EADB secures $40mn from OPEC fund to drive SME growth, infrastructure in East Africa
The acting director general of the East African Development Bank (EADB), Mr Benard Mono (left), and the president of the OPEC Fund for International Development, Dr Abdulhamid Alkhalifa (right), sign a $40 million (approximately Sh105.7 billion) loan agreement at the OPEC Fund headquarters in Vienna, Austria. The funding aims to support SMEs and infrastructure development across East Africa. PHOTO|COURTESY
What you need to know:
- The newly signed agreement positions EADB to further its mission of promoting sustainable economic and social progress across its member states. The inclusion of a $25 million syndicated facility highlights growing confidence in EADB’s capacity to drive meaningful development.
Dar es Salaam. The East African Development Bank (EADB) has signed a $40 million (approximately Sh105.7 billion) loan agreement with the OPEC Fund for International Development to boost small and medium-sized enterprises (SMEs) and key infrastructure projects across East Africa.
Signed recently at the OPEC Fund’s headquarters in Vienna, Austria, the agreement marks the largest financing deal between the two institutions to date, reinforcing their joint commitment to inclusive and sustainable development in the region.
According to a statement issued on Sunday June 22, 2025, the loan will directly support lending to SMEs and finance transformative infrastructure initiatives across EADB member states. In addition, the OPEC Fund will mobilise a further $25 million in syndicated funds to expand the impact of the financing.
Speaking during the signing ceremony, EADB’s acting director general, Mr Benard Mono, underscored the enduring strength of the partnership.
“This fourth agreement with the OPEC fund is not just a financial milestone—it reflects our shared vision for East Africa’s future,” he said. “Over the past two decades, the OPEC Fund’s support has enabled us to finance critical sectors, including education, tourism, transport, and agro-processing.”
“This latest facility will allow us to reach more SMEs and address pressing infrastructure needs across the region. With each round of funding, we extend our impact and bring tangible benefits to millions of East Africans,” he added.
The President of the OPEC Fund, Dr Abdulhamid Alkhalifa, echoed the sentiments, noting that the partnership reflects the fund’s broader mission to collaborate with regional development banks.
“Our partnership with EADB exemplifies our commitment to regional development. By supporting SMEs and infrastructure in East Africa, we are directly investing in the region’s resilience and long-term prosperity,” he said.
“We are proud to deepen this collaboration and help mobilise additional resources that can deliver real impact,” he added.
The relationship between the two institutions began in 2002 with a $10 million facility to support sectors such as education and tourism. It was expanded in 2014 with a $15 million loan aimed at strengthening SMEs, particularly in housing and hospitality. A further $20 million was secured in 2020 to fund agro-processing and infrastructure development.
The newly signed agreement positions EADB to further its mission of promoting sustainable economic and social progress across its member states. The inclusion of a $25 million syndicated facility highlights growing confidence in EADB’s capacity to drive meaningful development.
“EADB is firmly committed to strengthening our collaboration with the OPEC Fund,” Mr Mono affirmed. “This partnership is central to our mission of financing inclusive growth and enhancing regional prosperity.”
