EADB to fund more projects in Uganda

Oct 24, 2014

The East African Development Bank (EADB) has received credit worth $40m (about sh104b) from the African Development Bank (AfDB) to finance infrastructure, manufacturing, tourism, agriculture, transport, education and health projects

By John Odyek

The East African Development Bank (EADB) has received credit worth $40m (about sh104b) from the African Development Bank (AfDB) to finance infrastructure, manufacturing, tourism, agriculture, transport, education and health projects.

The credit fund was approved last week.

The AfDB board of directors underlined the importance of the EADB in promoting the development of its member states and in supporting regional integration within the East African Community.

A statement from the EADB said the support is aimed at increasing the growth and prosperity of the East African region and its people.

The credit will be availed over 10 years. The term will help EADB to fulfil its mandate by funding projects that need long-term funding such as infrastructure, schools and agricultural projects as longterm finance can be difficult to source in the East African region.

This will be the eighth credit to EADB since its establishment, indicating the long-term strategic partnership between the two banks.

In 2013, the EADB received $24m (about sh62.4b) in additional equity investment from the AfDB to further strengthen EADB’s capital and enhance its creditworthiness, resulting in an AfDB shareholding of 11%.

The equity was supported by a $900,000 technical assistance support facility, currently under implementation.

EADB has successfully implemented a turnaround strategy after a significant legal dispute affected its operations in 2008/9.

EADB has since successfully strengthened its policies and internal structures, and continues to grow its balance sheet and sustained profitability EADB is now in the third ‘growth’ phase of its strategic plan, which aims to increase support to projects in East Africa and its portfolio. It has a strong project pipeline requiring external funding resources.

EADB is currently rated “Ba1” by Moody’s, with a stable outlook. This rating reflects the institutions’ stable financial profile.

EADB was rated best performing development finance institution in 2013 by The Association of African Development Finance Institutions.

RELATED STORIES:

EADB, China Bank seal deal

EADB in energy scheme

(adsbygoogle = window.adsbygoogle || []).push({});