Kenya has raised its stake in the Trade and Development Bank (TDB) by $100 million and injected an additional $50 million into the African Export–Import Bank (Afreximbank), President William Ruto said on Thursday, reaffirming the country’s commitment to strengthening African financial institutions.

President Ruto, who on Thursday took over as chairperson of the Common Market for Eastern and Southern Africa (Comesa) from Burundi’s Évariste Ndayishimiye, said that African-led financial institutions are proving to be the continent’s true partners in progress and called for their support.“The Trade and Development Bank was established under the Preferential Trade Area (PTA), the precursor to Comesa, and has since evolved into the financial arm of our common market, driving regional trade, investment, and sustainable development. That is why, here in Kenya, we are backing our words with action. Having already committed $50 million as share capital to Afreximbank, we are now making an additional $100 million investment to enhance our shareholding in TDB,” he told the Comesa Heads of State Summit in Nairobi.

Established in 1985, TDB is an investment-grade African regional development finance group, with the mandate to finance and foster trade, regional economic integration, and sustainable development, with an asset base of $10 billion.

It provides funding to both sovereigns and corporates, covering all sectors of the economy.

Kenya’s enhanced shareholding in the lender implies that Nairobi can now access long-term financing to be repaid in up to 25 years at interest rates as low as two percent.

Presidents Évariste Ndayishimiye of Burundi, Azali Assoumani (Comoros), Emmerson Mnangagwa (Zimbabwe), and Prime Ministers Ahmed Abiy (Ethiopia), Russell Mmiso Dlamini (Eswatini), and Mustafa Madbouly (Egypt) were present.

Also present were African Union Commission chair Mahmoud Youssouf, Comesa Secretary-General Chileshe Mpundu Kapwepwe, and Secretary-General of the African Continental Free Trade Area Wamkele Mene.

© Copyright 2022 Nation Media Group. All Rights Reserved. Provided by SyndiGate Media Inc. (Syndigate.info).