The East African Development Bank (EADB) has secured a $40 million loan from the OPEC Fund for International Development to drive regional development initiatives across East Africa.
The East African Development Bank (EADB) is a regional development finance institution established to provide long-term finance for enterprises in East Africa to promote development and regional integration through investments in key sectors, including infrastructure, agriculture, education, and industry
Speaking at the signing ceremony, Benard Mono, Ag. Director General of EADB, underscored the significance of this long-standing partnership. “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. 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.”
He added: “Today’s agreement will empower us to reach even more SMEs and invest robustly in the infrastructure that the region urgently needs. Each round of funding has deepened our impact, enabling us to deliver tangible results for millions across East Africa.”
The latest investment which marks the fourth and largest financing deal between the two institutions is aimed at accelerating sustainable economic development across the region. This latest financing is targeted to support small and medium-sized enterprises (SMEs) and strategic infrastructure projects across EADB’s member states, reflecting both partners’ shared commitment to promoting resilient and inclusive growth in the region.
In a strategic move to further deepen capital flows for critical projects, the OPEC Fund has also been mandated to arrange an additional US$25 million in syndicated funds, expanding EADB’s capacity to catalyse larger-scale development initiatives.
Also speaking at the event, OPEC Fund President Dr. Abdulhamid Alkhalifa said: “Our partnership with EADB exemplifies our commitment to working with regional financial institutions to achieve sustainable development outcomes. 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.”
The EADB and OPEC Fund partnership began in 2002 with a US$10 million financing agreement, which was channeled into priority development sectors including education, tourism, and transportation. The collaboration deepened in 2014 with a US$15 million facility focused on boosting SMEs, particularly in the housing and hospitality sectors. In 2020, a further US$20 million financing was secured to underpin agro-processing and critical infrastructure ventures.
The OPEC Fund aims to drive development through partnerships with regional financial institutions. For East Africa, this deal underscores growing confidence in regional development banks to act as effective channels for impact-oriented financing.
The newly signed loan will directly fund on-lending SMEs and transformative infrastructure projects throughout EADB member countries, supporting the bank’s mandate to advance sustainable social and economic progress. Notably, the addition of a US$25 million syndicated facility underscores OPEC Fund’s confidence in EADB’s ability to deliver region-wide impact and signals a broadened approach to mobilizing finance for Africa’s development priorities.
“EADB remains strongly committed to deepening our collaboration with the OPEC Fund,” Mr. Mono said. “This partnership continues to be a critical enabler in our mission to finance inclusive development and regional prosperity.”
