East Africa: Opec Funds to East Africa for Developmental Objectives

Oct 05, 2020 | Ethiopian Herald - All Africa

The OPEC Fund for International Development has signed a 20 million USD term loan in favor of East African Development Bank, according to Apo group.

East African Development Bank will use the loan to support small-and medium-size enterprises and infrastructure projects in East Africa. East African Development Bank is an important regional development institution for delivering key development objectives across the East Africa region. It enjoys a high level of commitment from member states Kenya, Uganda, Tanzania and Rwanda, as well a diverse shareholder base that includes multilateral and bilateral development institutions and international financial institutions.

Small and medium enterprise account for more than half of east African development bank'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 mobilization activities to meet the growing financing needs of small and medium enterprises.

"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 with East African Development Bank since 2001 and we appreciate the opportunity to strengthen our relationship. Small and medium enterprises are critical to achieving progress toward Sustainable Development Goal 8 on decent work and economic growth. Efficient infrastructure, as part of sustainable development goals 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 East Africa Development Bank, said: "We are pleased to receive a line of credit of 20 million USD from the OPEC Fund dedicated to financing small and medium enterprises and infrastructure projects in East African Development Bank member countries. We appreciate the confidence placed in the East African Development Bank by the OPEC Fund. By financing Small and medium enterprises, we expect to promote enterprises that generate employment opportunities, social economic development and consequently promote regional integration.

The small and medium enterprise sector is a critical pillar for sustainable economic growth as it is the backbone of the East African Development Bank member countries' economies." This is the third loan the OPEC Fund has provided to East African Development Bank in support of small and medium enterprises. In 2001, the organization approved 10 million USD, followed by a further 15 million USD in 2013... Read more on All Africa

Source: All Africa