![[Ethiopia] Eastern and Southern Africa Trade and Development Bank approves $60 million loan request from three companies](PTA Bank.jpg)
[Ethiopia] Eastern and Southern Africa Trade and Development Bank approves $60 million loan request from three companies
The Eastern and Southern Africa Trade and Development Bank (TDB) formerly, PTA bank has approved $60 million loan borrowed by three Ethiopian companies. The bank with 20 shareholder countries hopes to embrace states out of the Common Market for Eastern and Southern Africa (COMESA) and other investor institutions.
Enyi General Business, one of the companies that had requested for the loan from the bank recently inked management contract agreement with the Accor Group, the France-based hotel brand operator, to develop an upscale Pullman Hotel in Addis Ababa. Back in 2014, during the African Hotel Investment Forum, the two sides have signed the management contract targeting financing facility to be secured from French creditors.
In addition to that, Gatepro Metal Engineering is also veering to install a steel factory worth $20 million. Both Enyi and Gatepro have been approved to receive the financing from TDB bank.
These are some of the projects TDB considers fit to access its credit facility. According to Admassu Tadesse, the President of the bank, the institution is willing to avail funding to sectors such as energy, finance, transport, tourism, and manufacturing in Ethiopia up to a total loan portfolio of half-a-billion dollars.
But currently, most of the finances TDB allocates for Ethiopia are directed towards the export sector. That is because the National Bank of Ethiopia (NBE) regulation, which dictates that when local enterprises borrow from foreign creditors they are required to have the capacity to repay the loans in dollar terms. Hence, due to the requirement of the central bank, the bank can only lend to those companies which have hard currency generating capacity like exporters.
Debased from its previous headquarters in Bujumbura, the capital of the conflict-hit Burundi, TDB was first officiated in Kenya a few weeks before the second launch took place in Ethiopia. According to Admassu, Ethiopia as well will be serving the Horn of Africa region as a hub. The office of the regional hub is to be located around Olympia area.
Few months ago, a host agreement was signed between the Ministry of Foreign Affairs and TDB to allow the operations of the regional office here in Ethiopia. However, the bank as the financial arm of COMESA delayed its début in Ethiopia to wait until COMESA Insurance and Africa Trade Insurance Agency, the two sister institutions of TDB finalize their host agreements with the Government of Ethiopia.
Acknowledging his achievements in his endeavor to transform TDB as one of the credit rated development banks in Africa, the board of directors of TDB appointed Admassu to lead the bank for a second term. Back in 2012, when Admassu was assigned to head the then PTA Bank, the loan portfolio was somewhere around USD one billion.
That in just about few years has tripled to reach four billion; a 300 percentage growth. During the launching, dignitaries such as Rupiah Banda, former President of Zamia was in the room. The president with his good humors recalled his times as a student of Addis Ababa University, Arat Kilo Campus. Sindiso Ndema Ngwenya, secretary general of COMESA, announced that the board has nominated President Banda to be one of the advisors of the board of directors.
