EADB GOVERNING COUNCIL APPROVES BANK’S STRATEGY ON REGIONAL INFRASTRUCTURAL AND SOCIAL DEVELOPMENT PLANS
5th May 2010, Kampala
The East African Development Bank’s Governing Council has expressed its support to the Bank’s plans to bolster infrastructural and industrial investments in the region.
The Council, which comprises of senior representatives of the Governments of Kenya, Rwanda, Tanzania and Uganda together with other shareholders of the Bank, underscored the importance to the East African Community of a strong regional bank to support integration and regional development programs.
At a meeting held in Washington DC last week, the Governing Council noted that the Bank’s improved performance in the last financial year put it in good financial stead to finance private sector projects and increase its role in financing projects and programmes in infrastructure, agriculture and social sectors.
In reference to EADB’s critical role in regional development, the Council emphasized that the Bank will support sectors that are key drivers of the regional economy yet are perceived by other financial sector players to be too risky for development. This will allow participation in regional and international trade through value addition in sectors such as agriculture, agro-processing, education, infrastructure, fisheries and telecommunication.
The meeting in Washington was called to discuss the operational strategy of the Bank in order to achieve its objectives in providing resources to finance infrastructure and social development projects. During the meeting, Member states and non-state shareholders to EADB resolved to continue supporting the Bank’s drive to become a major financial contributor to economic growth.
A policy brief released by the Bank recently states that “The EADB takes note of the decline in infrastructural and industrial investments in the region over the past two years in the face of tougher financing environment, weak demand and lower cash flows. These factors, stemming from the global financial and economic crisis, have occasioned a slow down in the implementation of ongoing projects and a number of planned investments either being postponed or cancelled.”
In this regard, EADB’s strategy towards supporting infrastructure development is two-pronged. On the one hand, the Bank will continue to support those segments of infrastructure that are amenable to private sector participation given that they can be operated on pure commercial principles. These include telecommunication, energy, and information technology. On the other hand, the Bank will endeavor to support the public sector in the development of infrastructure such as rail, road and water and sanitation projects that are important for the economic and social development of the Member States.
Economic analysts predict positive economic outlook for the region based on foreign investments and infrastructure development founded on a possible boon from the production of oil. The outlook underpins the Bank’s deliberate strategy of taking a regional orientation in its operations.
The Governing Council meeting was attended by Hon. Syda Bbumba, Uganda’s Minister of Finance, Planning and Economic Development (Chairperson to the Council), Hon. Uhuru Kenyatta, Deputy Prime Minister and Minister of Finance, Republic of Kenya, Hon. Mustafa Mkulo, Minister for Finance and Economic Affairs, United Republic of Tanzania and Hon. John Rwangombwa, Minister for Finance and Economic Planning, Republic of Rwanda. The Bank’s Board of Directors comprising of Mr. Alhajji Ramadhan Khijjah, Permanent Secretary, Ministry of Finance and Economic Affairs of the Republic of Tanzania, Mr. Joseph Kinyua, Permanent Secretary and Secretary to Treasury, Ministry of Finance, Republic of Kenya and Mr. Christopher Kassami, Permanent Secretary/Secretary to Treasury Ministry of of Finance, Planning and Economic Development, Republic of Uganda was also in attendance.
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