The deal is a milestone on cross border regional trade growth opportunities for small and medium-scale enterprises
United Bank for Africa (UBA) Plc, has inked a deal with the Africa Continental Free Trade Area (AfCFTA) Secretariat to provide financing for up to Sh844.5 billion ($6.bn) over the next 3 years to small and medium-scale enterprises (SMEs) across Africa.
The lender signed the agreement with AfCFTA on the side-lines of the 30th Afreximbank Annual Meeting (AAM) which was held in Accra, Ghana. By this agreement, the parties are to promote the development of tiny players operating in four sectors under the phase 1 of the partnership which are largely import dependent by providing technical and financing solutions for intra-African/domestic alternatives. These economic sectors are agro-processing, automotive, pharmaceuticals, transport and logistics.
One of the key initiatives of the AfCFTA is to improve access to finance and markets for SMEs to encourage their growth and contribution to the socio-economic development of Africa.
The deputy managing director of UBA, Muyiwa Akinyemi, who signed the agreement on behalf of the bank, noted that being Africa’s global bank, UBA remains committed to supporting the growth and development of SMEs.
“This is in line with our strategic focus on the SME segment being a catalyst to economic development of Africa,” said Akinyemi. “Under this partnership UBA will go beyond just financing to provide non-financial services to these SMEs to develop the capacity for growth across the 20 African countries that we are present and build sustainable business practices. We shall also be leveraging on technology to deliver our financing activities to the beneficiaries and this platform provides us with a unique opportunity to stimulate the development of the continent.”
On his part, the Secretary-General of the AfCFTA, Ambassador Wamkele Mene, who spoke on the agreement with UBA, emphasized the need to catalyze Africa’s industrialization and boost intra-Africa trade to improve the socio-economic well-being of the continent and its people, which he noted was a key factor behind the partnership.
“The Secretariat is committed to supporting SMEs as it recognizes the financing gap SMEs face on the continent and intend to mitigate this gap through this partnership. The identified areas of collaboration with UBA will provide the desired impetus for these SMEs to achieve the desired growth in their intra-Africa/export trading capabilities, which aligns with the objectives of the AfCFTA,” Ambassador Wene said.
UBA is a financial services provider on the African continent, with operations in 20 African countries such as Nigeria, Benin, Ghana, Sierra Leone, Liberia, Cote D’Ivoire, Senegal, Mali, Burkina Faso, Guinea, Zambia, Tanzania, Kenya, Uganda, Mozambique, Gabon, Congo Brazzaville, Congo DRC, Chad and Cameroon.
The bank, which is also present in the United Kingdom, United States of America, France and United Arab Emirates, provides retail, SME, commercial and institutional/wholesale banking services and financial inclusion through technology and customer experience.
