EADB launches USD 13M fund against EAC unemployment

KAMPALA: The East African Development Bank has launched a USD 13 million fund to support youth- and women-led businesses across East Africa, in a major push to promote inclusive economic growth and reduce poverty in the region.

Announced during the Bank’s Governing Council meeting in Kampala, Uganda, the initiative aims to expand access to financing for entrepreneurs who often struggle to secure affordable credit and investment. The fund forms part of EADB’s 2024–2028 Strategic Plan focused on sustainable development, innovation, and socio-economic transformation within member states.

The initiative comes at a time when many African economies continue to face unemployment, income inequality, and limited financial inclusion. Women and young people, who make up a large share of East Africa’s workforce and entrepreneurial base, remain among the groups most affected by barriers to finance.

Small and medium-sized enterprises (SMEs) are central to the region’s economy, providing significant employment and household income. However, many youth and women entrepreneurs face challenges such as strict collateral requirements and weak investment ecosystems, limiting business expansion. EADB says the new fund is designed to bridge this gap by providing targeted financing capable of turning small enterprises into sustainable drivers of economic growth.

The announcement followed one of EADB’s strongest financial performances in recent years. For the financial year ending December 2025, the Bank recorded a 51 percent rise in profit before tax to USD 16.93 million, up from USD 11.20 million the previous year. Loan disbursements increased by 140 percent, while outstanding loans grew by 52 percent, reflecting stronger operations, improved portfolio management, and growing confidence in the institution’s financing model.

Uganda’s Minister of Finance, Planning and Economic Development and outgoing Governing Council Chairperson, Matia Kasaija, said the results demonstrate EADB’s stronger ability to mobilize resources and deliver innovative financing solutions across member states.

Kasaija noted that the Bank had supported a wider range of projects across key sectors and remained committed to implementing its five-year strategic plan while expanding its investment portfolio and regional development impact.

Development experts have increasingly stressed that empowering women and youth is essential for accelerating economic growth and reducing poverty in Africa. While women play a major role in agriculture, trade, manufacturing, and informal business, and young people represent the majority of East Africa’s population, both groups continue to face systemic barriers to accessing mainstream financial services.

ALSO READ: Zaipuna to address global banking forum

EADB’s new fund is therefore being viewed not only as a financing initiative, but also as a broader commitment to inclusive development, job creation, and economic resilience as governments seek long-term solutions to unemployment and rising living costs.

The high-level meeting in Kampala brought together senior officials and Board members from across the region, including Rwanda’s Minister of Finance and Economic Planning Yusuf Murangwa, Kenya’s Cabinet Secretary for the National Treasury and Economic Planning John Mbadi, and Tanzania’s Minister of Finance Khamis Mussa Omar.

The meeting also marked leadership changes within the institution. Yusuf Murangwa was confirmed as the new Chairperson of the Governing Council, succeeding Matia Kasaija after a period of financial recovery and growth at the Bank.

Meanwhile, Uganda’s Permanent Secretary in the Ministry of Finance, Planning and Economic Development, Ramathan Ggoobi, was appointed Chairperson of the Board of Directors for a two-year term, replacing Tanzania’s Permanent Secretary in the Ministry of Finance Natu Mwamba.

Kasaija said the fund reflects EADB’s recognition of the critical role women and youth play in entrepreneurship, innovation, and economic growth across East Africa. He added that financing would be channeled through the Bank’s partner financial institutions to help scale businesses led by these groups.

According to EADB leadership, most of the fund will be financed directly from the Bank’s profits, while management has also been tasked with mobilizing additional resources from development partners and international financiers to ensure long-term sustainability and broader regional reach.

Analysts say targeted financing for women and youth could help address key development challenges by creating jobs, increasing household incomes, supporting local industries, and reducing dependence on public-sector employment. Investment in women-owned businesses may also improve family welfare, education, and community development, as women often reinvest earnings into their households and communities.

Established in 1967 under the Treaty for East African Cooperation, EADB was created to provide financial and technical support for projects that advance the region’s socio-economic development. The Bank was re-established in 1980 under a new Charter that expanded its mandate to include industrialization, infrastructure, trade, and regional integration.

Today, EADB is jointly owned by the governments of Kenya, Uganda, Tanzania, and Rwanda, alongside development finance institutions and commercial banks. Over the years, it has strengthened partnerships with East African Community institutions and development partners, positioning itself as a key player in regional financing and economic transformation.

The launch of the USD 13 million youth and women empowerment fund signals East Africa’s growing focus on entrepreneurship, innovation, and financial inclusion as essential tools in the fight against poverty and underdevelopment.