Economic growth and employment in Africa: KfW supports expansion of infrastructure and export capacity

• Road construction, energy and water supply, information technology: USD 100 million promotional loan for PTA Bank
• First export promotion project in Africa: EUR 8.5 million for the Development Bank of Rwanda (BRD)

KfW signed a promotional loan agreement with the Eastern and Southern African Trade and Development Bank (PTA Bank) for USD 100 million on behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ). KfW provides these funds for infrastructure projects in Eastern and Southern African countries, for example in the areas of road construction, energy and water supply, and information technology. Infrastructure development is still one of the key challenges on the African continent. Up to now, high transport costs and insufficient access to energy have systematically kept especially the landlocked countries in Africa excluded from world trade. As financial systems are still not very well developed, PTA Bank, as a development bank anchored in Eastern and Southern Africa, plays a crucial role in funding local companies.

"The loan strengthens the strategic partnership of KfW and PTA Bank. Both banks are involved in the International Development Finance Club (IDFC), which is the network of national and regional development banks. Within the scope of this particular project, we work together to create a basis for economic growth and employment to achieve a sustainable reduction of poverty," says Dr Ulrich Schroeder, Chief Executive Officer of KfW Group.

In addition, KfW signed an agreement for EUR 8.5 million with the Development Bank of Rwanda (BRD) and the Rwandan finance ministry. This is the starting signal for KfW's first export promotion project in Africa, which is to create jobs and foster economic growth in Rwanda. The funds are granted to export-oriented smaller and medium-sized Rwandan companies and enable them to expand their export activities. Rising sales are expected in particular in the field of agricultural products such as cut flowers and fruit.

Further information on KfW Development Bank is available at: www.kfw-entwicklungsbank.de.