EADB secures $40m from OPEC Fund to bolster regional growth

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The East African Development Bank (EADB) has formalised a $40m loan agreement with the OPEC Fund for International Development, marking a significant step toward accelerating sustainable economic development across East Africa.

The signing, held at the OPEC Fund’s headquarters in Vienna, marks the fourth and largest financing deal between the two institutions.

This latest financing is targeted to support small and medium-sized enterprises (SMEs) and strategic infrastructure projects across EADB’s member states, reflecting both partners' shared commitment to promoting resilient and inclusive growth in the region.

In a strategic move to further deepen capital flows for critical projects, the OPEC Fund has also been mandated to arrange an additional $25m in syndicated funds, expanding EADB’s capacity to catalyze larger-scale development initiatives.

Speaking at the signing ceremony, Benard Mono, Ag. Director General of EADB, underscored the significance of this long-standing partnership.

“This fourth agreement with the OPEC Fund is not only a financial milestone but also testament to our trust and shared vision for East Africa. Over the past two decades, OPEC Fund’s support has strengthened our ability to fund vital sectors, from education and tourism to transportation and agro-processing.

Today’s agreement will empower us to reach even more SMEs and invest robustly in the infrastructure that the region urgently needs. Each round of funding has deepened our impact, enabling us to deliver tangible results for millions across East Africa,” Mono added.

OPEC Fund President, Dr Abdulhamid Alkhalifa, highlighted that the partnership with EADB exemplifies their commitment to working with regional financial institutions to achieve sustainable development outcomes.

“By supporting SMEs and infrastructure in East Africa, we are directly investing in the region’s economic resilience and long-term prosperity. We are proud to deepen this partnership and mobilize additional resources that will drive impactful change.”

The EADB and OPEC Fund partnership began in 2002 with a $10m financing agreement which was channeled into priority development sectors including education, tourism, and transportation.

The collaboration deepened in 2014 with a $15m facility focused on boosting SMEs, particularly in the housing and hospitality sectors. In 2020, a further $20m financing was secured to underpin agro-processing and critical infrastructure ventures.

The newly signed loan will directly fund on-lending SMEs and transformative infrastructure projects throughout EADB member countries, supporting the bank’s mandate to advance sustainable social and economic progress.

Notably, the addition of a $25m syndicated facility underscores OPEC Fund’s confidence in EADB’s ability to deliver region-wide impact and signals a broadened approach to mobilizing finance for Africa’s development priorities.