United Bank for Africa (UBA), a leading pan-African financial institution, has unveiled a substantial $6 billion initiative aimed at bolstering the growth of Small and Medium Enterprises (SMEs) across the continent.
UBA, known for its global presence with offices in the UAE, New York, London, and Paris, issued a statement on Monday outlining its plan to support businesses operating in key sectors such as agro-processing, pharmaceuticals, automotive, transport, and logistics.
This initiative follows UBA’s strategic partnership with the African Continental Free Trade Area (AfCFTA) secretariat. The agreement, signed in June during the 30th Afreximbank Annual Meeting in Ghana, outlines a three-year commitment to providing financial support to eligible SMEs across Africa.
Muyiwa Akinyemi, UBA’s Deputy Managing Director, emphasized the bank’s role as a catalyst for economic growth in Africa. With operations in 20 African countries, UBA aims to propel SME growth across the continent.
Alero Ladipo, Head of Marketing at UBA, detailed the support SMEs can expect to receive. Eligible businesses will have access to working capital loans, including overdrafts and short-term loans, with a maximum value of $120,000 in their local currencies. Additionally, SMEs can access asset finance loans of up to $120,000, enabling them to acquire essential operational assets and equipment. These initiatives align with UBA’s commitment to job creation, local production enhancement, and the promotion of intra-African trade, all in line with AfCFTA’s objectives.
Ladipo highlighted UBA’s recognition of the vital role played by SMEs in driving economic growth and job creation. This commitment reinforces the bank’s dedication to supporting these crucial drivers of African economic development.
UBA’s $6 billion initiative signifies its unwavering commitment to fostering the sustainable growth of African businesses and economies. As the African Continental Free Trade Area gains momentum, UBA’s support for SMEs solidifies its role in advancing Africa’s economic future.
Photo Source: Google
By: Montel Kamau
Serrari Financial Analyst
26th September, 2023
