The African Development Bank (AfDB) has extended a US$20mn credit line to PTA Bank – a development bank in East and Southern Africa.

The debt is part of an overall financing package of US$70mn, with the remaining US$50mn coming in the form of equity.

PTA Bank will use the finance to on-lend to SMEs in its region, which covers Burundi, the Comoros, the Democratic Republic of Congo, Djibouti, Egypt, Eritrea, Ethiopia, Kenya, Malawi, Mauritius, Rwanda, Seychelles, Somalia, Sudan, Tanzania, Uganda, Zambia and Zimbabwe.

In particular, PTA expects to fund infrastructure projects which will generate employment in these countries. The ultimate aim is for the finance to assist with developing the trade infrastructure and member relations to the extent that a free trade area can be established.

In the past, PTA has received debt support from the European Investment Bank, Agence Française de Développement and KfW.