EADB Receives EUR25 Million for SME Financing

Regional Development Finance Institution, East African Development Bank (EADB),has landed a EUR 25 million line of credit deal with the European Investment Bank (EIB). EADB Receives EUR25 Million-OptimizedEADB Director General, Ms. Vivienne Yeda (left) and EIB Vice President, Mr. Pim van Ballekom, sign an agreement for a EUR 25 million line of credit. the line of credit will be used to part-finance projects implemented by private sector enterprises, and/or commercially run public-owned entities in the sectors of agriculture, agro-processing, fishing, manufacturing, construction, tourism and transport sectors, or education and healthcare services located in Kenya, Uganda, Tanzania and Rwanda Granted under the Cotonou Investment Facility Resources Protocol, the line of credit will be used to part-finance projects implemented by private sector enterprises, and/or commercially run public-owned entities in the sectors of agriculture, agro-processing, fishing, manufacturing, construction, tourism and transport sectors, or education and healthcare services located in Kenya, Uganda, Tanzania and Rwanda. EADB Director General, Ms. Vivienne Yeda said the facility also has a Technical Assistance component to support the institutional strengthening of the Bank’s risk management and internal control framework. Ms. Yeda called on member states to prioritise regional integration noting thatthe region stood to gain much by opening up its borders. “There is no better way of facilitating the private sector to do what they do best than to open up our economies, enabling them to produce efficiently and access markets in a timely fashion,” said Ms. Yeda. EIB Vice President, Mr.Pim van Ballekom said the financing will enable entrepreneurs and established firms to invest in new markets and can be expected to contribute to new jobs He observed that the money will be used for co-financing debt and leasing transactions for start-up, expansion, diversification and modernisation projects undertaken by private sector SMEs in Kenya, Uganda, Tanzania and Rwanda. “Access by small and medium sized businesses to long-term finance is essential for creating new jobs and economic growth,” said Mr. van Ballekom. Ms. Yeda asked the private sector to take advantage of the favourable business environment to innovate, diversify and discover new markets. “I am pleased that the facility we are signing with EIB today will enable private sector enterprises, particularly SMEs that are innovative and hungry for expansion to access affordable credit,” said Ms. Yeda. The new EIB-backed lending programme is the first joint engagement to improve access to investment loans by small and medium sized companies and represents the start of a new era of cooperation between the European Investment Bank and the East African Community’s financial institution.