UBA Set to Disburse $6 Billion Loan to Mechanics, Farmers, and More Following Acquisition of Dubai-based Assets

The United Bank for Africa Plc (UBA) has unveiled plans to provide a $6 billion facility to support Small and Medium-scale Enterprises (SMEs) in four key sectors. These sectors include Agro-processing, Automotive, Pharmaceuticals, Transport, and Logistics. The initiative aims to foster the growth of SMEs, with the funding sourced from the Africa Continental Free Trade Area (AfCFTA) Secretariat.

During the Africa Day celebration at the recently concluded Lagos International Trade Fair on November 15, 2023, Muyiwa Akinyemi, UBA's Deputy Managing Director, announced the commitment. Akinyemi revealed that this decision stemmed from a recent agreement with the AfCFTA Secretariat, emphasizing that the $6 billion financing would be extended to qualifying businesses continent-wide over the next three years.

The agreement between UBA and the AfCFTA was formalized on the sidelines of the 30th Afreximbank Annual Meeting held in Accra, Ghana, as reported by Punch. Akinyemi outlined that the collaboration aims to "promote the development of SMEs operating in four sectors under the 1st phase of the partnership." The primary focus is on import-dependent areas, providing technical and financial solutions to encourage intra-African/domestic alternatives.

Highlighting the significance of the AfCFTA's initiatives, Akinyemi underscored their role in enhancing access to finance and markets for SMEs. He expressed confidence that this support would stimulate business growth, thereby contributing to the socio-economic development of Africa. UBA's commitment to backing businesses aligns with its strategic focus on the SME segment, and the $6 billion loan is poised to enhance growth capacity across the 20 African countries in which UBA operates.