UBA And African Guarantee Fund Forge $100 Million Partnership For SME Support Across Africa

UBA And African Guarantee Fund Forge $100 Million Partnership For SME Support Across Africa

In a groundbreaking collaboration for the advancement of small and medium enterprises (SMEs) in Africa, the African Guarantee Fund (AGF) and United Bank for Africa (UBA) have joined forces, signing a partnership that will see UBA providing $100 million in new loans to SMEs and business owners across the 20 African countries where the bank has a presence.

Impactful Developments:

1. Enhanced Financial Support: The partnership ensures UBA’s provision of $100 million in new loans, significantly boosting the financial resources available for SMEs across Africa. This injection of capital is crucial for the growth and sustainability of these businesses.
2. Portfolio Guarantee for SMEs: AGF, under the agreement, commits to supporting and guaranteeing SMEs with a $50 million Portfolio Guarantee. This initiative aims to de-risk SMEs, particularly those led by women, and those involved in green finance projects, making them more attractive to financial institutions.
3. Capacity Development for Business Owners: The collaboration includes extensive capacity development initiatives for UBA’s SME customers. This focus on skill enhancement and business education contributes to the empowerment of entrepreneurs, fostering innovation and sustainable growth.
4. Promotion of Gender Equality: UBA’s Group Managing Director, Oliver Alawuba, highlights the bank’s commitment to gender equality through collaboration with the Affirmative Finance Action for Women (AFAWA) protocol. This involves providing loans to women-owned SMEs at concessional rates, aiming to bridge the significant financing gap faced by women in Africa, amounting to $42 billion.
5. Support for Green Finance Projects: The partnership extends the Bank’s Green Finance propositions across Africa. By facilitating financing for environmentally friendly projects, UBA contributes to sustainable development and aligns with global efforts to address climate change.

This collaboration reflects a monumental step towards economic growth and development in Africa, emphasizing the catalytic role SMEs play in driving innovation, creating jobs, and boosting overall economic progress. The initiative not only aligns with UBA’s commitment to supporting the African Continental Free Trade Area (AfCFTA) but also underscores the importance of public-private partnerships in advancing economic prosperity on the continent.

As UBA, one of the largest employers in the financial sector, takes this stride to empower and uplift SMEs, it sets a positive precedent for other African businesses to engage in strategic partnerships that contribute to the overall advancement of the continent’s economic landscape.

Source iReporteronline