{{The East African Development Bank (EADB) has landed a €25 million line of credit deal with the European Investment Bank (EIB).}}
Granted under the Cotonou Investment Facility Resources Protocol, the line of credit will be used to part-finance projects implemented by private sector enterprises, and/or commercially run public-owned entities in the sectors of agriculture, agro-processing, fishing, manufacturing, construction, tourism and transport sectors, or education and healthcare services located in Kenya, Uganda, Tanzania and Rwanda.
EADB Director General Vivienne Yeda said the facility also has a Technical Assistance component to support the institutional strengthening of the Bank’s risk management and internal control framework.
Ms Yeda called on member states to prioritise regional integration noting thatthe region stood to gain much by opening up its borders.
“There is no better way of facilitating the private sector to do what they do best than to open up our economies, enabling them to produce efficiently and access markets in a timely fashion,” said Ms Yeda.
EIB Vice President Pim van Ballekom said the financing will enable entrepreneurs and established firms to invest in new markets and can be expected to contribute to new jobs
He observed that the money will be used for co-financing debt and leasing transactions for start-up, expansion, diversification and modernisation projects undertaken by private sector SMEs in Kenya, Uganda, Tanzania and Rwanda.
“Access by small and medium sized businesses to long-term finance is essential for creating new jobs and economic growth,” said Mr. van Ballekom.
Ms Yeda asked the private sector to take advantage of the favourable business environment to innovate, diversify and discover new markets.
“I am pleased that the facility we are signing with EIB today will enable private sector enterprises, particularly SMEs that are innovative and hungry for expansion to access affordable credit,” said Ms Yeda.
The new EIB-backed lending programme is the first joint engagement to improve access to investment loans by small and medium sized companies and represents the start of a new era of cooperation between the European Investment Bank and the East African Community’s financial institution.
The East African Development Bank (EADB) provides a broad range of financial services in its Member States of Kenya, Uganda, Tanzania and Rwanda with an overriding objective of strengthening socio-economic development and regional integration.
EADB is owned by the four Member States of Kenya, Uganda, Tanzania and Rwanda. Other shareholders include the African Development Bank (AfDB), the Netherlands Development Finance Company (FMO), German Investment and Development Company (DEG), SBIC-Africa Holdings, Commercial Bank of Africa, Nairobi, Nordea Bank of Sweden, Standard Chartered Bank, London and Barclays Bank Plc., London.
NMG
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