The United Bank for Africa has announced a significant $6 billion initiative aimed at providing comprehensive financial solutions.
The primary objective is to bolster and support small and medium-sized enterprises (SMEs) across Africa, with a particular focus on key sectors like agro-processing, pharmaceuticals, automotive, transport, and logistics.
In a statement issued on a Sunday, the bank articulated its commitment to granting SMEs access to financing. This initiative has become possible thanks to UBA’s recent partnership with the African Continental Free Trade Area secretariat, formalized during the 30th Afreximbank Annual Meeting in Accra, Ghana.
Under this partnership, UBA pledges to extend up to $6 billion in financing to eligible SMEs across Africa over the next three years.
This collaboration between UBA and AfCFTA will initially concentrate on supporting SMEs in import-dependent sectors such as agro-processing, automotive, pharmaceuticals, transport, and logistics. Their support goes beyond financial solutions, encompassing technical assistance to promote domestic alternatives within Africa.
Muyiwa Akinyemi, Deputy Managing Director of UBA, emphasizes the bank’s commitment to fostering SME growth and development continent-wide, aligning with its role as a catalyst for Africa’s economic progress.
Furthermore, UBA’s vision under this partnership extends beyond financial support; it aims to offer non-financial services to these SMEs, helping them build capacity for growth across the 20 African countries where UBA operates.
Leveraging technology, UBA aims to efficiently deliver its financing activities, contributing to its reputation as “Africa’s Global Bank.”
Alero Ladipo, Group Head of Marketing and Communications at UBA, has disclosed that the bank is ready to provide $240,000 in financing, comprising working capital loans and asset finance loans.
These funds are specifically designed to empower businesses for success in the ever-evolving African business landscape.
