Business / Economy

Regional bank to partner with China to finance African projects

(Xinhua) Updated: 2016-03-23 10:22

NAIROBI - Regional financial institution, the Preferential Trade Area (PTA) Bank, said Tuesday it plans to partner with the Chinese Export Import Bank to finance infrastructure projects in Africa.

PTA Bank President Admassu Tadesse told Xinhua in Nairobi that the Chinese have shown commitment in helping develop the continent.

"We will partner with the Chinese Exim Bank to co-finance a number of infrastructure projects in Africa," Tadesse said on the sidelines of the 18th Africa Economic Research Consortium (AERC) Policy Seminar.

PTA bank shareholders include member states of the Common Market for Eastern and Southern Africa (COMESA). People's Bank of China owns approximately ten percent of PTA Bank's shareholding.

Tadesse said the Chinese Exim Bank will provide about 80 percent of the finance in any given project while the PTA bank will supply the remainder.

PTA will also partner with other Chinese financial institutions to undertake infrastructure projects in Africa.

Tadesse said in the past decade China has increased its engagement with the African continent.

"Chinese finance has been instrumental in funding many critical development projects that have impacted positively on the lives of Africans," he said.

He added that the Chinese partners are ideal because they will help PTA achieve its mandate. "We find Chinese financiers very disciplined and committed partners who are very predictable," he said.

Africa currently has a huge infrastructure deficit as a result of years of under investment. Tadesse said the Chinese are likely to play a key role in helping the continent bridge its infrastructure gap.

"As the Chinese economy expands, Africa is likely to benefit from Chinese funding," he added.

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