United Bank for Africa (UBA) and the African Guarantee Fund (AGF) have signed a partnership agreement aimed at benefiting Small and Medium Enterprises (SMEs) across 20 African countries.
Under this partnership, AGF will provide support and guarantee SMEs with a $50 million Portfolio Guarantee, in addition to facilitating extensive capacity development for UBA’s customers who operate small businesses across the continent. The initiative will pay special attention to women-led businesses and green finance projects.
Oliver Alawuba, UBA’s Group Managing Director, expressed the bank’s commitment to supporting SMEs in Africa, particularly those founded and managed by women. He emphasized that the guarantee would serve as a catalyst for UBA’s intervention in SME businesses, enabling the bank to extend its reach and impact further.
Alawuba highlighted UBA’s dedication to advancing the African Continental Free Trade Area (AfCFTA) initiative, reaffirming the bank’s $6 billion commitment to SMEs across Africa. He also underscored UBA’s focus on promoting gender equality through collaborations such as the Affirmative Finance Action for Women protocol, which aims to bridge the significant financing gap faced by women in Africa, amounting to $42 billion.
Jules Ngankam, Group CEO of the African Guarantee Fund, emphasized that the partnership between two pan-African institutions would significantly drive economic growth across the continent. He highlighted the importance of de-risking SMEs, especially those owned or led by women and those operating within the green sector
This partnership builds on the announcement made by UBA and the Africa Continental Free Trade Area Secretariat in September 2024, furthering the bank’s commitment to SMEs across Africa under the AfCFTA initiative.
