To bolster economic development across Africa, the United Bank for Africa (UBA), has unveiled a groundbreaking initiative offering $100 million in new loans. The loans, which are earmarked for Small and Medium Enterprises (SMEs), and green finance projects, are poised to inject vitality into businesses continent-wide.
The revelation came during a momentous partnership signing ceremony between UBA and the African Guarantee Fund (AGF) at the bank’s Lagos Head Office, as announced by UBA’s Group Managing Director, Oliver Alawuba.
Alawuba underscored the bank’s commitment to driving economic progress and alleviating poverty through this initiative.
He highlighted UBA’s intention to extend loans to women-led SMEs at reduced rates, demonstrating a steadfast dedication to gender equality. Moreover, the partnership with AGF, which includes a $50 million Portfolio Guarantee, is poised to provide vital support to SMEs and green finance projects.
Emphasizing the pivotal role of SMEs in Africa’s economic landscape, Alawuba reiterated UBA’s resolve to support these enterprises, particularly those led by women. With an extensive network spanning 20 African countries and major global financial hubs, UBA stands poised to facilitate transformative change.
Under the agreement, AGF will not only provide financial guarantees but also spearhead capacity-building initiatives, with a particular focus on women-led businesses and green projects across UBA’s operational territories.
The partnership represents a significant step towards advancing economic growth on the continent, as stated by AGF’s Group CEO, Jules Ngankam.
By de-risking SMEs, particularly those led by women and operating in the green sector, the initiative aims to unlock their full potential and catalyze growth.
This landmark collaboration follows UBA’s pledge, in tandem with the Africa Continental Free Trade Area (AfCFTA) Secretariat, to commit $6 billion to SMEs across Africa. Through initiatives like these, UBA is solidifying its position as a key player in driving economic integration and fostering sustainable growth across the continent.
