• Reference: P-Z1-HAA-059
  • Approval date: 14/10/2014
  • Start date: 10/12/2015
  • Appraisal Date: 15/03/2014
  • Status: OngoingOnGo
  • Implementing Agency: EAST AFRICAN DEVELOPMENT BANK (Private Sector)
  • Location: Kampala


2.1 The proposed transaction envisages extending a LOC to EADB for US$40 million, with a maturity profile of 10 years and a 2 year grace period. The purpose of the LOC is to assist EADB achieve its mandate of promoting economic growth in the EAC member countries by funding a pipeline of country and regional projects from Kenya, Tanzania, Uganda and Rwanda. The pipeline includes projects from the agro and food industries, infrastructure, manufacturing and education sectors, with a medium/long term maturity profile of 7-10 years. The specific LoC related pipeline is part of a broader EADB pipeline which includes the said sectors as well as other pipeline projects in regional infrastructure (roads), energy (micro hydro power-stations) and others benefiting the whole East African region and promoting regional integration. 2.2 This proposed transaction will be AfDB


To provide a 10 year LOC for USD 35 mln with a 2 to 3 year grace period. In addition to this, the Bank has recently considered and approved a US$24 mln additional equity investment in EADB (US$14 mln "Callable" and US$10 mln "Paid-in") to further strengthen EADB's capital. The new equity was supported by a US$0.9 mln TA package to strengthen EADB's operations. Implementation of the TA package will buttress both the already approved equity injection and this LOC.

Although there are differences among the EAC countries, the financial systems in Kenya, Uganda, Tanzania and Rwanda are generally small, even relative to the size of the member countries


EADB was created in 1967 under the Treaty for East African Cooperation, with EADB as the sub-regional multilateral lender. It is headquartered in Kampala, Uganda with offices in its other paid-up member countries of the EAC. Four members of the EAC, Kenya, Rwanda, Uganda and Tanzania, collectively own 85.9% of EADB's paid-in capital with the fifth member, Burundi still to contribute to EADB's capital. Several Development Finance Institutions (DFIs) own the remainder with AfDB being the largest single DFI equity investor in EADB. EADB

Key contacts

MACHARIA Julius Karuga - PIFD


Finance source Amount
ADBUSD 29,857,654
DeltaUSD 10,142,346
TotalUSD 40,000,000
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