, NAIROBI, Kenya Oct 21 – The East African Development Bank (EADB) is set to receive a Line of Credit (LoC) of Sh3.5 billion from the African Development Bank (AfDB) to assist in the long-term financing of projects in the East African region.
The AfDB Board of Directors approved the LoC that will help in promoting the development of EADB member states that include Kenya, Rwanda, Tanzania and Uganda.
The EADB invests in projects in various sectors including infrastructure, manufacturing, tourism, agriculture, transport, education and health, aimed at increasing the growth and prosperity of the East African region and its people.
The proposed terms of the facility shall enable the EADB to fulfil its mandate by funding projects that need long-term financing, such as infrastructure, schools, agricultural and manufacturing projects since long-term finance can be difficult to source in the East Africa region.
This will be the eighth LoC to EADB since its establishment.
In 2013, the EADB received Sh2.1 billion in additional equity investment from the AfDB to further strengthen EADB’s capital and to enhance its creditworthiness, resulting in an AfDB shareholding of 11 percent.
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.