$6 billion in funding is available over the next 3 years for qualified SME’s around the continent after Africa Continental Free Trade Area (AfCFTA) Secretariat and United Bank for Africa (UBA) entered into an AGREEMENT.
The agreement was signed by both parties during the 30TH Afreximbank Annual Meeting (AAM) which was held in Accra, Ghana. The agreement aimed at establishing SMEs, these SME’s will engage in 4 areas which are Agro-processing, Automotive, pharmaceutical, and Transport and Logistics.
The main reason for collaboration with AfCFTA is to enhance the availability of funds and trades for SMEs to boost their advancement and their quota in the socioeconomic growth of the continent.
Muyiwa Akinyemi, who signed the agreement on behalf of UBA and managing director of the bank said the bank is continuously dedicated to helping the development and growth of SMEs in Africa. He added that the agreement is part of their unique plan for SMEs as it is a trigger to the financial growth of Africa.
The M.D. went on to say that, “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 as Africa’s Global Bank”.
H.E. Ambassador Wamkele Mene who is the Secretary-General of AfCFTA stressed the need to prompt Africa’s industrial development and enhance commercial activities. The collaboration, according to him, will advance the socio-economic health of Africa and its citizens.
Wamkele Mene concluded by saying, “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.”
