Uganda to benefit from sh74b OPEC funding

Uganda is among the East African countries that will benefit from a $20m (sh74b) funding from the Organisation of Petroleum Exporting Countries (OPEC) to support entrepreneurship and infrastructure development.

The revelation was made Monday after the OPEC Fund for International Development signed a $20m loan in favour of the East African Development Bank (EADB).
 
EADB will use the loan to support Small and Medium Enterprises (SMEs) and infrastructure projects in East Africa, according to a statement from EADB.

According to EADB, this is one of the bank's ways of expanding its resource mobilization activities to meet the growing financing needs of SMEs.

"EADB is an important regional development institution for delivering key development objectives across the East African region. It enjoys a high level of commitment from member states Kenya, Uganda, Tanzania and Rwanda, as well a diverse shareholder base that includes multilateral and bilateral development institutions and international financial institutions," the statement said.

"SMEs account for more than half of EADB's portfolio. They play an important part in development, driving economic growth and employment opportunities in East Africa and in developing countries more generally."

"We are very pleased to support private sector development in East Africa, which goes to the core of our mandate," said the OPEC Fund director-general, Dr. Abdulhamid Alkhalifa.

"We have partnered with EADB since 2001 and we appreciate the opportunity to strengthen our relationship. SMEs are critical to achieving progress toward Sustainable Development Goal (SDG) 8 on decent work and economic growth.
 
"Efficient infrastructure, as part of SDG 9, improves access to social services, reduces business and production costs, supports trade, and will ultimately provide East Africa with a more competitive business environment."

Vivienne Yeda, the director-general of EADB, said: "We are pleased to receive a line of credit of $20m from the OPEC Fund dedicated to financing SMEs and infrastructure projects in EADB member countries. We appreciate the confidence placed in the EADB by the OPEC Fund.
 
"By financing SMEs, we expect to promote enterprises that generate employment opportunities, social economic development and consequently promote regional integration. The SME sector is a critical pillar for sustainable economic growth as it is the backbone of the EADB member countries' economies."

This is the third loan the OPEC Fund has provided to EADB in support of SMEs. 

In 2001, the organization approved $10m, followed by another $15m in 2013.

EADB was established in 1967 under the treaty of the then East African Cooperation between Kenya, Uganda and Tanzania. Following the breakup of the East African Community (EAC) in 1977, the bank was re-established under its own charter in 1980.

Under the new charter, the bank's mandate and operational scope were expanded to provide a broad range of products and services that are tailored for the region's economic development requirements.

The bank supports sustainable social economic development and regional integration through financing projects in both the public and private sector entities in the EADB member states of Uganda, Kenya, Tanzania and Rwanda.