The African Development Bank (AfDB) and the East African Business Council (EABC) have signed a $1 million grant agreement to promote sustainable industrialisation and strengthen manufacturing value chains across East Africa.
The grant will fund initiatives focused on technical assistance, research, policy dialogue, and capacity building aimed at improving competitiveness in the edible oil, leather, and textile sectors—industries identified as priorities under the East African Community’s (EAC) Industrialisation Policy and Strategy (2012-2032).
“We are thrilled to partner with AfDB on this vital project that paves the way for stronger regional value chains, greater market access, and inclusive growth that benefits businesses and communities across East Africa,” said Adrian Njau, Acting Executive Director of the EABC, during the signing ceremony.
The EAC has set an ambitious target to increase the manufacturing sector’s contribution to GDP from the current average of 10% to 25% by 2032. The project also aims to help the private sector capitalize on opportunities presented by the EAC Customs Union, Common Market Protocol, and the African Continental Free Trade Area (AfCFTA), which grants access to a 1.3 billion-strong market.
Key components of the programme include:
- Enhancing public-private policy dialogue to tackle trade and regulatory barriers.
- Promoting environmental, social, and governance (ESG) standards.
- Ensuring gender inclusion and active participation of SMEs, women, and youth in industrial growth.
The EABC projects that over 1,500 industries, including small and medium enterprises, will directly benefit from this initiative.
This partnership aligns with AfDB’s Ten-Year Strategy (2024-2033), which prioritizes industrialization and regional integration under the “Integrate Africa” agenda—one of the Bank’s High 5 development priorities. It also reinforces EABC’s mission to foster a business-friendly environment and advance sustainable, private sector-led growth in East Africa.
