EADB moves out of losses territory

By JACKSON OKOTH

The East African Development Bank (EADB) has reported a net profit of Sh140.4 million ($1.85 million) for the year ended December 31. This is compared to a loss in net profit of Sh678.6 million ($8.7 million) in 2008.

In a statement, the bank attributes this turn-around to a pro-active stance on distressed projects, including restructuring and realisation of arrears resulting in an improved financial performance.

The bank has been reporting a negative position for the last two years.

EADB has also intensified its normal debt collection as well as recovery from previously written off projects.

At the height of the global financial crisis, there was lack of effective demand by potential projects. This forced the bank to change focus to project supervision and debt recovery.

DEEPENING INTEGRATION

Expectations remain high that EADB can deepen the East African Community integration process by supporting infrastructural and industrial investments in the region.

A plan by member states to increase the bank’s financial strength under a $ 90 million capital subscription programme, is expected to sustained EADB’s lifespan.

The African Development Bank, a key shareholder in EADB, has pledged to provide financial and technical support to ensure that the bank’s ability and capacity to accomplish its mandate is not impaired.

The Bank is committed to increasing its role in financing projects and programmes in infrastructure, agriculture and social sectors.

It 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.