TNLA formalizes steps to join AU financial bodies

South Sudan has taken its first legal step into joining two of the biggest continental banks after the Transitional National Parliament endorsed a move which will see it boost trade and development with partners.

The ratification of the treaties of the African Export-Import Bank and the Trade and Development Bank comes after the Chairperson of the Finance and Economic Planning Committee presented it to the MPS on Monday.

“The house ratified the agreement for Export and Import Bank and also Trade and Development Bank; these two institutions are very important,” David Nailo Mayo said

It will enable the country to acquire loans from the banks, he said.

He also said the importance of joining the two African Union institutions is in order to attract direct foreigner investments into the country.

Hon. Mayo said the country has to contribute some money to be a full member of the financial institutions.

“The subscriptions require for us is 54 million US dollars which the country will have to pay so that we are members of Trade and Development Bank,” he said.

Hon. Mayo says the subscription payment will by installments in one year time.

The Eastern and Southern African Trade and Development Bank commonly known as PTA Bank, is an African regional development financial institution established in 1985.

The Bank’s mandate is to finance and foster trade, socio-economic development and regional economic integration across its Member States.

According to the African Export-Import Bank (Afreximbank), it says its foremost Pan-African multilateral financial institution devoted to financing and promoting intra- and extra-African trade.

It was established in October 1993 by African governments, African private and institutional investors, and non-African investors.

Since 1994, Afreximbank said it has approved almost $35 billion in credit facilities for African businesses, including about $4.5 billion in 2014.

Afreximbank is headquartered in Cairo, Egypt.