The European Investment Bank (EIB) and the Eastern and Southern African Trade and Development Bank, or the PTA Bank on Tuesday launched a 160 million-euro lending program to support investment across eastern and southern Africa.
Under the deal inked in Kenya's capital Nairobi, agribusiness, energy, manufacturing and service sector industries will access a seven-year loan in local currency, or a 15-year loan in US dollars or euros from PTA Bank.
EIB Vice-President Pim Van Ballekom said the new program reflects a shared commitment to support private sector in Africa. "The new lending program is the largest ever engagement to support business investment in Africa by the EIB. This will help firms in 12 countries to create new jobs and explore new business opportunities in key sectors," Ballekom said, adding that it will support investment by larger companies for the first time.
The program is being managed in the region by the PTA Bank.
"We are delighted to join forces with the EIB to give a much needed boost to increased investment in the real economies of eastern and southern Africa, which is key to job creation and economic transformation. The program is a strong addition to other lending programs we have launched with other funding partners," said PTA President Admassu Tadesse.
EIB is the world's largest multilateral finance institution. Last year, it provided 1.1 billion euros for investment in sub- Saharan Africa.