EADB Board of Directors and Governing Council members pose for a group photo.
KAMPALA — The East African Development Bank (EADB) has unveiled a USD 13 million facility dedicated to youth and women-led SMEs.
By providing affordable capital through regional financial partners, the fund aims to stimulate growth in high-impact sectors like agribusiness, manufacturing, and green energy.
The move comes as Rwanda’s Minister of Finance and Economic Planning, Yusuf Murangwa, takes the helm as Chairperson of the EADB Governing Council.
Leaders emphasized that the fund is a strategic response to the perennial challenge of credit accessibility that has long hindered young and female entrepreneurs within the East African Community.
A Boost for Rwanda’s Young Entrepreneurs
(L-R) Amb. Khamis Mussa Omar, Tanzania’s Minister of Finance, John Mbadi, Kenya’s Cabinet Secretary for the National Treasury and Economic Planning and Yusuf Murangwa, Rwanda’s Minister of Finance and Economic Planning.
The new fund arrives at a critical moment for Rwanda, where entrepreneurship has increasingly become central to efforts aimed at tackling unemployment and driving economic growth.
Although Rwanda has earned international recognition for creating a business-friendly environment, many young entrepreneurs and women-owned businesses still face major challenges accessing affordable financing.
Most small businesses operate with limited collateral, making it difficult to qualify for traditional bank loans even when their enterprises show strong growth potential.
EADB says the fund will support businesses through partner financial institutions across member states, targeting sectors such as agribusiness, manufacturing, transport, clean energy and technology.
Outgoing Governing Council Chairperson Matia Kasaija said the initiative reflects the Bank’s recognition of the role women and youth play in transforming East Africa’s economy.
“We recognise that youth and women are critical drivers of economic growth and innovation across East Africa,” Kasaija said.
“The establishment of this Fund is a strategic step towards scaling enterprises led by these groups through prudent and targeted financing that will be channeled through EADB’s partner financial institutions.”
He added that the fund will initially be financed from the Bank’s profits, with additional resources expected from development partners to expand its long-term impact.
Strong Financial Growth
Outgoing EADB Board Chairperson, Dr. Natu Mwamba (L), hands over to the incoming Board Chairperson, Dr. Ramathan Ggoobi.
The fund’s launch coincides with a period of robust financial health for the EADB. The regional lender reported a 51% surge in profitability for the year ending December 2025, with pre-tax profits climbing to USD 16.93 million, up from USD 11.20 million the previous year. This growth was bolstered by a 140% increase in loan disbursements and a 52% rise in outstanding loans, signaling a significant expansion of credit across the region.
Bank officials attributed this record performance to optimized resource mobilization and strategic investments within member states. For Rwanda, the appointment of Yusuf Murangwa as Chair of the Governing Council positions Kigali at the heart of East Africa’s development finance landscape at a critical juncture for regional trade.
Ultimately, the impact of this fund will be measured by its “last-mile” success: how effectively it reaches the entrepreneurs traditionally excluded from conventional banking. For young innovators and women-led enterprises, the move signals a vital shift in recognizing them as the primary engines of East Africa’s economic future.
