TDB Newsletter Issue 1 2016

04 07 10 15/16 Mozambique joins More Class B Shares (RSSB, BOG and CSR Djibouti HIGHLIGHTS PTA Bank NSSF Uganda, SACCOS) and Exim Bank signing GROWING OUR PARTNERSHIPS PTA BANK PTA Newsletter BEST TRADE FINANCE BANK IN EAST AFRICA PTA Bank Revamps its Business Continuity Program n today’s world, Business Continuity Management (“BCM”) is becoming increasingly important. It is a fact of life that I‘stuff happens’. Dealing with it is much of what enterprise- wide risk management is all about. Many operational risks can be managed and mitigated down to acceptable levels. Some of the things, however, cannot be prevented. The best we can do is to have in place contingency plans which will mitigate the effects as best as we can. Bearing this in mind, PTA Bank (the “Bank”) engaged a reputable BCM expert to review and enhance the Bank’s Business Continuity Program. The engagement was undertaken over a 5 month period, from October 2014 to February 2015. The Consultant assisted the Bank to put in place and maintain a comprehensive, robust and tested Business Continuity Plan (BCP) addressing how the Bank will respond to events that may significantly disrupt its business. Since the timing and impact of disasters and disruptions are unpredictable, the BCP was designed to allow the greatest amount of flexibility possible in responding to events, while simultaneously minimizing the impact of such occurrences Policy and governance form the cornerstone of the PTA on Bank stakeholders. Bank BCM. Without the right governance arrangement, the best plans in the world are useless. At PTA Bank, In brief, the Bank’s BCP addresses: data back-up and business continuity is not an IT issue. Like operational risk recovery; all mission critical systems; financial and operational management, it concerns the whole business and threatens assessments; alternative communications with stakeholders its existence. It is therefore owned by all parts of the Bank, (including but not limited to employees, customers, lenders with a central point of accountability on the Board. The and investors); and alternative physical locations for Chief Risk Officer (“Project Sponsor”) is responsible for employees. The business impact analysis provided the basis ensuring adequate plans are in place and are regularly from which business continuity strategies and plans were tested and reviewed. Developing, reviewing and invoking developed. It is the point in the process where recovery the BCP involve a steering committee which is chaired by priorities are established, together with the minimum the sponsor. This includes stakeholders from operations, resources needed to maintain their availability. PTA Bank risk, IT and other support functions. The BCM document BCM concentrates its business recovery on impacts and is manageable and accessible to all those who will need it. decision making, rather than the nature of the disruption The Bank is cognizant of the fact that not everybody needs and its possible causes. the whole plan. The steering committee worked on a “need to know” basis and planned at all levels, from enterprise- During the review exercise, the BCP was tested for wide to individual departments and units, so staff may have effectiveness and resilience. As the military often say “no what they need at their level and understand their role in the plan of operations extends with certainty beyond the first event of an incident. encounter with the enemy’s main strength” (Militarische, Werke, 1892). An independent observer was available Effective business continuity measures are critical for any during the test to provide objective feedback on how the business. PTA Bank is committed to protecting its staff and test worked, including the effectiveness of communication ensuring continuity of critical businesses and functions in between staff, the crisis team and others, and to note where order to protect the reputation of the Bank, mitigate risk, things went well. The idea was to validate the process and safeguard revenues and sustain customer confidence. The identify weaknesses or errors in the BCP. The exercise was Bank’s plan is jargon free and easy to implement when largely successful. It was a learning experience. needed. Fundamentally, it’s all about resilience. PAGE 2 | QUARTER 1, 2016 Integrating and Advancing the Region’s Economies PTA Bank joins the African Union in the fight against Ebola virus Addis Ababa on 26 March 2015, between the Chairperson of the AU Commission Dr. Nkosazana Dlamini Zuma and the President of PTA Bank, Mr. Admassu Tadesse. Appreciating the PTA Bank’s contribution, Dr. Dlamini Zuma highlighted that the fight is not yet won. “The last mile seems to be the most difficult”, she said, adding that the PTA Bank is coming in at the right time, as the