EADB Launches Shs49 Billion Fund for Youth and Women-Led Businesses

The East African Development Bank (EADB) has announced the establishment of a significant fund totaling $13 million (around Shs49 billion), specifically designed to empower youth and women-led enterprises across East Africa. This move signals a new commitment to inclusive economic development within the region.

The fund’s primary objective is to channel financial resources through partner institutions, reaching entrepreneurs who often face challenges securing loans from conventional lenders due to perceived risk. This strategy addresses the critical need for capital among young people and women, who constitute a substantial portion of the East African population and drive many small and medium-sized businesses, yet struggle with access to affordable, long-term financing.

Uganda’s Finance Minister, Mr. Matia Kasaija, highlighted the fund’s strategic importance during the EADB Governing Council meeting in Kampala, stating that it recognizes the vital role of these groups in driving economic growth and innovation. The capitalization of the fund will largely come from EADB’s profits, with ongoing efforts to attract additional resources from development partners to ensure its scalability and long-term viability.

This launch follows EADB’s strong financial performance in the past year, marked by a 51% increase in profit before tax and substantial growth in lending activities. The bank also saw significant leadership changes, with Rwanda’s Finance Minister, Hon. Yusuf Murangwa, assuming the role of Chairperson of the Governing Council, and Dr. Ramathan Ggoobi appointed as the new Chairperson of the Board of Directors.

Established in 1967, EADB aims to foster regional transformation by championing those poised to lead its future development.

Read more at: https://www.monitor.co.ug/uganda/news/national/-eadb-sets-up-shs49b-fund-for-youth-and-women-led-enterprises-5455066