Business

UBA to deepen SMEs, signs new deal with AFD

Published

6 years ago

March 19, 2018

Spread The News

United Bank for Africa (UBA) has entered into another agreement with Agence Française de Development (AFD), France’s public and solidarity-based development bank to grow activities of Small and Medium Enterprises (SMEs) in Africa.

Recall that three weeks ago, the bank signed a similar agreement worth $100 million with the world’s largest development finance institution, China Development Bank (CDB).

The new partnership, an off-shoot of the strategic relationship both institutions have had over the years, will enhance UBA’s capacity to finance SMEs in Nigeria and across the other 19 African countries where the bank currently operates, whilst ensuring AFD uses the financial structure availed by UBA to reach out to many SMEs across Africa.

According to findings by National Daily, the latest Framework Agreement with AFD will utilise the EURIZ and ARIZ schemes offered by AFD to facilitate the financing of SMEs and startups across the 20 countries where UBA presence is felt across Africa.

Speaking on the latest arrangement, Group Managing Director/CEO, Mr. Kennedy Uzoka, said the partnership with Agence Française de Development(AFD) would enable UBA reach the various markets in its countries of operation presence countries and also empower the SMEs across Africa through the provision of financial access, critical to their survival.

In her remarks at the signing ceremony, Deputy Director, Sub-Saharan Africa, Agence Française de Development (AFD), Mrs. Cecile Couprie, noted that “It is an honour for us at AFD to work with UBA to promote the development of African countries. Working with UBA will assist us to contribute to improving the economic and social conditions in Africa of which the growth of SMEs is essential.”

It was also gathered that the key reason for the Framework deal is to deepen growth assistance of budding small and medium enterprises (SMEs) in Africa.

According to source inside the bank, fund would among others, be channeled to business development trainings for SMEs which will be followed up with adequate funding of SMEs that met given terms and conditions for accessing the facility within the first seven years.