AATIF and PTA BANK sign USD30 million facility

The Africa Agriculture and Trade Investment Fund (AATIF) and the PTA Bank, a pan African financial institution, have signed a US$30 million facility agreement that will go towards financing the agricultural sector on the continent.
The facility agreement was signed by Mr. Thomas Duve, chairman of the board of the AATIF and Mr. Admassu Tadesse, the President of the PTA Bank during a ceremony held in South Africa.

“We are really delighted to be partnering with AATIF in supporting the agricultural sector because of the importance the sector plays in the economies of our member states. We have been an active financier of agriculture projects and with this facility, we shall enhance our support to this critical sector,” said Mr. Tadesse. He added that the facility would support growth of a sector that contributes up to 40 percent of the GDP of many African countries as a major employer and contributor to the export earnings of these countries. “Agriculture has been a major growth sector over the past decade and plays a key role in mitigating rural-urban migration, “said Mr. Tadesse. The Bank, he said, would continue supporting sectors that have a multiplier effect on the economy, and special emphasis would be paid on value addition activities.

“AATIF’s mission is to develop and promote growth initiatives targeted towards the agricultural sector directly or indirectly, e.g. via on-lending programmes with Financial Institutions, for the benefit of the poor. PTA is a true landmark investment for the AATIF, as it is AATIF’s first of this kind. We are proud and excited to further chaperon PTA in its endeavors to seize the potential of the African agricultural sector, “ said Mr. Duve.

The PTA Bank is pan African financial institution owned by eighteen African member states, the People’s Republic of China and the African Development Bank. The Bank has achieved a number of milestones in the recent past, among them the raising of a syndicated loan of US$150 million from the European market as well as issuance of a USD300 million bond, both of which were over-subscribed.

Currently, the Bank’s balance sheet stands at US$ 1.4 billion while the Bank has been growing at an average of 30 percent per year over the last decade.