PTA BANK GIVES TANZANIA $138 MILLION

Dar es Salaam — The Eastern and Southern African Trade and Development Bank (PTA Bank) has approved grants totaling $138 million for three projects and three syndicated loans in Tanzania.

The projects and infrastructure finance transactions are Kilwa Energy which received $50 million, 21st Century, a food and packaging firm ($20 million) and Sea Rock ($3 million).

Syndicated facilities are to be given to Tanzania Electric Supply Company (Tanesco) which received $20 million while the government will get $25 million and Tanzania Ports Authority another $20 million.

Speaking to East African Business Week in Dar es Salaam last week, PTA Bank President and Chief Executive, Admassu Tadesse repeated the PTA commitment of accelerating development and deepening domestic and regional financial markets..

He said the PTA is determined to promote both private sector and government development through trade, project and infrastructure financing.

In the agribusiness sector, PTA is financing transactions involving soft commodities such as tobacco, sugar and cotton. The bank is also looking at financing agricultural inputs such as fertilizer.

"The bank has approved close to $10 billion in almost 30 years for financing of trade and socio-economic investment activities in the region," he said.

He said the bank enjoys strong support from its shareholders and has over the last five years attained an annual balanced growth rate of 39%.

The bank's authorized capital has increased up to $3 billion in year 2013, and it will continue to grow and scale up due to 10% to 20% capacity growing rate.

Tadesse said, "Our product and service offerings are primarily trade, project and corporate finance and to a lesser extent, equity finance and guarantees with tenures ranging from short to long term."

The Deputy Minister for Finance, Mwigulu Nchemba, requested that the private sector plays its vital role towards economic development.

Nchemba said most of countries have moved from public sector led economy to the private sector driven market economy.

"The private sector continues to assume an increasingly larger and crucial role in national growth, development and poverty reduction efforts," the Minister said.

PTA Bank is a multilateral, treat-based financial institution with preferred creditor status, immunities and privileges, its shareholders base includes 18 regional member states across COMESA, EAC and most IGAD and the IOC countries.

East African Business Week