United Bank for Africa (UBA), one of Africa’s leading financial institutions, has reaffirmed its commitment to empowering Small and Medium Enterprises (SMEs) across the continent with a massive $6 billion investment.
This announcement comes as UBA signs a partnership deal with the African Guarantee Fund (AGF), aimed at bolstering SMEs and fostering economic growth.
Under the partnership, the African Guarantee Fund will provide a $50 million Portfolio Guarantee to support SMEs across 20 African countries.
This guarantee will serve as a crucial catalyst for UBA’s interventions in SME businesses, with a particular focus on women-led enterprises and green finance projects.
During the partnership signing ceremony held at UBA’s Head Office in Lagos, Group Managing Director, Oliver Alawuba, expressed the bank’s unwavering commitment to supporting SMEs in Africa.
He emphasized UBA’s dedication to promoting gender equality by extending financial support to women-founded and managed businesses.
Alawuba highlighted that the partnership aligns with UBA’s vision of empowering businesses, fostering innovation, and driving sustainable growth across Africa.
He also underscored UBA’s focus on advancing the African Continental Free Trade Agreement (AfCFTA) initiative, which aims to enhance economic integration throughout the continent.
The collaboration between UBA and AGF is a strategic move to de-risk SMEs, providing them with greater access to financing and technical capacity development.
Jules Ngankam, the Group CEO of the African Guarantee Fund, emphasized the importance of supporting SMEs, which form the backbone of African economies, accounting for 90% of the private sector and 60% of all jobs.
This partnership represents a significant step towards bridging the financing gap for SMEs in Africa, fostering economic resilience, and driving sustainable development across the continent.