Role of East African Development bank in promoting trade within the East African Community
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While many developing countries have increasingly left commercial banking to the private sector, they have retained ownership of special-purpose banks, such as development and industrial banking institutions, and trade-related financial institutions such as export credit insurance and guarantee companies, or export-import banks. While recent trends have shown a willingness to make these organizations more independent (self-financed), most countries have been reluctant to privatize them as they provide Governments with some tools to address perceived market failures in the financial and trading sectors. This study aims at determining the role of East African Development Bank in promoting trade within the East African Community. The research entailed the use of a descriptive research. The population of this study was all the strategic partners working with EADB in the promotion of Trade within the East African Community. The researcher used both primary and secondary data. Primary data was collected using a questionnaire. Data for this study was both quantitative and qualitative hence both descriptive and content analysis techniques were employed. From the findings the study concludes that the Bank plays a key role in the provision of finance to businessmen and enterprises wishing to expand their business across East Africa. The Bank also promoted trade within EAC by fostering better working relationship among EAC governments. The bank also served as a mediator in case a conflict arose among the EAC member states thus nurturing a harmonious co-existence which promoted trade within EAC. The bank also promoted trade within EAC by offering advice and capacity building to entrepreneurs and businessmen. This study therefore recommends that the bank be strengthened and supported by , member states to ensure its continued support to trade within EAC which improves the livelihood of the citizens of the member states besides creating a harmonious co- existence. The study recommends that the Bank extends its services and lowers the minimum investment thresholds. This will extend the number of SMEs enjoying the loan and financial advice from the bank to help them grow into big businesses. The study recommends that further studies should be done on the role of EADB in promoting trade within EAC from the loan applicants' perspective to provide a balanced role of EAC in promoting trade within EAC.