EADB records a $1.8m profit

After registering losses for two successive years, the East African Development Bank (EADB) reported last week a net profit of USD 1.85 million in 2009. Faustin Mbundu Kananura, one of the Bank’s board members, and the chairman of the East African Business Council (EABC), told The New Times on Friday that Rwandans are among the bank’s beneficiaries and once it makes losses, they too lose.

After registering losses for two successive years, the East African Development Bank (EADB) reported last week a net profit of USD 1.85 million in 2009.

Faustin Mbundu Kananura, one of the Bank’s board members, and the chairman of the East African Business Council (EABC), told The New Times on Friday that Rwandans are among the bank’s beneficiaries and once it makes losses, they too lose.

“We (Rwanda) have bought or put money into the EADB but it has been making losses – we are now comfortable that our money is not lost,” Kananura said, explaining that EADB’s mission involves servicing development projects in EAC member countries.

EADB is a leading development finance institution whose overriding objective is promoting development in the bloc.

“The profits are also encouraging, because it means that it (the Bank) will now be able to lend for development projects among member states including Rwanda.”

EADB’s improved performance is attributed to normal debt collection and recovery from previously written off projects.

The announcement of the improved results came after the bank’s governing council cleared it to finance sectors that are key drivers of the regional economy yet they are perceived risky, by commercial banks.

At the beginning of this month, the governing council - Finance Ministers from Kenya, Rwanda, Tanzania and Uganda, held a meeting in Washington, USA, to discuss the operational strategy of the bank in order to achieve its objectives in financing infrastructure and social development projects in the bloc.

Activities of the bank will be largely financed by capital from member states through a $90 million capital subscription programme initiated last year.

The African Development Bank, a key shareholder, has also pledged to provide financial and technical support and other assistance for the bank to accomplish its work.

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