UBA signed $6 billion MOU with AfCFTA
By Kingsley Odii
United Bank for Africa (UBA) recently has signed a $6 billion financing agreement with the African Continental Free Trade Area (AfCFTA) in Accra Ghana, to eliminate trade barriers and promote intra-African trade. The agreement aims to boost intra-African trade and encourage small and medium sized enterprises (SMEs).
According to UBA, the basic sectors to benefit from the unprecedented all-round support and trade facilitation are: Pharmaceuticals, automobile, transport and logistics, agriculture and agro-processing.
The financing agreement will also support other African businesses looking to transact with other African countries by providing financing clearing settlement and risk management services. This will help to boost cross-border trade, diversify exports and promote economic growth.
AfCFTA is a historic trade agreement that aims to create a single market for goods and services in Africa, with the goal of boosting economic growth and development across the continent. It was officially launched in January 2018 and has been ratified by 54 out of 55 African Union member states.
According to the AfCFTA secretariat, the agreement will help to create jobs and reduce poverty on the continent. It will also support the implementation of the AfCFTA agreement which seeks to create a single market for goods and services, free movement of people and investment and a unified currency for Africa.
The agreement between UBA and AfCFTA is expected to continue significantly to the realization of the trade agreement’s objectives. By eliminating trade barriers and facilitating trade finance, UBA’s support will enable businesses to expand their operations and to tap into new markets within Africa. This will not only benefit individual businesses but also contribute to economic integration and prosperity across the continent.
The six billion dollars agreement reflects UBA’s commitment to supporting economic development in Africa and its role as a leading financial institution on the continent. With extensive presence and expertise in Africa, UBA is well positioned to contribute to the success of AfCFTA and drive economic growth in the region.
UBA is the largest pan-African banking group, which operates in 20 African countries with more than twelve million customers and has a presence in New York London and Paris, is well positioned to provide the necessary financing and support to businesses looking to trade across borders in Africa. The bank has a strong track record of supporting economic development initiatives and this agreement is expected to further strengthen its commitment to Africa’s growth and development agenda.
Ultimately, the UBA-AfCFTA agreement represents a significant step towards the realization of the African Union’s vision of a prosperous and integrated Africa. By working together to eliminate trade barriers, UBA and AfCFTA are paving the way for increased trade and economic cooperation within Africa, which ultimately benefit businesses and individuals across the continent
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