The United Bank for Africa has unveiled a $6 billion program to promote and strengthen the operations of small and medium-sized businesses across the African continent by offering reliable and all-encompassing financial options.
The program would allow SMEs to obtain funding for small enterprises that specialize in the main industries of agro-processing, pharmaceuticals, automotive and transportation, and logistics, the bank said in a statement on Sunday.
The statement read, “The funding effort is fueled by UBA’s recent partnership with the secretariat of the African Continental Free Trade Area to provide financing for up to $6 billion over the next three years to qualifying SMEs throughout Africa. An agreement was signed on the margins of the 30th Afreximbank Annual Meeting which was held in Accra, Ghana.
“Under the terms of the agreement, UBA and AfCFTA committed to support the growth of SMEs operating in four sectors during the partnership’s first phase that is heavily reliant on imports by offering technical and financial assistance for intra-African/domestic alternatives.
These industries include agriculture, transportation, pharmaceuticals, and the automotive and automotive industries.
While signing the contract on behalf of the bank, the deputy managing director of UBA, Muyiwa Akinyemi, stated that as Africa’s global bank, UBA remained committed to fostering the expansion and development of SMEs all over the continent.
According to him, it was consistent with the company’s strategic goal of using the SME market as an engine for Africa’s economic growth.
According to Muyiwa, “Under this cooperation, UBA will go beyond only finance to give non-financial services to these SMEs in order to strengthen the ability for growth throughout the 20 African nations where we are present and promote sustainable business practices.
“As Africa’s Global Bank, we will also be utilizing technology to bring our financing activities to the beneficiaries, giving us a rare opportunity to promote the growth of the continent.”
The Group Head of Marketing and Communications at UBA, Alero Ladipo, also spoke during the panel, announcing that the bank would be providing $240,000 in working capital loans and asset finance loans to help position the businesses for success in the rapidly changing African business environment.
