The African Development Bank (ADB) and the African Development Fund (ADF) have approved a loan of US$40mn and a grant of UA0.9mn*, totalling an amount equivalent to US$41.28mn to finance the East African Development Bank (EADB) support project.
The project’s objective is to assist economic development and industrial growth, and facilitate stronger economic integration of the member countries of the East African Community (EAC) through the EADB. It will help the EADB strengthen its lending capacity and thereby enable it to finance viable investment projects within the EAC as well as improve its operational and financial performances.
The ADB loan will be used to finance the goods and services required for the implementation of eligible investment subprojects in EADB member countries of Kenya, Tanzania and Uganda while the technical assistance grant resources will finance consultancy services to enhance EADB’s risk and investment management capabilities as well as the equipment required to upgrade its information technology systems.
The ADB loan and ADF grant will contribute to poverty reduction in EADB member countries through the increased demand for agricultural raw materials brought about by expansion of industrial activities, which helps in sustaining rural economies. The ADB and ADF resources will also help create employment thereby providing additional income to rural dwellers.
The EADB whose headquarters are located in Kampala, Uganda, was established in 1967 as the sub-regional development bank for the East African community, which comprises Kenya, Uganda and Tanzania. It is charged with the mandate of mobilising financial resources to promote the development of its member states.
The ADB group’s cumulative commitments to the EADB amount to 55.06 million Units of Account (UA)* equivalent to US$79.26mn for eight operations, including two equity investments and six lines of credit.