Emmanuel OchayiThe United Bank of Africa (UBA) has unveiled a colossal $6 billion financing initiative aimed at turbocharging the growth of Small and Medium Enterprises (SMEs) across the continent.
The agreement, signed on the sidelines of the 30th Afreximbank Annual Meeting (AAM) in Accra, Ghana, brings together UBA and the African Continental Free Trade Area (AfCFTA) secretariat in a strategic partnership that promises to elevate SMEs to new heights.
Speaking at the signing ceremony, UBA’s Deputy Managing Director, Muyiwa Akinyemi, reiterated the bank’s unwavering commitment to propelling African SMEs to prosperity. He stated, “This is in line with our strategic focus on the SME segment being a catalyst for the economic development of Africa.”
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Under this visionary initiative, UBA will not only provide financial assistance but also offer non-financial services, leveraging technology to deliver financing activities.
Muyiwa Akinyemi noted, “We shall also be leveraging 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 as Africa’s Global Bank.”
Alero Ladipo, UBA’s Group Head of Marketing and Corporate Communications, further elaborated on the bank’s commitment, revealing that UBA plans to inject $240,000 in financing support.
This substantial financial backing will be offered through a combination of working capital loans and asset finance loans, with the aim of positioning these enterprises for success in Africa’s evolving business landscape.
Ladipo emphasized that SMEs in the sectors of Agro-processing, Pharmaceuticals, Automotive, Transport, and Logistics will benefit significantly from this initiative.
They will gain access to a working capital loan, comprising overdrafts and short-term loans, with a maximum value of $120,000 in their respective local currencies.
Additionally, they can secure an asset finance loan of up to $120,000 in their local currency to acquire operational assets and equipment for business expansion.
Beyond financial assistance, UBA is dedicated to empowering SMEs through a range of training initiatives and valuable resources. Ladipo underscored UBA’s commitment by stating, “UBA recognizes the critical role that SMEs play in driving economic growth and job creation.”
The strategic partnership between UBA and AfCFTA marks a turning point in the journey toward a more prosperous and economically robust Africa. Alero Ladipo expressed her optimism, saying, “We believe that this initiative will not only benefit individual businesses but will also contribute significantly to the overall development and prosperity of Africa.”
With the $6 billion financing initiative, UBA and AfCFTA are set to foster a new era of growth, innovation, and competitiveness for African SMEs, positioning them to thrive in an increasingly challenging global business landscape.
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