EADB, OPEC Fund Sign $40 Million Facility for SMEs in EAC

The East African Development Bank (EADB) has today formalized a US$40 million loan agreement with the OPEC Fund for International Development to accelerate sustainable economic development across East Africa.

The deal was sealed at the OPEC Fund’s headquarters in Vienna, the fourth and largest financing deal between the two institutions since 2014.

“This fourth agreement with the OPEC Fund is not only a financial milestone but also testament to our trust and shared vision for East Africa,” said Benard Mono, Ag. Director General of EADB.

“Over the past two decades, OPEC Fund’s support has strengthened our ability to fund vital sectors, from education and tourism to transportation and agro-processing.”

Beneficiaries of the deal are small and medium-sized enterprises (SMEs) and strategic infrastructure projects across EADB’s member states.

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The OPEC Fund will also pump in an additional $25 million in syndicated funds to expand EADB’s capacity to catalyse larger-scale development initiatives.

“By supporting SMEs and infrastructure in East Africa, we are directly investing in the region’s economic resilience and long-term prosperity. We are proud to deepen this partnership and mobilize additional resources that will drive impactful change,” said OPEC Fund President Dr. Abdulhamid Alkhalifa.

The EADB and OPEC Fund partnership began in 2002 with a $10 million financing agreement, which was channeled into priority development sectors including education, tourism, and transportation.

In 2014 the two signed a $15 million facility focused on boosting SMEs, particularly in the housing and hospitality sectors.

Six years later, they again signed a further $20 million financing which was secured to uplift agro-processing and critical infrastructure ventures.