HomeBusinessPTA Bank loans Byo offers $5m

PTA Bank loans Byo offers $5m

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A DELEGATION from the Trade and Development Bank of Eastern and Southern Africa (PTA Bank) is expected in Bulawayo this week to meet captains of industry amid reports a loan of $5 million is in the offing for the city’s private sector.

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Africa Corporate Advisors executive director Mike Nyamazana told a ZimTrade breakfast meeting to unveil findings of market research on Angola in Bulawayo last Friday that the visit would be made to assess projects that need funding.

“The delegation from PTA Bank will be in Bulawayo probably during the mid-week to meet companies or businesses with projects that need funding,” he said.

“They said they would be offering a minimum investment loan of $5 million for companies to finance their projects.”

Nyamazana urged Bulawayo companies to take advantage of the presence of the regional bank’s officials.

The visit comes at a time when companies especially in Bulawayo, are in dire need of funding.

Bulawayo is one of the cities that have been hit hardest by deindustrialisation after recording close to 100 company closures last year.

The company closures have largely been attributed to shortages of working capital, erratic power supplies and high operation costs largely because of antiquated machinery and the high cost of labour.

Industries need an estimated $400 million to recover, but have been battling to attract the required capital largely due to policy inconsistencies — chiefly the indigenisation law which calls for foreign companies to yield 49% of their shareholding to locals.

PTA Bank is a treaty-based regional institution, whose membership is open to countries and institutions from the region as well as outside the region, provided they hold two-thirds of the bank’s shares.

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