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South Africa,Tanzania : PTA BANK approves US$138m in grants to TANZANIA

September 2, 2014

The Eastern and Southern African Trade and Development Bank (PTA Bank) recently has made an announcement on its offering of overall funding of $138 million for three projects and three syndicated credit facilities in Tanzania.

Of the three projects and infrastructure finance deals, Kilwa Energy was given $50 million, while the food and packaging firm - 21st Century received $20 million and $3 million went to Sea Rock.

The PTA Bank has disclosed that it has provided syndicated loan of $20 million to Tanzania Electric Supply Company (Tanesco), while $25 million and $20 million in syndicated credit facilities were respectively delivered to the Government and Tanzania Ports Authority.

PTA Bank, a multilateral, treat-based financial establishment, enjoys preferred creditor status, immunities and privileges.

Addressing the gathering at the East African Business meeting in Dar es Salaam last week, the President and Chief Executive of PTA Bank Admassu Tadesse has reiterated their pledge to speed up development and expand local as well as regional financial markets.

He has stressed that the PTA Bank is dedicated to encourage and drive development of both private and public sectors via offering of financing across trade, project and infrastructure areas.

Regarding the agricultural business sector, PTA offers funds across soft commodities like tobacco, sugar and cotton, with plans to provide financing for agricultural inputs like fertilizer. Tadesse stated, "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 has further said that the PTA Bank, with robust investors support, has witnessed a balanced growth of 39% per annum over the past five-year period.

The authorized capital of the bank has grown to $3 billion in last year, and it is expected that the company will sustain this trend in view of capacity growth rate of 10% to 20%.

The PTA Bank boss noted, "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 Finance Minister - Mwigulu Nchemba has emphasized that the private sector has a crucial part to play to develop and reinforce the economy, while a good number of nations have shifted to the private sector-led economy from economy based on the public sector structure.

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

PTA Bank s investors base covers 18 regional member countries throughout the COMESA, EAC and nearly all of the IGAD and the IOC nations.

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Source: TendersInfo (India)

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