EADB mulls enhanced private sector investment to spur job creation

KAMPALA, UGANDA | THE INDEPENDENT | The Governing Council of the East African Development Bank (EADB) is mulling increased lending and corporate social investment programs to the private sector to create jobs, especially for youth and women.

This was revealed during the ordinary meeting of the EADB Council held in Kampala last week and attended by the Ministers of Finance from Member States of Uganda, Kenya, Tanzania, and Rwanda and chaired by Hon. Matia Kasaija, the Minister of Finance, Planning and Economic Development of the Republic of Uganda.

In 2024 the Bank continued with its focus on supporting Small and Medium Enterprises (SMEs) in the region under which program US$50 million has been injected into the sector through partner financial institutions over the last five years.

Through this intervention, the Bank generated over 18,000 jobs, over 60% of which are to women and youth involved in agriculture and agribusiness-related enterprises. Supporting food security in the region remains a key plank of the regional lender’s strategy.

Speaking after the Council meeting, CPA John Mbadi Ng’ongo, the Cabinet Secretary, The National Treasury and Planning, Republic of Kenya said, “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.”

He added, “Several youth graduate from Universities and Colleges every year, well- educated and trained, only to find no jobs in the market. Currently, Kenya alone has 3.4 million youths unemployed, and every year, we produce 800,000 young Kenyans for 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.’’

Mwigulu Nchemba, the Minister of Finance in the United Republic of Tanzania echoed the need to support the private sector and emphasized a need to strengthen cooperation between the Member States. He added, “Given the recent events we have learned a lesson that we need to build our own financial muscle from within so that we can finance our development programs, especially in infrastructure and economic empowerment without relying a lot on external support.”

Yusuf Murangwa, the Minister of Finance and Economic Planning of the Republic of Rwanda also echoed the need to strengthen local institutions to play a bigger role in the development of the Member States. He said “Our future is in the hands of our institutions in which we must have a stake and maintain control. We believe the Bank as currently constituted provides us with the opportunity to serve our purpose for promoting investment, economic development, and strengthening independence.”

Charles Mwamwaja, EADB Chairman of Board of Directors, highlighted that during the meeting, several issues were discussed including developing a communication strategy to enable the bank to become more visible in the region.

He said, “We need to start developing a comprehensive communications strategy to enable the bank to assume its rightful position in the East African region as we look forward to working with everyone and make them understand our message, activities, and the impact we have been making in the Member States since its inception in 1967.

Most people know the bank for sovereign lending, which is not right, and our focus now should be much broader to encourage the private sector to make good use of the bank’s services.”

The Governing Council received reports from the Board of Directors highlighting the performance of the Bank whilst reaffirming the support of all Member States to the Bank’s growth strategies.

Further, it commended the Board and Management for a sterling performance which led to the Bank receiving an “A” rating by S&P Global Ratings in December 2024, following the “Baa3” rating that had been assigned by Moody’s.

The Council urged the Board and Management to leverage the good credit rating and to increase efforts not only to maintain the good credit rating but to improve it further.

The Governing Council will hold its next meeting in Kigali, Rwanda in 2026.