The East African Development Bank (EADB) has entered into its largest financing agreement to date with the OPEC Fund for International Development, securing Sh5.2 billion to advance small and medium-sized enterprises (SMEs) and key infrastructure projects across East Africa.

The loan agreement was signed on Tuesday at the OPEC Fund’s headquarters in Vienna.

According to details released, the funding arrangement will also see the OPEC Fund raise an additional Sh3.25 billion in syndicated resources, aimed at widening the scope and impact of development projects in EADB member states.

Benard Mono, Acting Director General of EADB, reflected on the significance of the partnership, explaining that the latest agreement demonstrates mutual trust and a shared vision.

“This fourth agreement with the OPEC Fund is not only a financial milestone but also testament to our trust and shared vision for East Africa. Over the past two decades, OPEC Fund’s support has strengthened our ability to fund vital sectors, from education and tourism to transportation and agro-processing,” he said.

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Mono further highlighted how the funds will enable EADB to reach more businesses and enhance regional infrastructure.

“Today’s agreement will empower us to reach even more SMEs and invest robustly in the infrastructure that the region urgently needs. Each round of funding has deepened our impact, enabling us to deliver tangible results for millions across East Africa,” he said.

Speaking during the ceremony, OPEC Fund President Dr. Abdulhamid Alkhalifa said the partnership reflects the Fund’s dedication to sustainable development outcomes.

“Our partnership with EADB exemplifies our commitment to working with regional financial institutions to achieve sustainable development outcomes. By supporting SMEs and infrastructure in East Africa, we are directly investing in the region’s economic resilience and long-term prosperity. We are proud to deepen this partnership and mobilize additional resources that will drive impactful change,” he said.

The collaboration between EADB and the OPEC Fund dates back to 2002, when a Sh1.3 billion facility was signed to support sectors including education, tourism, and transport.

This was followed by a Sh2 billion facility in 2014 aimed at strengthening SMEs in housing and hospitality, and a further Sh2.6 billion in 2020 to back agro-processing and infrastructure.

EADB stated that this latest financing will be directed towards on-lending to SMEs and supporting transformative infrastructure projects, in line with its mandate to promote sustainable economic and social development.

Mono reaffirmed the bank’s commitment to the partnership, noting that “EADB remains strongly committed to deepening our collaboration with the OPEC Fund. This partnership continues to be a critical enabler in our mission to finance inclusive development and regional prosperity.”

The bank expects that both the loan and the additional syndicated funds will significantly bolster economic growth, job creation, and resilience throughout the region.