EADB to raise Tshs. 15 billion to finance projects

By Nyasigo Kornel,

An investor forum intends to raise Tshs. 15 billion to accelerate the growth of the East African Development Bank (EADB) in Tanzania.

The declaration was made during a meeting of members of EADB and investors in Dar es salaam.
Speaking during the meeting, the EADB Director, Godfrey Tumusiime, said the funds to be raised would be invested as bonds to provide alternative investment in various economic productive sectors through capital markets.

'The bank provides advisory services to selected clients on their capital needs, often with encouragement to meet their additional financing needs through raising of equity rather than short-term debt,' Tumusiime said.

He also said EADB had provided financial support to client companies which were interested in listing on the stock exchanges.

'We encourage companies that meet respective capital markets regulators' requirements to list on the respective stock exchanges,' he said.

Tumusiime said EADB also provided financial assistance to all productive economic sectors in order to promote development of member states.

The Minister for Finance, Basil Pesambili Mramba , said East Africa needed strong institutions to propel the region forward development.

'East Africa needs a good financial institution to mobilize resources for promoting the social and economic development of the region,' said Mramba.

EADB would create employment for many Tanzanians.

In the same way the Small Industries Development Organization (SIDO) was already benefiting from the operations of the bank.
'There is time when development banks do better than commercial banks.

We need development banks because commercial banks can not finance long-term projects,' he said assuring investors that their money would be in safe hands after having invested in the EADB.

The bank was established in 1967 but its operations stopped in 1977 following the collapse of East African Community.
It was re-established under its own charter in 1980.

Impressed by the role it plays in regional integration, Mramba said he welcomed the bank to operate in Tanzania.

Nyasigo Kornel
Cell:0745551455
Email:emmakornel@yahoo.com