable and environmentally friendly projects that EADB will invest in for the next four years, while implementing its 2024-2028 Strategic Plan.

Derived from a combination of national strategic priorities of member states and UN Sustainable Development Goals, the projects are distributed across different sectors including Industrialization & Manufacturing, Infrastructure, Agriculture & Agri-processing, Social Services and Climate Change & Environmental Management. 

EADB’s endeavor to build resilient and prosperous economies for its member states comes against the backdrop of a strong credit rating by S&P Global Ratings, one of the top global credit rating agencies. 

“Last year, S&P Global Ratings assigned EADB its ‘A’ credit rating for the first time, the highest in East Africa, owing to our critical policy mandate, strong financial profile, extraordinary support from our shareholders and sound governance structures. The strong rating offers us vast opportunities for mobilizing cost-effective resources which are pivotal for driving sustainable development initiatives in East Africa. The stable outlook reflects the expectation that EADB will deliver on its policy mandate by increasing its footprint in member states, while maintaining a robust financial profile” added Mr. Mono.

Finance Ministry Permanent Secretary, Ramathan Ggoobi said, the good credit rating will help the bank mobilise more capital and the Bank’s board steps to raise more financing. 

We have enough financing for viable projects and businesses- East African Development Bank Boss says