UBA, AfCFTA invest $6bn to improve access to finance, markets for SMEs
By Felicia Nwosu
To improve access to finance and markets for SMEs to develop the capacity for growth, United Bank for Africa (UBA) Plc, in conjunction with Africa Continental Free Trade Area (AfCFTA), has signed an agreement to provide financing worth US$6.0bn. The agreement will last for the next three years to empower eligible Small and Medium Enterprises (SMEs) across Africa.
The signing was activated during the 30th AfreximBank’s Annual Meeting (AAM), which was held in Accra, Ghana. It was in demonstration of one of the key initiatives of the AfCFTA, which is to improve access to finance and markets for SMEs.
The partners stated that the symbiotic agreement will accelerate the growth and development of SMEs operating in four sectors under the first phase of the partnership. They noted that these are largely import dependent by providing technical and financing solutions for intra-African/domestic alternatives. According to both parties, these include Agro-processing, Automotive, pharmaceuticals, Transport and Logistics.
Muyiwa Akinyemi, the Deputy Managing Director of UBA, while signing the agreement reiterated that being Africa’s global bank, UBA is resolved in its commitment to supporting the growth and development of SMEs across Africa.
“Under this partnership UBA will go beyond just financing to provide non-financial services to these SMEs to develop the capacity for growth across the 20 African countries that we are present, and build sustainable business practices. We shall also be leveraging technology to deliver our financing activities to the beneficiaries, and this platform provides us with a unique opportunity to stimulate the development of the continent as Africas’ Global Bank,” he said.
Also, Ambassador Wamkele Mene, the Secretary-General of the AfCFTA, in alignment with the objectives of the AfCFTA, pledged that the identified areas of collaboration with UBA will provide the desired impetus for SMEs to achieve the desired growth in their intra-Africa/export trading capabilities. He pointed out the need to catalyze Africa’s industrialization and boost intra-Africa trade to improve the socio-economic well-being of the continent and its people is a key factor behind the partnership.
“The Secretariat is committed to supporting SMEs as it recognizes the financing gap SMEs face on the continent and intend to mitigate this gap through this partnership,” he said
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