United Bank for Africa Plc (UBA) has successfully acquired a $150 million trade finance facility from the African Export-Import Bank (Afreximbank) aimed at alleviating the repercussions of the Ukraine war on its customers.
The trade finance facility, part of Afreximbank’s Ukraine Crisis Adjustment Trade Financing Programme for Africa, was finalized through a signing ceremony held by both entities during the Intra-African Trade Fair in Cairo, Egypt.
UBA highlighted that the facility’s terms are designed to support its clients in financing trade-related transactions. The funding will significantly contribute to financing various sectors of Nigeria’s economy, ultimately mitigating the adverse impacts of the Russia-Ukraine conflict.
During the signing ceremony, Denys Denya, Executive Vice-President of Afreximbank, emphasized that the increased demand for trade finance support to UBA’s clients motivated the funding. He underlined the importance of this support in bolstering confidence in settling international trade transactions, particularly for crucial imports.
The funding aligns with Afreximbank’s commitment to supporting Small and Medium-sized Enterprises (SMEs), particularly those in the manufacturing sector, to enhance production capacity, thereby stimulating economic growth in Nigeria.
Oliver Alawuba, Group Managing Director of UBA, expressed enthusiasm about the facility’s potential to further enhance intra-African trade, which has been significantly affected by the Ukraine crisis. Alawuba highlighted the strong partnership between UBA and Afreximbank, emphasizing their shared goal of ensuring better outcomes for customers.