In a significant move towards fostering economic growth and empowering small businesses, the United Bank of Africa (UBA) has unveiled a groundbreaking $6 billion financing initiative aimed at boosting Small and Medium Enterprises (SMEs) across Africa. This strategic initiative, designed to fuel expansion, will provide crucial funding access to SMEs operating in key sectors including Agro-processing, Pharmaceuticals, Automotive, Transport, and Logistics.
Under this ambitious program, UBA has partnered with the African Continental Free Trade Area (AfCFTA) secretariat, a move hailed as a milestone in the continent’s economic development. The initiative, launched during the 30th Afreximbank Annual Meeting (AAM) in Accra, Ghana, seeks to deliver $6 billion in funding to eligible SMEs throughout Africa within the next three years.
The partnership between UBA and AfCFTA aims to promote the growth of SMEs by providing both technical expertise and financing solutions for intra-African and domestic alternatives. This collaborative effort reflects a shared commitment to nurturing and supporting the backbone of African economies – its small and medium-sized enterprises.
Commenting on the initiative, UBA’s Deputy Managing Director, Muyiwa Akinyemi, highlighted the bank’s dedication to driving the progress of SMEs across the continent. He emphasized UBA’s role as the continent’s global bank and reiterated the bank’s strategic focus on the SME segment as a catalyst for Africa’s economic development. “This initiative is in line with our strategic focus on the SME segment, being a catalyst for the economic development of Africa,” he stated, underlining UBA’s commitment to empowering local businesses and entrepreneurs.
By providing vital financial resources and technical support to SMEs in critical sectors, UBA and AfCFTA are poised to drive innovation, create employment opportunities, and stimulate economic growth across Africa. This initiative stands as a testament to the collaborative efforts underway to build a prosperous and sustainable future for the continent, one small business at a time.
As the $6 billion SME financing initiative takes flight, it heralds a new era of economic empowerment and entrepreneurial development, promising a brighter future for small businesses and, by extension, the entire African continent. Continue Reading