EADB ANNOUNCES RESULTS FOR 2009

COMMENTS ON PERFORMANCE

• The East African Development Bank has reported a net profit of USD 1.85 million for the year 2009.
• The Bank took a proactive stance on distressed projects, including restructuring and realisation of arrears resulting in an improved financial performance in contrast to the negative position reported in the previous two years.

·         The positive results were due to normal debt collection and recovery from previously written off projects. Effective demand by potential projects was generally constrained by the overall economic environment hence the Bank’s operations in 2009 were characterised by stepped up project supervision and debt recovery.

• The year under review was characterized by increased expectations by stakeholders on the Bank’s contribution towards the deepening of the East African regional integration process. In this regard, the Bank’s Governing Council has expressed its support to the Bank’s plans to bolster infrastructural and industrial investments in the region.

FUTURE PROSPECTS

• With the dynamic streamlining of its operations, the Bank is braced for the challenge of sustaining the positive financial performance.
• The Bank is committed to increasing its role in financing projects and programmes in infrastructure, agriculture and social sectors. In particular, the Bank will continue to support those segments of infrastructure that are amenable to private sector participation, while at the same time providing support to the public sector in the development of such infrastructure projects that are important for the economic and social development of the Member States.

·         The Member States are committed to supporting the Bank’s pivotal role in spearheading the socioeconomic development of the EAC partner states. Member States will make further contributions under a US$ 90M equity contribution program that commenced in 2009 in a timely manner.

·         The African Development Bank, a key shareholder, has pledged to provide financial and technical support and other assistance as may be necessary to ensure that the Bank’s ability and capacity to accomplish its mandate is not impaired.

 ANNUAL GENERAL MEETING (AGM)

Annual reports and audited financial statements will be posted to the shareholders on or before 31^st July 2010 together with the notice of the AGM.