AfDB’s arm approves $9 million grant to boost East Africa financial integration

The Board of Directors of the African Development Fund (ADF), the concessional lending arm of the African Development Bank Group, Africa’s premier multilateral development finance institution, has approved a $9 million grant to support financial integration across East and the Horn of Africa.

The funding, sourced from the Fund’s 16th replenishment cycle, will finance the East Africa and Horn of Africa Capital Markets and Payment Systems Integration Project (EAC-CAMPSI), aimed at strengthening regional financial systems and expanding access to long-term capital.

AfD’s regional project to deepen financial markets
The East African Community (EAC) Secretariat will implement the project across nine countries: Burundi, the Democratic Republic of Congo, Ethiopia, Kenya, Rwanda, Somalia, South Sudan, Tanzania, and Uganda.

The initiative seeks to accelerate cross-border investments, improve the efficiency of financial markets, and enhance access to financial services for businesses and citizens across the region.

It will also focus on strengthening market infrastructure and payment systems, building regulatory and institutional capacity, and promoting greater participation of women and youth in financial markets.

AfDB: Strengthening infrastructure for regional trade
The AfDB project aligns with the East African Community Cross-Border Masterplan (2025–2030) and supports the broader goals of the African Continental Free Trade Area by reinforcing the financial systems required to facilitate regional trade and investment.

EAC Secretary General Stephen Patrick Mbundi highlighted the project’s strategic importance, noting that seamless capital movement will be critical to the region’s economic future.

“This project represents an important step toward a more integrated regional financial system that can mobilise investment, deepen financial markets, and create new opportunities for businesses and citizens,” Mbundi said.

AfDB: Driving economic transformation through integration
Ahmed Attout, Director for Financial Sector Development at the African Development Bank Group, described integrated financial markets as essential to Africa’s economic transformation.

He said the initiative reflects the Bank’s commitment to advancing regional integration through targeted investments that strengthen both infrastructure and regulatory frameworks.

The project is expected to enhance economic resilience by mobilising domestic capital, deepening regional markets, and supporting sustainable growth across East and the Horn of Africa.