AfDB grants Sh4bn to EADB to support growth in East Africa
This initiative will help improve access to finance in the region.The African Development Bank (AfDB) has granted Sh4 billion (€35.5 billion) to the East African Development Bank (EADB) to support regional growth.
AfDB's regional director for the East Africa Resource Center (EARC) Gabriel Negatu said the bank was pleased to partner with the EADB in its effort to close financial gaps in the region, thus facilitating growth across the various sectors.
"This facility is in line with AfDB's 10-year strategy, which aims, among others things, to deepen financial markets and promote inclusive growth. EADB plays a catalytic role in enhancing growth within the EAC region, supporting various programmes within the region," said Mr Negatu. Since its inception, EADB has helped fund 49 projects worth Sh36.6 billion.
This initiative will help improve access to finance in the region, which already ranks high on the list of African countries with ease of access to financial services thanks to its high uptake of mobile money.
The Global Findex Database 2014 said that 75 per cent of the Kenyan population is banked, which is above the continent global average of 62 per cent, while 44 per cent of Ugandan citizens and 40 percent of Tanzanians have access to banking services.
Meanwhile, 89 per cent of Rwandans have access to financial services, up from 72 per cent in 2012, the FinScope survey 2016 has revealed.