East African Business Week (Kampala)
Shadrack Kavilu
30 July 2007
Nairobi — The East African Development Bank (EADB) has opened talks with Rwanda and Burundi in a move aimed at wooing them to join the EADB as member states.
Though the two countries have not made any official application seeking to be incorporated as member states, the bank is currently studying provisions that would see these states incorporated as members.
Making the announcement, the chairman of the EADB governing council, Dr. Ezra Suruma who is also Uganda's minister for finance, planning and economic development said that capitalisation of the bank had significantly increased that there was need to, through overtures to Rwanda and Burundi to join as members.
"We have reviewed the progress in operation and profitability and we are opening our membership reach by inviting our brothers Rwanda and Burundi to join us," he said.
Dr. Suruma who was speaking at a Nairobi hotel last week during the closure of a two day EADB general council meeting hinted that the bank was studying the principle and provision of the charter which will be provided to the new members as basis to allow them to join.
The meeting was attended by Kenya's minister for finance Mr. Amos Kimunya, Tanzania's deputy minister for finance Mr. Abdisalaam Khatiba and EADB's director general Mr. Godfrey Tumusiime.
"We are following the procedure in the EAC and the charter of the bank to include these two countries as members," said Dr. Suruma.
At the same time the bank approved US$30 million (Ksh2.01billion) for the funding of Small and Medium Enterprises (SMEs) in venture capital for the promotion of SMEs within the East African Community (EAC).
He said the significant capitalisation of the bank has made it possible to venture into other income generating activities such as housing and construction which will start by the end of year.
During last years governing council meeting in November, the council resolved that member states contribute some money to kick start the establishment of a Venture Capital fund.
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