African countries will soon have more access to long-term financing for equipment and services from Europe.

This follows a deal signed between PTA Bank, a multilateral, treaty-based financial institution and KfW IPEX-Bank, a German bank on Wednesday in Kigali.

The agreement aims at providing PTA Bank member states easier access to long-term financing for imports of equipment and services from Germany and Europe in general.

The PTA has 18 member states from eastern and southern Africa.

According to PTA Bank, such equipment will enable local businesses to increase productivity, value addition and competitiveness.

"This provides a good basis for growth and sustainable development in Africa while indirectly supporting German and European exporters,” said Admassu Tadesse, CEO, PTA Bank.

He said the financing will facilitate trade and investment flows between the economies of eastern and southern Africa, and Europe.

"Our region is growing fast, and the demand for financing and capital goods is growing even faster. At the same time, PTA Bank has been upgraded, with higher credit ratings, increased capitalisation, expanded human capital, as well as improved risk management and governance - making us an increasingly attractive regional financial intermediary,” he said.