business infrastructure 12.10.10.jpgThe Africa Export and Import Bank is this year expected to invest $500 million in key productive sectors of the economy with a view of restoring business confidence.

The arrangement is being made after the realisation that industry is failing to recover due to the lack of long term funding at concessionary rates.

In an interview in the capital, the multilateral financial institution’s manager for Southern Africa, Mr. Gift Simwaka, said negotiations for the facility with key government ministries are at an advanced stage.

“We are setting aside at least half a billion dollars this year to assist in the revival of export facilities and key productive sectors,” he said.

The Africa Export and Import Bank has in the past three years injected more than $300 million into key productive sectors through different industrial loan facilities that are being administered by local financial institutions.

While several regional and global multilateral financiers have made available industrial and economic loan facilities since 2009, economic observers are questioning the credibility of the schemes amid revelations that tight lending conditions attached to the loans are making it difficult for companies to access the required funds.