Kampala — The East African Development Bank (EADB) has launched a $13mn fund targeting youth- and women-led enterprises, as the regional lender moves to deepen access to development finance across East Africa.
The facility was unveiled during the bank's Governing Council meeting in Kampala on May 8, where finance ministers from member states reviewed the institution's performance and strategic direction under its 2024-2028 plan.
The fund will channel financing to small and medium-sized enterprises owned or led by young people and women, with lending expected to be disbursed through partner financial institutions across the region. EADB said a significant share of the capital will be drawn from retained earnings, alongside plans to mobilise additional resources from development partners.
The announcement coincided with a strong improvement in the bank's financial performance. Profit before tax rose 51 per cent to $16.93mn for the year ended December 2025, compared with $11.20mn a year earlier.
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Lending activity expanded sharply over the period, with disbursements up 140 per cent and outstanding loans increasing by 52 per cent. The bank attributed the growth to improved operational efficiency and stronger portfolio performance.
The outgoing Governing Council chairperson, Matia Kasaija, said the results reflected improved capital mobilisation and a broader pipeline of development projects across member states.
"This strong performance is a testament to EADB's enhanced capacity to mobilise resources and deploy innovative financing solutions," he said. "We supported a more diverse range of projects across key sectors in our member states and remain committed to delivering on our five-year strategic plan."
The meeting brought together senior officials including Yusuf Murangwa, John Mbadi, and Khamis Mussa Omar, alongside members of the bank's board.
Uganda's Permanent Secretary at the Ministry of Finance, Planning and Economic Development, Ramathan Ggoobi, was appointed chair of the EADB board of directors for a two-year term, replacing Tanzania's Dr Natu Mwamba.
The leadership transition comes as the bank seeks to reinforce its role as a regional development financier at a time when governments face tightening fiscal space and rising demand for concessional funding.
Kasaija said the new fund was designed to address persistent financing constraints faced by youth and women entrepreneurs, who remain largely underserved by formal credit markets despite their growing role in job creation and innovation.
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"Youth and women are critical drivers of economic growth and innovation across East Africa," he said. "This is a strategic step towards scaling enterprises led by these groups through targeted financing channelled via partner institutions."
EADB said it would also seek to crowd in additional capital from development partners to expand the scale and sustainability of the facility, as regional economies continue to grapple with the challenge of translating growth into employment opportunities.
