The East African Development Bank (EADB) has committed to increasing its lending and corporate social investment programs to support private sector growth and job creation in the region. This resolution was made during the recent Governing Council meeting, which brought together finance ministers from key shareholder countries: Kenya, Uganda, Tanzania, and Rwanda.
John Mbadi, Kenya’s representative from the National Treasury and Economic Planning, emphasized the need to bolster private sector growth to tackle high unemployment rates in the region.
“We need to work towards supporting the private sector so that they can create more businesses and employ more youth given the high levels of unemployment in the East African region,” said Mbadi.
EADB’s 2023 financial results revealed a 9.2% decline in net loans and advances, from Ksh 16.3 billion to Ksh 14.8 billion. Despite this, the bank remains committed to supporting small and medium-sized enterprises (SMEs) to stimulate economic growth. Over the last five years, EADB has provided Ksh 6.5 billion ($50 million) in SME funding through partner financial institutions, significantly contributing to employment generation.
With Kenya alone facing a staggering 3.4 million unemployed youth and an annual influx of 800,000 new job seekers, stakeholders are urging for a more structured approach to integrating youth employment into economic planning.
“A number of youth graduate from universities and colleges every year, well-educated and trained, only to find no jobs in the market. It is time we start thinking about how to mainstream and integrate the youth in each action we take, including our budgeting processes,” Mbadi added.
Tanzania’s Finance Minister, Dr. Mwigulu Nchemba, highlighted the importance of financial independence in regional development.
“Given recent events, we have learned a lesson that we need to build our own financial muscle from within so that we can finance our own development programs, especially in infrastructure and economic empowerment, without relying a lot on external support,” he stated.
EADB’s commitment is further strengthened by its recent “A” rating from S&P Global Ratings in December 2024. The agency noted the bank’s success in reaching a significant number of SMEs, creating over 60,000 jobs in the past five years, and supporting initiatives such as low-cost housing and education.
The next EADB Governing Council meeting is scheduled to be held in Kigali, Rwanda, next year. Kenya, Uganda, and Tanzania each hold a 25.01% stake in EADB, while Rwanda owns 14.83%, bringing their combined shareholding to 89.86%.
