The United Bank for Africa (UBA) has announced an initiative aimed at providing robust and comprehensive financing solutions to support and boost activities of Small and Medium scale Enterprises (SMEs) across the African continent.

Through this initiative, UBA will be giving SMEs the opportunity to access financing for small businesses that specialise in agro-processing, pharmaceuticals, automotive and transport and logistics.

The financing initiative, according to a statement issued by UBA on Sunday, is powered by the bank’s recent partnership with the African Continental Free Trade Area (AfCFTA) to provide financing for up to $6 billion over the next three years to eligible SMEs across Africa.

The agreement was signed on the sidelines of the 30th Afreximbank Annual Meeting (AAM) held recently in Accra, Ghana.

The Deputy Managing Director of UBA, Muyiwa Akinyemi, who signed the agreement on behalf of the bank, noted that being Africa’s global bank, UBA remains committed to supporting the growth/development of SMEs across Africa.

Akinyemi said: “This is in line with our strategic focus on the SME segment being a catalyst for the economic development of Africa.

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“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 Africa’s Global Bank.”

Also speaking, UBA’s Group Head, Marketing and Corporate Communications, Alero Ladipo, said the $240,000 financing by the bank will be in the form of working capital loans and asset finance loans, with the aim of positioning the businesses for growth and success in the evolving African business landscape.

Ladipo stated that the SMEs in agro-processing, automotive, pharmaceuticals, transport and logistics would be able to access a working capital loan by overdrafts and short-term loans with a maximum value of $120,000 in each of their country’s local currency; and asset finance loan of up to $120,000 in the local currency of the obligor, to use for the acquisition of operational assets and equipment to meet their business expansion needs.

She noted that this strategic move aligns with UBA’s vision to be a catalyst for economic development across Africa, adding that by empowering SMEs in key sectors, the bank is fostering job creation, enhancing local production, and promoting intra-African trade, all of which she said are pivotal goals of the AfCFTA agreement.

The Star