UBA to disburse over N100bn loan to Nigerians, other African SMEs

United Bank for Africa (UBA) has signed a partnership agreement with the African Guarantee Fund (AGF) to provide a $100 million(N162.5 billion) new loan to Small and Medium Enterprises (SME).

Business owners across the 20 African countries where the bank has a presence are set to benefit from the initiative.

UBA’s Group Managing Director, Oliver Alawuba, who spoke during the partnership signing ceremony between both institutions at the UBA Head Office in Lagos, on Monday, March 11 said that the agreement is a show of commitment towards supporting SMEs in Africa.

He also revealed that the loans will pay special attention to women-led businesses and green finance projects, Vanguard reports.

His words: “This guarantee will serve as a catalyst for the bank’s intervention for SME business, women-led and environment friendly businesses, enabling us to further extend our reach and impact.

"Additionally, the extensive capacity development initiatives planned for our SME customers across 20 African countries align with our vision to empower businesses, drive innovation, and foster sustainable growth.

“I am particularly excited about our focus on advancing the AfCFTA initiative, reaffirming UBA’s $6 billion commitment to SMEs across Africa. This initiative, announced in September last year, demonstrates our dedication to supporting the economic integration of our continent."

Punch reports that Alawuba revealed that the partnership will give birth to capacity development platforms provided for free or at highly discounted rates for business owners.

Also speaking, the Group CEO of African Guarantee Fund, Jules Ngankam, said the partnership between two pan-African institutions who are both at the forefront of catalysing growth and development of SMEs will significantly drive economic growth across the continent.

He said: “Small and medium enterprises despite being the backbone of all African economies – they account for 90% of the private sector and 60% of all jobs – are perceived as risky and therefore have limited access to financing."