ASEOWA mission needs to be on the ground for some time to come. Mr Tadesse on the other hand, expressed the Bank’s commitment, saying “The PTA has a duty to throw its support behind the leadership of the African Union.” AAEST was established as a charitable trust under the laws of Mauritius for the purpose of raising funds to be deployed to train, equip and deploy African health workers in the fight against Ebola, to build long term local health capacity and continental capacity for disease control. In partnership ddis Ababa, Ethiopia 26 March 2015- The Eastern and with the African Union, the AAEST’s mission is to mobilize Southern African Trade and Development Bank (PTA resources to support much needed health workers, drawn ABank) has committed to support the fight against from within Africa to the Ebola-afflicted countries through Ebola by providing a capacity building grant of USD 50 000 the African Union Support to the Ebola Outbreak in West Africa (ASEOWA). to the Africa against Ebola Solidarity Trust (AAEST). These funds will be utilized to support the establishment of the The PTA Bank is a multilateral development financial African Centers for Disease Control and Prevention (African institution established by the Charter of the Eastern and CDC) to build Africa’s capacity to deal with public health Southern African Trade and Development Bank, whose emergencies in the future. objectives include, cooperating with other institutions and organizations, public or private, national or international, To recognize the donation, a Memorandum of Understanding among others, which are interested in the economic and (MOU) was signed at the African Union headquarters in social development of the Member States of the PTA Bank. PTA Bank Board of Directors and Management visit PPC Barnet DRC Cement Plant Integrating and Advancing the Region’s Economies QUARTER 1, 2016 | PAGE 3 The Republic of Mozambique joins the PTA Bank In early 2016, the government of Mozambique signed the The Bank’s Trade Finance and Project and Infrastructure country’s accession to the PTA Bank and became its 19th Finance divisions have already identified attractive potential Member State. Membership and geographic expansion are projects that could benefit from the Bank’s products. The loan crucial to the strategy of the Bank, as set out in its 2013-17 portfolio of the Bank is expected to soon benefit from further corporate plan which was approved by the Board of Governors diversification as Mozambican private and public enterprises on December 2012. Mozambique had been a key target for can now become new clients. accession, as it offers strong potential for loan growth and regional development impact for the Bank. The accession of Mozambique as a new Member State was preceded by the entry of Banco Nacionale de Investimento Mozambique has sustained an economic growth rate of more the Mozambique (BNI, Mozambique’s national development than 7% over recent years as its infrastructure developed bank) into the capital of the Bank when it purchased USD5m at a qiuck pace (strong construction, transportation and of Class B shares in 2014. BNI paved the way for the country’s communication sectors) and the political environment was accession to the Bank and will continue to be a key partner to peaceful and conducive to investment. Mozambique’s nominal PTA Bank in its mission of developing the country’s economy GDP was estimated at USD17bn for 2015, which adds 3% to and supporting the growth in trade with other Member States the Bank’s Member States GDP and offers significant growth and the rest of the world. potential for the Bank considering its vibrant economy and strong outlook. The Bank continues its efforts to increase its membership base and encourage additional members of the Tripartite region to join With a population close to 24 million inhabitants (or an the Bank. According to its new Charter, the PTA Bank covers the additional 4% to the total population of the Bank’s Member Tripartite region which includes the Common Market for Eastern States) and a unique position between southern and eastern and Southern Africa (COMESA), the East African Community Africa, Mozambique will surely become a market where the (EAC), the Indian Ocean Community, the Southern African PTA Bank can make strong impact on economic and social Development Community (SADC) and the Intergovernmental development as well as regional integration. Mozambique has Authority on Development (IGAD) in Eastern Africa. Countries borders with 4 Member States of the Bank: Tanzania, Malawi, of the Tripartite region and countries bordering it are all targets Zimbabwe and Zambia and the Bank, which aims to support of PTA Bank’s geographic expansion. Discussions have started trade between

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