The Eastern and Southern African Trade and Development Bank (PTA Bank) is a treaty-based regional institution, whose membership is open to member states (or their designated institutions), African institutions and non-African states (or their designated Institutions) whose eligibility is determined by the Board of Governers.
The Bank was established as an international organization on the 6th November, 1985 pursuant to the provisions of Chapter 9 of the Treaty (1981) establishing the Preferential Trade Area for the Eastern and Southern African States (PTA) which was later transformed into the Common Market for Eastern and Southern Africa (COMESA).
PTA Bank’s shareholding
The People’s Republic of China became the first non-regional sovereign state to join the membership of the Bank in 2000. The African Development Bank (ADB), Mauritian Eagle and National Pension Fund of Mauritius are the only institutional shareholder.
The Bank is now repositioned as the trade and development bank of the Tripartite Region, which cuts across South, Central, East and North Africa.
The Bank’s purpose and key objectives are as follows:
1. Advance regional economic integration and growth through trade and investment;
2. Promote the development of infrastructure, exports and enterprises in Member States;
3. Provide debt, quasi-equity and equity financing, as well as non-financial products and services, to qualifying entities and projects in Member States;
4. Render technical and management services to Member States, Partners, Donors and Stakeholders, including management of special purpose funds;
5. Foster the development and deepening of financial and capital markets in Member States;
The Bank’s mission is to be at the forefront of providing development capital and services to advance regional growth and integration, through customer focused and innovative financing instruments.
PTA Bank occupies a unique and competitive position in the sub-region derived from its:
- Ability to extend both long and short-term foreign and local currency denominated loans to the sub-region.
- Ability to act as a credible intermediary and conduit of financing for various financial institutions unable to lend directly into the sub-region;
- Capitalisation in hard currency and the availability of significant levels of callable capital acting as guarantee to the Bank’s borrowings;
- Focus on the sub-region’s enteprise sector, recognized as the engine of growth for the Bank’s member states;
- Intimate knowledge of the sub-region through linkages with government institutions, central banks, commercial banks, local Development Financial Institutions and private sector operators;
- Quality human resources whose experience, depth and breadth in development banking is unparalleled on the African continent; and
- Unique positioning as a regional multilateral institution, whose mandate cuts across several sub-regions.
Based on its competitive advantage and market niche in the sub-region, the Bank’s strategy over the next five years leading to 2017 is to:-
- Deepen and broaden current areas of engagement in trade and project finance in existing Member Countries as well as in new Members joining the Bank;
- Target extension to markets with low coverage - the Bank will actively explore opportunities to grow its’ business in countries that have strong potential and currently have low exposure levels;
- Product innovation and investment in existing and new business areas - the Bank will introduce new business lines such as fund management and agency services as well as more value-added trade finance products;
- Mobilize New Capital – consistent with the growth objectives and to safeguard capital adequacy, the Bank will focus on mobilization of additional capital through membership expansion and diversification approaches; and
- Enhance institutional capacity - the Bank will aim to boost its institutional capacity to execute the expanded mandate and increased business envisaged under the 5th Corporate Plan. Various capacity improvements in respect of governance, structure, people, process and technology will be undertaken.
The Bank, which has its headquarters located in Burundi, has regional offices in Kenya, Mauritius and Zimbabwe.