East Africa Development Bank(EADB) Director General Mrs Vivienne Yeda Apopo has today confirmed that their financial strength highly depends on African Development Bank (AFDB) noting that it has led the bank to be recognized as Africa’s best performing development finance institution with a Ba3 rating.
The projects to benefit do touch on infrastructure, manufacturing, agribusiness and education sectors.
“We however would still need to tap into debt and equity sources from Development Finance Institutions (DFIs) and commercial finance markets to meet the deficit fund remaining.” She added
EADBs project pipeline comprises of 49 projects that are worth USD361 million with a track record of increasing profits gradually over the past 5 years.
The bank increased its profits by 14 per cent in 2014 on a year on year comparison. In 2012, it increased profits to USD7.3 million from USD6.7M the previous year.
Speaking at the signing ceremony, AfDB Regional Director for the East Africa Resource Center (EARC), Mr. Gabriel Negatu noted that this transaction aligns with several of AfDB’s policies and strategies including the Industrial Sector Policy Guidelines (1986), the Financial Sector Policy (2003), the Private Sector Operations Strategy, (2013) as well as the Eastern Africa Regional Integration Strategy (2010).
“This development is also in line with AfDB’s Ten Year Strategy which aims among other things to deepen financial markets and promote inclusive growth. EADB plays a catalytic role in enhancing growth within the EAC region, supporting various programs within the region.
The LOC will also complement AfDB’s recent equity investment of US$24 million, in addition to other ongoing interventions.” He noted.
AfDB and EADB’s 47 year partnership has lead to defined objectives for both banks with major focus on inclusive growth through private sector development, human capital development, gender equality, green growth and sustainable development in the African region