The East African Development Bank (EADB) has taken a significant leap forward in fostering sustainable economic development across East Africa by formalizing a $40 million (105.7bn/- ) loan agreement with the OPEC Fund for International Development. This notable partnership, represents the largest financing deal to date between the two institutions.

The agreement was sealed at the OPEC Fund's headquarters in Vienna, and it specifically aims to bolster small and medium-sized enterprises (SMEs) as well as crucial infrastructure projects across EADB's member states.

The collaboration is emblematic of a shared commitment between EADB and the OPEC Fund to foster resilient and inclusive growth throughout the region. To further amplify the impact of this financing, the OPEC Fund has been tasked with arranging an additional $25 million in syndicated funds, thereby enhancing EADB's capacity to launch larger-scale development initiatives.

During the signing ceremony, Benard Mono, the Acting Director General of EADB, emphasized the importance of this enduring partnership. “This fourth agreement with the OPEC Fund is not just a financial milestone; it is a testament to our mutual trust and shared vision for East Africa’s future. Over the past twenty years, the OPEC Fund’s unwavering support has fortified our capacity to finance vital sectors such as education, tourism, transportation, and agro-processing.”

He further elaborated, “Today’s agreement will empower us to extend our reach to more SMEs and invest significantly in the infrastructure that the region urgently requires. Each funding round deepens our impact, enabling us to deliver tangible benefits to millions across East Africa.”

Echoing these sentiments, Dr. Abdulhamid Alkhalifa, President of the OPEC Fund, remarked, "Our partnership with EADB exemplifies our dedication to collaborating with regional financial institutions to achieve sustainable development outcomes. By backing SMEs and infrastructure projects in East Africa, we are investing directly in the region's economic resilience and its long-term prosperity. We take pride in deepening this partnership and mobilizing additional resources that will bring about impactful change."

The collaboration between EADB and the OPEC Fund dates back to 2002, when a $10 million financing agreement was established to channel resources into key development sectors, including education, tourism, and transportation. This partnership expanded in 2014 with a $15 million facility aimed specifically at strengthening SMEs, particularly in the housing and hospitality sectors. In 2020, an additional $20 million was secured to support agro-processing and other critical infrastructure projects.

 The newly minted loan is poised to directly fund lending to SMEs and transformative infrastructure projects across EADB member countries, thereby advancing the bank’s mission to promote sustainable social and economic progress. Particularly noteworthy is the introduction of a $25 million syndicated facility, which not only highlights the OPEC Fund’s confidence in EADB's capacity to effect change across the region but also signals a more comprehensive approach to mobilizing financing for Africa’s development needs.

 “EADB is firmly committed to deepening our collaboration with the OPEC Fund,” Mr. Mono affirmed. “This partnership remains a vital enabler of our mission to finance inclusive development and foster regional prosperity.”