United Bank of Africa (UBA) has launched a $6 billion financing initiative aimed at supporting the growth of Small and Medium Enterprises (SMEs) across Africa. This initiative targets SMEs in sectors such as Agro-processing, Pharmaceuticals, Automotive, Transport, and Logistics, providing them with crucial funding for expansion.
UBA has partnered with the African Continental Free Trade Area (AfCFTA) secretariat to implement this financing initiative, with the goal of disbursing $6 billion to eligible SMEs across Africa within the next three years. The agreement was formalized during the 30th Afreximbank Annual Meeting in Accra, Ghana.
Under the initial phase of this partnership, UBA and AfCFTA will work together to promote SME development by offering technical and financing solutions for intra-African and domestic opportunities.
UBA’s Deputy Managing Director, Muyiwa Akinyemi, expressed the bank’s commitment to supporting the growth of African SMEs, emphasizing UBA’s role as Africa’s global bank.
Akinyemi stated, “This is in line with our strategic focus on the SME segment being a catalyst for the economic development of Africa.” He added that UBA would provide not only financing but also non-financial services to help SMEs build capacity for growth.
Deeper Insights into the UBA Initiative
Alero Ladipo, UBA’s Group Head of Marketing and Corporate Communications, highlighted the bank’s commitment to offering $240,000 in financing to SMEs in the Agro-processing, Automotive, Pharmaceuticals, Transport, and Logistics sectors.
This support will be a mix of working capital loans and asset finance loans, with the aim of positioning these enterprises for success in Africa’s evolving business landscape.
In addition to financial assistance, UBA will provide training initiatives and valuable resources to empower SMEs and equip them with the necessary expertise to excel in competitive markets.
Ladipo emphasized the bank’s belief in the critical role SMEs play in driving economic growth and job creation and stated that this initiative would contribute significantly to Africa’s overall development and prosperity.
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