EADB ranked second best development bank in Africa

 The report says central banks have to control growth in credit to curb inflation.

By Martin Luther Oketch

East African Development Bank has been ranked the second best development bank in
Africa by Association of African Development Finance Institutions (AADFI).

The Kampala-based development bank scored 93 per cent with Credit Agricole du Maroc Credit, which placed them second best behind African Export and Import Bank of Egypt with 94 per cent. PTA Bank came 13th at 84 per cent.

The announcement was made at the just concluded AADFI CEOs’ forum in Mombasa, Kenya, which was attended by leading development bankers from Africa.

19 development banks from the continent participated in the review, which seeks to improve the effectiveness of development banks in service delivery and benchmarking their standards with similar institutions outside Africa.

Commenting on the ranking, EADB Director General Vivienne Yeda said the top ranking was a result of the reforms the bank has undertaken to enhance its efficiency and strengthen its creditworthiness.

“We have invested heavily in risk management and management information systems and it is gratifying this has now started bearing fruit,” said Ms. Yeda.

She added: “Our strengthened internal control framework and recognition by leading credit rating agencies will enhance our capacity to mobilise resources for the region and expand our business portfolio.”

The review focused on governance and management, financial prudential and operational standards. Specific parameters included management independence, commercial principles, accounting and auditing and management information systems and procedures.

Others were corporate citizen governance standards, capital adequacy, profitability, asset quality, risk management and lending policies