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In a landmark move, United Bank for Africa Plc (UBA), a leading pan-African financial services group led by Nigerian businessman Tony Elumelu, has inked a Memorandum of Understanding (MoU) with the African Continental Free Trade Area Secretariat (AfCFTA) to deploy $6 billion, aimed at fueling the growth of small and medium-sized enterprises (SMEs) across Africa.
Under the terms of this partnership, UBA and AfCFTA are dedicated to fostering the development of SMEs in four key sectors during the initiative’s first phase. These import-dependent sectors — include agro-processing, automotive, pharmaceuticals, and transport and logistics.
UBA’s Head of SME Banking unveils $6-billion AfCFTA partnership for pan-African SMEs
Babatunde Ajayi, the head of SME banking at UBA, spoke about the ambitious initiative during the Nigerian Canadian Business Association Business 2023 Roundtable held in Lagos. The event, themed “Enabling Growth by Unlocking Access to Capital, Technology, And Markets,” emphasized the need to boost intra-African trade, which currently remains below 20 percent.
“I’m the one driving the newly signed $6 billion in partnership with the AfCFTA to fund SMEs across Africa. We are focusing on four sectors – agro-processing, automotive, pharmaceuticals, and transport and logistics,” Ajayi said. He further emphasized, “Across Africa, what we found are that these sectors have the highest potential for import substitution, and those are the sectors we can easily make huge gains within Africa.”
Driving economic empowerment: UBA and AfCFTA’s $6-billion initiative for SMEs
UBA, a leading player in Nigeria’s financial services sector with an extensive footprint across 24 countries, holds a top position in Africa’s financial landscape. The bank’s partnership with AfCFTA underscores its commitment to empowering African businesses.
Elumelu, the Nigerian tycoon and leader of UBA, who owns a 7.39-percent stake in the bank, stands out not only as one of the wealthiest investors on the Nigerian Exchange but also as one of Nigeria’s richest individuals. His visionary approach to business has positioned UBA as a key player in driving economic growth and fostering financial inclusion across Africa.
In a strategic move to empower African businesses, UBA partnered with the AfCFTA secretariat in September, unveiling a $6-billion initiative to bolster SME growth across the continent. Under this partnership, UBA and AfCFTA are committed to developing SMEs in four key sectors — agro-processing, automotive, pharmaceuticals, and transport and logistics.
