United Bank for Africa (UBA) has announced an initiative aimed at providing robust and comprehensive financing solutions to boost activities of Small and Medium scale Enterprises (SMEs) across the African continent.
In a statement by the bank, the financing initiative is powered by UBA’s recent partnership with the African Continental Free Trade Area (AfCFTA) secretariat to provide financing over $6 billion for the next three years to eligible SMEs across Africa. According to the bank, through this initiative, UBA will be giving SMEs the opportunity to access financing for small businesses that specialise in the key sectors of Agro-processing, Pharmaceuticals, Automotive and Transport and Logistics.
Based on the agreement, UBA and AfCFTA will promote the development of SMEs in four sectors. Under the 1st phase of the partnership which is largely import dependent, the collaboration will provide technical and financing solutions for intra-African/domestic alternatives.
The deputy managing director of UBA, Muyiwa Akinyemi, noted that being Africa’s global bank, UBA remains committed to supporting the growth/development of SMEs across Africa. This is in line with the bank’s strategic focus on the SME segment being a catalyst for the economic development of Africa.
Muyiwa added that, under this partnership, UBA will go beyond just financing to provide non-financial services to SMEs. This will develop the capacity for growth across the 20 African countries that were present and build sustainable business practices.
UBA’s group head, Marketing and Corporate Communications, Alero Ladipo, noted that the $240,000 financing by the bank will be in form of working capital loans and asset finance loans. This loan aim at positioning businesses for growth and success in the evolving African business landscape.