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Arusha, Tanzania — The African Development Bank (AfDB) and the East African Business Council (EABC) have signed a $1 million grant agreement aimed at promoting sustainable industrialisation and strengthening manufacturing value chains across East Africa.
The deal, announced on July 1, will support technical assistance, research, policy dialogue, and capacity building efforts to improve competitiveness in the region’s edible oil, leather, and textile sectors–identified as priority industries 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 aims to increase the manufacturing sector’s contribution to GDP from the current average of 10% to at least 25% by 2032.
The project will also support the private sector in taking advantage of trade and investment opportunities offered by the EAC Customs Union, Common Market Protocol, and the African Continental Free Trade Area (AfCFTA), which grants access to a market of 1.3 billion people.
Efforts will focus on enhancing public-private policy dialogue and evidence-based advocacy to address trade and regulatory barriers in the targeted value chains. The initiative places a strong emphasis on environmental, social and governance (ESG) standards and gender inclusion to ensure that small and medium-sized enterprises (SMEs), women, and youth are fully integrated into the region’s industrial growth.
According to EABC, more than 1,500 industries, including SMEs, are expected to directly benefit from the programme.
The initiative aligns with AfDB’s Ten-Year Strategy (2024-2033), which seeks to scale up industrialisation efforts across Africa, and supports its “Integrate Africa” agenda under the Bank’s High 5 development priorities. It also reflects EABC’s mission to promote a business-friendly environment and sustainable private sector-led growth in the region.
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