What you need to know:
The line of credit has tenure of 10 years.
KAMPALA- The East African Development Bank (EADB) has received a Shs108 billion ($40 million) loan from the African Development Bank to finance long-term projects in the East African region.
The target projects—infrastructure, manufacturing, tourism, agriculture, education and health— are necessary for development of the region.
“The AfDB Board of Directors 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,” reads a statement from EADB.
The proposed line of credit has tenure of 10 years.
Regional governments have invested a lot in infrastructure developments mainly roads, railway such as the Standard Gauge, irrigation to increase agriculture output and tourism.
A line of credit is an agreement between a bank and a company or an individual to provide a specified amount of loan on demand from the borrower.
The recent funding comes a year after the EADB received Shs65 billion ($24 million) in additional equity investment from the AfDB aimed at strengthening EADB’s capital and enhancement of EADB’s creditworthiness.
The $Shs65 billion funding according to a press statement from EADB, resulted in AfDB shareholding of 11 per cent.
The equity was supported by a Shs2.4 billion ($900,000) technical assistance support facility, currently under implementation.