The African Development Bank (ADB) and the African Development Fund (ADF) have approved a loan of US$30mn and a grant of UA0.68mn* equivalent to US$0.98mn to finance the Eastern and Southern African Trade and Development Bank (PTA Bank) Support Project.

The project’s objective is to support stronger economic growth and integration within the member states of the PTA Bank by facilitating export-oriented investments by private enterprises especially the small and medium-scale enterprises.

The line of credit is intended to provide medium and long-term resources so that the PTA Bank can finance viable projects, expand and strengthen its operations and enhance its business profile. It will finance sub-projects in the productive sectors in industry, agro-industry, floriculture, tourism and mining. The technical assistance will help to strengthen the bank so that it could better contribute to regional integration within the Common Market for Eastern and Southern Africa (Comesa) area and to ensure that the benefits of its restructuring are sustained.

It consists of four main components: a) risk management; b) environment impact; c) corporate governance; and d) operations enhancement.

The project will facilitate investments and business expansion in the sub-region and thereby contribute to poverty reduction through employment generation and increased rural productivity

The PTA bank was established in November 1985 and is the financial arm of Comesa whose membership is open to non-Comesa states and other institutional shareholders. The PTA membership comprises 17 member states, 15 of which are Comesa members: Burundi, China, Comoros, Djibouti, Egypt, Eritrea, Ethiopia, Kenya, Malawi, Mauritius, Rwanda, Somalia, Sudan, Tanzania, Uganda, Zambia, Zimbabwe. China is the first non-regional member state to join the PTA in 2000. ADB is the only institutional shareholder.