By Sylvia Juuko
RWANDA has been admitted into membership of the East African Development Bank (EADB) subject to fulfilment of share capital subscription requirements, finance minister, Dr Ezra Suruma, has said.
Addressing a press conference, Suruma said the EADBâ€™s governing council had resolved to admit Rwanda as a Class A member at their 35th meeting held on February 23 at the Imperial Royale Hotel in Kampala.
Suruma, who is the chairman of the council, said Burundi would also apply for membership soon.
This follows the admission of Rwanda and Burundi into the East African Community (EAC).
â€œAccording to the current charter, the Class A members of EADB are member countries, while Class B are institutions. Our expectation is that the new members will have to subscribe to shareholding in equal amounts. So they will bring in additional capital distributed equally,â€ Suruma said.
Kenya, Tanzania and Ugandaâ€™s shareholding amounts to 24.7% with Rwanda expected to hold the same amount of shares. About 1,000 shares are equivalent to 10%.
The governing council meeting was attended by Mustafa Mkulo, the finance minister for Tanzania and Amos Kimunya, the finance minister for Kenya. Other shareholders like SBIC Africa Holdings, Standard Chartered Bank London and the African Development Bank sent representatives.
The council also agreed that EADB goes ahead with its in-house equity fund to finance small and medium enterprises (SMEs) in the region.