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Sindiso Ngwenya

Senior Business Reporter
THE Common Market for Eastern and Southern Africa (Comesa) has signed an agreement to transfer its infrastructure fund to the Eastern and Southern Africa Trade and Development Bank (PTA Bank).
The transfer of the facility which is called the Comesa Infrastructure Facility (CIF) means that PTA Bank now manages the fund.
Comesa secretary-general Sindiso Ngwenya and the bank president Tadesse Admassu signed the agreement in Nairobi, Kenya recently.

“The approval to transfer the CIF was granted by the Comesa Council of Ministers to enable it to benefit from the expertise of the PTA Bank in resource mobilisation and management.

“The transfer is in line with the PTA Bank charter that provides for the establishment and administration of special purpose funds in the region, given its role as a specialised and autonomous, regional, financial institution,” said Comesa.

It said this was in addition to its core mandate to provide financial assistance to member states by promoting their economic and social development in the region and internationally.

Zimbabwe is one of the 19 members of the trading bloc.
Infrastructure development has taken centre stage in the Comesa regional integration agenda as the key to unlocking the potential for economic take-off. The focus is especially on roads, railways, electricity, information and communication infrastructure, ports and waterways transport.

The 2013 Comesa chairman and Uganda president Yoweri Museveni while outlining the critical milestones of his tenure said several infrastructure projects have been identified within the past years that require $53 billion.

“They include the $28,4 billion we are raising for the railways, airports, ports, roads and border posts. Also, $31,4 billion is required for electricity and $630 million for ICT,” he was quoted as saying.

Among the initiatives taken to mobilise funds was the high level infrastructure conference in September last year where bankable projects were presented to development partners for financing.

The World Bank estimates that each year Africa needs $93 billion to cover the funding gaps for infrastructure.
The decision to enlist the PTA bank in raising infrastructural development funds was informed by the impressive performance it has registered recently.
According to the bank’s latest report, the balance sheet and profits have almost doubled in the past two years.