During its governing council meeting in Kampala, Uganda, the East African Development Bank announced a USD 13 million fund dedicated to supporting youth- and women-led businesses across the region—a bold signal that East Africa is ready to unlock the entrepreneurial potential of groups long locked out of mainstream finance.
The initiative arrives at a critical moment. Across East Africa, women and young people remain disproportionately affected by unemployment, income inequality, and the stubborn barriers that keep small entrepreneurs from accessing affordable credit. Many youth and women founders find themselves blocked by strict collateral requirements and weak investment ecosystems, unable to expand their enterprises even when the business logic is sound. Small and medium-sized enterprises are the backbone of the region's economy, generating crucial employment and household income, yet the very people best positioned to grow them struggle to find the capital to do so.
The fund reflects EADB's recognition that this gap must be closed—not just for compassionate reasons, but because it's essential for economic growth itself. Financing will be channeled through the Bank's partner financial institutions, with most resources drawn directly from EADB's own profits. Management has also been tasked with mobilizing additional resources from development partners and international financiers to ensure long-term sustainability and broader regional reach across member states.
The timing reveals EADB's strengthening capacity to lead this work. For the financial year ending December 2025, the Bank recorded a 51 percent rise in profit before tax to USD 16.93 million, up from USD 11.20 million the previous year. Loan disbursements surged by 140 percent while outstanding loans grew by 52 percent—figures that signal stronger operations, improved portfolio management, and growing regional confidence in the institution's financing model. These results demonstrate EADB's ability to mobilize resources and deliver innovative solutions across member states, according to Uganda's Minister of Finance Matia Kasaija, who chairs the outgoing Governing Council.
The announcement came alongside significant leadership changes. Rwanda's Finance and Economic Planning Minister Yusuf Murangwa was confirmed as the new Chairperson of the Governing Council, while Uganda's Permanent Secretary Ramathan Ggoobi was appointed Chairperson of the Board of Directors for a two-year term. The meeting brought together senior officials from across the region—Kenya's Cabinet Secretary John Mbadi, Tanzania's Finance Minister Khamis Mussa Omar, and others—underscoring the fund's pan-regional importance.
Development experts increasingly stress that empowering women and youth is essential for accelerating economic growth and reducing poverty across Africa. Women drive agriculture, trade, manufacturing, and informal business; young people represent the majority of East Africa's population. Yet both groups face systemic barriers to mainstream financial services. Targeted financing for women and youth entrepreneurs could catalyze job creation, boost household incomes, support local industries, and reduce dependence on public-sector employment. Investment in women-owned businesses carries additional multiplier effects: women typically reinvest earnings into their households and communities, improving family welfare, education, and broader development outcomes.
EADB, established in 1967 under the Treaty for East African Cooperation, has positioned this fund as part of its broader 2024–2028 Strategic Plan focused on sustainable development, innovation, and socio-economic transformation. The initiative signals that the institution is ready to turn financial recovery into regional opportunity.