Germany injects over 120bn/- into EAC

ARUSHA: THE German government has committed 39.8 million Euros (121.8bn/-) in grants to the East African Community (EAC) to support regional integration, trade and economic development, including improving access to finance for micro, small and mediumsized enterprises (MSMEs).

The funding was announced on Tuesday at the EAC Headquarters in Arusha during a signing ceremony between the EAC Secretariat and the government of Germany, marking renewed cooperation to advance the bloc’s integration and economic development agenda.

The Head of the Central and East Africa Division at the German Federal Ministry for Economic Cooperation and Development (BMZ), Mr Joachim Schmitt, said the funds will prioritise expanding access to financial services for MSMEs through a partnership between the German development bank (KfW) and the East African Development Bank.

He noted that MSMEs account for up to 80 per cent of employment in the region and remain key drivers of innovation across manufacturing, agriculture and tourism.

“East Africa is the fastest growing region, recording a 14 per cent increase in intra-EAC trade, alongside rising trade volumes within the AfCFTA and beyond the continent. The region is also an attractive investment hub for German and European private sector players interested in trade and value chain development,” he said.

“With our cooperation, we aim to support rules-based trade integration, regional economic development and deepen private sector engagement,” he added.

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Mr Schmitt also announced that 4.8 million Euros(14.6bn/) from the package has been set aside to support the ongoing Ebola outbreak response in the region.

The funds will support preparedness, prevention and response efforts, as well as strengthen regional capacity and coordination mechanisms.

Representing the EAC Secretary General, the Deputy Secretary General in charge of Customs, Trade and Monetary Affairs, Ms Annette Ssemuwemba, commended Germany for its continued support, noting that the engagement comes at a strategic time as the Community embarks on implementing its 7th Development Strategy.

“As we roll out the 7th EAC Development Strategy, renewing our cooperation with Germany is critical. We appreciate the joint review of priorities and identification of areas of collaboration to deliver results.

This reflects the spirit of partnership and shared responsibility needed to advance our regional integration agenda,” she said.

She added that both sides agreed to prioritise advancing trade and economic integration across East Africa, backed by the 39.8 million Euro grant.