The Organisation of the Petroleum Exporting Countries Fund for International Development has signed a $20m term loan in favour of the East African Development Bank.
EADB will use the loan to support small- and medium-sized enterprises and infrastructure projects in East Africa.
EADB is an important regional development institution for delivering key development objectives across the region and enjoys a high level of commitment from Kenya, Uganda, Tanzania and Rwanda, as well as a diverse shareholder base that includes multilateral and bilateral development institutions and international financial institutions.
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. The bank is expanding its resource mobilisation activities to meet the growing financing needs of SMEs.
“We are very pleased to support private sector development in East Africa, which goes to the core of our mandate,” said OPEC Fund Director General, Dr. Abdulhamid Alkhalifa.
“We have partnered EADB since 2001 and we appreciate the opportunity to strengthen our relationship. SMEs are critical to achieving progress toward Sustainable Development Goal 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, added, “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 organisation approved $10m, followed by a further $15m in 2013.