UBA Bank and AfCFTA Partner to Empower African SMEs
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The United Bank for Africa (UBA Bank) has joined forces with the African Continental Free Trade Area (AfCFTA) to provide up to Ksh 20,000,000 in funding for Small and Medium-sized Enterprises (SMEs) throughout the 20 African nations where UBA operates.
This collaboration aims to support Africa-based registered SMEs in various sectors such as agro-processing, transport and logistics, pharmaceuticals, and automotive.
“This partnership is all about empowering SMEs, the backbone of our economy, to grow, expand their businesses, and drive economic integration across Africa.” UBA bank noted in a statement.
The partnership includes asset finance loans of up to Ksh 20,000,000, intended for acquiring equipment or property, with repayment terms spread over four years, either monthly or quarterly.
Furthermore, the initiative will offer working capital loans in the form of short-term loans and overdrafts of up to Ksh 20,000,000 to assist with cash flow needs, with a maximum duration of 12 months. The short-term loans will have fixed monthly installments, while the overdrafts will feature bullet repayment with quarterly reviews.
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UBA is a suitable partner for the African Continental Free Trade Area due to its competitive interest rates, particularly its special rates for women, and flexible repayment options.
The bank’s presence in nearly half of Africa, with branches in 20 countries, enables it to serve various sectors across the continent. Owned by Nigerian billionaire Tony Elumelu, the bank also supports import substitution and intra-African trade, which are crucial for SME growth.
In May, UBA provided UBA Kenya with $282 million (Sh37.5 billion) for lending to SMEs over the next three years. This amount is part of the $6 billion (Sh789 billion) SME funding agreement that UBA signed with the African Free Trade Area in 2023 to support small businesses across Africa.
This transaction coincided with UBA Bank celebrating its 75th anniversary since its establishment in 1949 in Nigeria, while UBA Kenya marked 15 years in the country.
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