Accra, Ghana – In a groundbreaking move to foster economic growth and empower small and medium-sized enterprises (SMEs) across Africa, United Bank for Africa (UBA) Plc has joined forces with the Africa Continental Free Trade Area (AfCFTA) Secretariat. Under this historic agreement, UBA has pledged a staggering $6 billion over the next three years to finance eligible SMEs continent-wide.
The partnership between UBA and AfCFTA was solidified during the 30th Afreximbank Annual Meeting (AAM) held in Accra, Ghana. The collaboration aims to advance the development of SMEs operating in four import-dependent sectors: Agro-processing, Automotive, Pharmaceuticals, and Transport and Logistics. By providing both technical assistance and financing solutions, UBA and AfCFTA are set to revolutionize intra-African and domestic trade within these crucial economic sectors.
Supporting the growth and prosperity of African SMEs is a paramount goal of the AfCFTA. Access to finance and markets is a significant challenge for these enterprises, hindering their ability to contribute fully to Africa’s socio-economic development. UBA’s Deputy Managing Director, Muyiwa Akinyemi, who represented the bank at the agreement signing, emphasized their unwavering commitment to SME development across the continent. UBA views SMEs as catalysts for Africa’s economic progress and has strategically prioritized this segment.
Akinyemi added that UBA’s involvement goes beyond financing; the bank will offer non-financial services to bolster the growth capacity of SMEs across the 20 African countries where it operates. Leveraging the power of technology, UBA aims to deliver its financial services efficiently to beneficiaries. This landmark partnership positions UBA as Africas’ Global Bank, uniquely positioned to drive the continent’s development.
H.E. Ambassador Wamkele Mene, Secretary-General of the AfCFTA, emphasized the urgent need to spur Africa’s industrialization and enhance intra-Africa trade to uplift the socio-economic well-being of the continent’s people. The partnership with UBA aims to bridge the financing gap faced by SMEs, ultimately facilitating their growth and expanding their capabilities for intra-African and export trading.
“The Secretariat is dedicated to supporting SMEs, recognizing the challenges they face in accessing financing on the continent. Through this partnership, we aim to address this gap,” Ambassador Wamkele explained. “By collaborating with UBA in key areas, we will empower SMEs and enable them to realize their growth potential, aligning perfectly with the objectives of the AfCFTA.”
With this momentous partnership, UBA and AfCFTA have set the stage for a new era of economic progress and empowerment for African SMEs. The $6 billion investment pledge by UBA marks a significant milestone in fostering inclusive growth and unlocking the untapped potential of Africa’s vibrant MSME sector.
