The East African Development Bank (EADB) has launched $13 million dedicated fund to provide inclusive financing for youth and women-led enterprises across the region.
The initiative seeks to bridge a multi-billion dollar credit gap that currently stifles East Africa’s most active entrepreneurs.
Bank leaders announced the fund during a Governing Council meeting held in Kampala on May 8, 2026. This project forms a core part of the EADB 2024–2028 Strategic Plan. It specifically targets demographics that commercial lenders often underserve due to high perceived risks.
Uganda currently faces a massive $ 8.8 billion financing gap despite being a global leader in business startups. Reports indicate that 70% of MSMEs in the country have unmet credit needs. Commercial banks remain heavily reliant on fixed assets for collateral. Approximately 39% of formal loans require land titles, which many women and youth do not possess.
Benard Mono, the Acting Director General of EADB, stated that the fund aims to help those struggling to find capital. The bank will convert the funds into local currencies to improve accessibility. Partner financial institutions will distribute the money to ensure it reaches rural and underserved entrepreneurs.
“We agreed that part of our profits that we made in this year and part of other funds that we have, we dedicate them towards starting a fund that will specifically lend to youth and women in the region at a very affordable cost through the partner financial institutions,” Mono remarked in an interview.
The Global Entrepreneurship Monitor ranks Uganda second in the world for Total Entrepreneurial Activity. This high ranking suggests that Ugandan youth possess the competence to grow world-class businesses. However, 30% of Ugandan SMEs currently fail before reaching their third anniversary. EADB aims to help these firms scale beyond the subsistence phase into manufacturing and value-addition.
“We are looking forward to partnering with them to support them to move forward in creating employment, promoting import substitution, and also promoting our exports’ value-added products from our region,” Mono added.
The Governing Council meeting drew high-profile attendance from finance ministers across East Africa. Hon. Matia Kasaija of Uganda, Hon. Yusuf Murangwa of Rwanda, Hon. FCPA John Mbadi Ng’ongo of Kenya, and Hon. Amb. Khamis Mussa Omar of Tanzania all participated in the launch. Their presence underscores a regional commitment to tackling unemployment through direct entrepreneurial support.
During the same meeting, leadership transitions were confirmed in line with the Bank’s Charter. Rwanda’s Minister of Finance and Economic Planning, Yusuf Murangwa, was appointed Chairperson of the Governing Council, replacing Uganda’s Matia Kasaija.
Uganda’s Permanent Secretary at the Ministry of Finance, Planning and Economic Development, Dr Ramathan Ggoobi, was also appointed Chairperson of the Board of Directors for a two-year term, succeeding Tanzania’s Dr Natu Mwamba.
The East African Development Bank (EADB) is a premier regional development finance institution established in 1967 to promote socio-economic development and regional integration in East Africa. Owned by Kenya, Tanzania, Uganda, and Rwanda, it provides long-term financing for infrastructure, industry, and small enterprises
EADB Provides loans and financial support for projects aimed at regional growth with major focus on Infrastructure, industrialization, trade, health, education, and agriculture.
