United Bank for Africa (UBA) has unveiled an initiative aimed at providing extensive financing solutions to bolster Small and Medium-sized Enterprises (SMEs) across the African continent.
Through this initiative, UBA will enable SMEs to access financing for businesses specializing in key sectors such as agro-processing, pharmaceuticals, automotive, transport, and logistics.
UBA and AfCFTA to offer $6 billion financing
This financing initiative results from UBA’s recent partnership with the African Continental Free Trade Area (AfCFTA) secretariat, designed to offer up to $6 billion in financing over the next three years to eligible SMEs across Africa.
The agreement was signed during the 30th Afreximbank Annual Meeting held in Accra, Ghana.
Under this partnership, UBA and AfCFTA will promote the development of SMEs in four sectors, including agro-processing, automotive, pharmaceuticals, and transport and logistics.
The financing, totaling $240,000, will be provided in the form of working capital loans and asset finance loans to help SMEs grow and succeed in the evolving African business landscape.
Muyiwa Akinyemi, Deputy Managing Director of UBA, emphasized the bank’s commitment to supporting SME growth and development across Africa.
UBA aims to provide non-financial services to these SMEs to enhance their capacity for growth and sustainability.
Alero Ladipo, UBA’s Group Head of Marketing and Corporate Communications, noted that the bank’s support for SMEs aligns with its vision to be a catalyst for economic development across Africa.
In addition to financial assistance, UBA will provide capacity-building opportunities for SMEs through training programs and resources.
UBA, a leading pan-African financial institution, serves over 37 million customers across 20 African countries and has a presence in international financial centers like New York, London, Paris, and now the UAE.
The bank offers a range of banking services, cross-border payments, trade finance, and more to connect people and businesses across Africa.