United Bank for Africa (UBA), a Tier One Lender in Nigeria, has inked a significant $6 billion Memorandum of Understanding (MOU) with the African Continental Free Trade Area (AfCFTA) secretariat. The partnership aims to provide funding for Small and Medium Enterprises (SMEs) in leveraging the opportunities presented by the AfCFTA agreement.
Babatunde Ajayi, Head of SME Banking at UBA, revealed this during the Nigerian Canadian Business Association Business 2023 Roundtable in Lagos. The event’s theme, “Enabling Growth by Unlocking Access to Capital, Technology, And Markets,” emphasized the critical factors for SME expansion.
Ajayi highlighted concerns about intra-African trade remaining below 20%, underscoring the $6 billion partnership’s focus on four sectors: Agro-processing, Automotive, Pharmaceuticals, and Transport and Logistics. These sectors hold significant potential for import substitution and substantial gains across the African continent.
Sunny Omeiza, Director of Trade Promotion at the Lagos Chamber of Commerce and Industry, pinpointed energy, access to finance, and multiple taxation as major hurdles for SMEs. He emphasized that Nigeria’s high production costs had impacted the competitiveness of domestically produced goods compared to imported products.
Ebi Obaro, Chairperson of the NCBA, emphasized the pivotal role of access to capital, technology, and markets for SMEs in navigating the global economy. She highlighted the transformative impact of technology, aiming to enhance efficiency and productivity for businesses in Nigeria and Canada.
