KAMPALA, Uganda - The African Development Bank (AfDB) has given the East African Development Bank a $40 million line of credit (LoC) for financing various projects in the region.
The proposed LoC has a tenure of 10 years. This term helps the EADB to fulfill its mandate by funding projects that need long-term funding, such as infrastructure work, schools, agricultural projects and manufacturing project, for which long-term finance can be difficult to source regionally.
According to an official statement last week The AfDB Board of Directors approved the LoC on 15 October 2014. The Board noted the importance of the EADB in promoting the development of its member states – Kenya, Rwanda, Tanzania and Uganda - and in supporting regional integration within the East African Community. Burundi has applied to become a member state.
This will be the eighth LoC to EADB since its establishment, underlining the long-term strategic partnership between AfDB and EADB. EADB has successfully implemented a turnaround strategy after a significant legal dispute affected its operations in 2008/9. The EADB has since successfully strengthened its policies and internal structures.
East African Business Week
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