African Telecoms to Benefit From Chinese Loan
China's interest in Africa seems to be transcending the mining and construction industry: It has extended a loan of 3.3 billion Kenyan shillings (US$50.4 million), with the telecommunication industry earmarked as a major beneficiary.
The loan deal was extended by China Development Bank (CDB) to the Eastern and Southern African Trade and Development Bank, also known as PTA Bank. The loan is significant because it is the largest line of credit the bank has received from a single institution and will support its strategy in financing the budding regional telecom industry.
PTA Bank intends to be active in the telecom sector, which has a large impact on development, according to Michael Gondwe, PTA Bank president.
The Framework Cooperation Agreement, which spells out the terms of the partnership, dates back to the 2006 Sino-Africa Beijing Summit.