Who is EADB?
The East African Development Bank or EADB is the apex financial institution for the East African Community. In addition to development finance and related services, it performs key roles in regional integration including offering development advice to member states of the East African Community.
Where is EADB?
The head office of EADB is in Kampala, Uganda. It also has offices in the capital cities of its member states – Nairobi (Kenya), Kigali (Rwanda), and Dar es Salaam (Tanzania). Burundi has applied to become a member state.
What is the mission of EADB?
EADB’s mission is to promote sustainable socio-economic development in East Africa by providing development finance, support and advisory services
When was the Bank founded?
EADB was established in 1967 under the treaty of the then East African Cooperation as a development finance institution to provide financial and related assistance to enterprises in the member States which, by their activities, are expected to make a positive contribution to socio-economic development. The Bank was re-established under its own charter in 1980 after the breakup of the East African Co-operation in 1977. The new charter allowed it to widen its membership and to offer advisory and consultancy services as well as financial services.
What was the effect of the new charter?
EADB’s role and mandate were reviewed and its operational scope expanded to include a broad range of financial services in the member states with an overriding objective of strengthening socio-economic development and regional integration.
Who owns EADB?
EADB is owned by four member states of the East African Community including Kenya, Uganda, Tanzania and Rwanda. The process for admission of the fifth member state, Burundi, into membership of the Bank is ongoing. Membership is also extended to other institutions with similar objectives for purposes of strategic partnerships. Current membership includes three development finance institutions and six commercial banks.
Is EADB rated?
EADB is internationally rated. The latest rating by Moody’s Investors Service is Baa3 (stable)
What are EADB’s core competencies?
EADB’s core competencies include:
- Helping to finance infrastructure projects in the East African region
- Boosting regional integration through financing public and private sector-led projects
- Building up the region’s capital markets through activities such as bond issues
- Improving the environment and socioeconomic conditions through loans and investment
How is EADB organised?
EADB has at its apex, the Governing Council, comprising the finance ministers of the member states. Next is the Board which contains representatives of shareholders of a minimum 10% paid-up capital. It also has an Advisory Panel made up of eminent persons from the international finance world. The Director General heads the Directorate and Heads of Business manage the country offices.
What is EADB’s primary focus?
EADB’s primary focus is the improvement of the well-being of the citizens of its member countries. Its activities achieve that aim by promoting food security, health care, skills development, infrastructure, climate change and regional integration, and investing in projects that provide jobs and prosperity, particularly tourism, education, health and agriculture.
What specific services does EADB offer?
EADB’s services and operations include loans, trade finance, equity investments, asset leasing, real estate development, loan guarantees and acting as an agency for donor funds. It offers long-term loans of five to 12 years duration and medium-term loans repayable over a period of two to four years. It also provides short-term or working capital loans repayable over a period of one to two years, offered for procurement of raw materials, spare parts and auxiliary equipment.
How does EADB differ from other financial institutions?
EADB occupies a special position. It can provide long-term project financing; development of financial markets through local currency bond issues; support regional integration by bringing member countries and institutional shareholders together to help the region’s economic development, and can act as an intermediary and conduit of financing for international financial institutions unable to lend directly to the region. It is familiar with the region through its links to government institutions, central banks, commercial banks, local development finance institutions and private sector operators.
How does EADB ensure development is clean or green?
EADB has built up its environment and social management systems and all environmental and social aspects are integrated in its lending and investment activities.
What information do you require from organisations applying for finance?
Applicants for financing must submit a detailed project feasibility study to the nearest EADB country office. The study should include a financial analysis, market analysis, technical aspects, risk assessment, organisation and management details, and environmental, social and gender issues, among other aspects of the project.
What is the procedure for processing funding requests?
On receipt of the project proposal, a decision is made on whether the project is eligible for funding or not. The applicant is then notified of the decision. Once the project is eligible for funding, a detailed appraisal is carried out. After the detailed appraisal, the Bank makes a decision and the client is notified accordingly.
The Bank commences disbursement upon fulfilment of the disbursement conditions agreed with the client.