United Bank for Africa (UBA) Plc has inked a deal with the Africa Continental Free Trade Area (AfCFTA) Secretariat, pledging to provide financing of up to $6.0 billion over the next three years to eligible small and medium enterprises (SMEs) across Africa.
The agreement was signed during the 30th Afreximbank Annual Meeting (AAM) held in Accra, Ghana last week. UBA and AfCFTA aim to foster the growth of SMEs operating in four sectors during the initial phase of the partnership.
These sectors include agro-processing, automotive, pharmaceuticals, transport, and logistics. The primary objective is to provide technical and financing solutions that promote the development of intra-African/domestic alternatives, as these sectors heavily rely on imports.
The AfCFTA’s key focus is to enhance access to finance and markets for SMEs, encouraging their growth and their contribution to Africa’s socio-economic development.
Muyiwa Akinyemi, Deputy Managing Director of UBA, expressed the bank’s commitment to supporting the growth and development of SMEs across Africa.
He emphasized that UBA, as Africa’s global bank, aims to provide not only financing but also non-financial services to SMEs, enabling capacity building and the adoption of sustainable business practices.
Leveraging technology, UBA plans to deliver its financing activities to beneficiaries, thereby stimulating the continent’s development.
Ambassador Wamkele Mene, Secretary-General of the AfCFTA, highlighted the need to catalyze Africa’s industrialization and boost intra-African trade for the betterment of the continent’s socio-economic well-being.
He emphasized that the partnership with UBA aims to mitigate the financing gap faced by SMEs, enabling them to achieve growth in their intra-Africa and export trading capabilities, aligning with the objectives of the AfCFTA.
Dr. Adesola Adeduntan, CEO of FirstBank Group, expressed enthusiasm about the initiative, highlighting the bank’s commitment to innovation and delivering unparalleled banking services. The Humanoid Robot is part of the bank’s ongoing efforts to transform the banking landscape and enhance customer experiences in the digital era.
