Financing Mechanisms for Industrialisation Programmes
To ensure availability of long-term financing for industrial development in the region, the EAC Industrialisation Policy provides the following interventions:
- Facilitating the integration of financial markets in the region, including the integration of the capital market to support mobilisation of funds for industrialisation;
- Establishing / strengthening regional industrial development banks to mobilise funds to support investment in long-term industrial development projects. The regional industrial development fund to be established will be administered by the regional bank. The fund will be capitalised through EAC Partner States contributions as well as contributions from development partners;
- Exploring the possibilities of establishing regional industrial bonds as a means of raising funds for industrialisation;
- Setting up a regional credit guarantee scheme and other innovative financial products (seed & venture capital, leasing & inventory financing) to enhance SME access to credit lending by commercial banks; and
- Increasing national and regional budgetary allocation to the industrialisation programmes and projects.