UBA To Finance Women-Led SMEs, Green Finance With $100m

Africa’s global bank, United Bank for Africa (UBA) Plc. and African Guarantee Fund (AGF), have entered into an agreement. The two institutions on Monday, March 11th, 2024 signed a partnership that ensures that UBA provides $100 million in new loans to Small and Medium Enterprises (SME) and business owners across the 20 African countries where the bank has presence.

Group Managing Director/CEO, United Bank for Africa(UBA), Mr. Oliver Alawuba and Group CEO, African Guarantee Fund, Mr Jules Ngankam; during signing of partnership between UBA and AGF where the latter will guarantee $50m of UBA’s new $100m Loans to SMEs operating across the 20 African countries, in Lagos on Monday.

The AGF under this agreement will support and guarantee SMEs with $50 million Portfolio Guarantee as well as facilitate extensive capacity development for the Bank’s teeming customers who run small businesses across the continent, paying special attention to women-led businesses and green finance projects.

Deputy Managing Director, African Guarantee Fund(AGF), Ms Sibi Lawson; Group Managing Director/CEO, United Bank for Africa(UBA), Mr. Oliver Alawuba; Group CEO, African Guarantee Fund, Mr Jules Ngankam; and Group Deputy Managing Director, UBA, Mr. Muyiwa Akinyemi, during signing of partnership between UBA and AGF where the latter will guarantee $50m of UBA’s new $100m Loans to SMEs operating across the 20 African countries, in Lagos on Monday

UBA’s Group Managing Director, Oliver Alawuba, who spoke during the partnership signing ceremony at the UBA Head Office in Lagos, said; “As Africa’s Global Bank, UBA remains committed towards supporting SMEs in Africa, especially to women founded and managed businesses, given its robust network, which is spread across the 20 countries in Africa and major global financial capitals.”

“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.”

“Moreover, our commitment to promoting gender equality in our business is reflected in our collaboration with the Affirmative Finance Action for Women (AFAWA) protocol. Through this we will provide loans to women-owned SMEs at more concessional rates, with customer friendly collateral terms, aiming to bridge the significant financing gap faced by women in Africa, amounting to $42 billion.”

Deputy Managing Director, African Guarantee Fund(AGF), Ms Sibi Lawson; Group Managing Director/CEO, United Bank for Africa(UBA), Mr. Oliver Alawuba; Group CEO, African Guarantee Fund, Mr Jules Ngankam; and Group Deputy Managing Director, UBA, Mr. Muyiwa Akinyemi, during the signing of the partnership between UBA and AGF where the latter will guarantee $50m of UBA’s new $100m Loans to SMEs operating across the 20 African countries, in Lagos on Monday

Similarly, capacity development platforms are to be extended for free or at highly discounted rates while the partners will engage with governments across Africa to create and activate business environments that are more women-friendly. It will also expand the Bank’s Green Finance propositions across Africa.

Also, 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.”

“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. Through this guarantee facility and the technical capacity development grant support, we will de-risk SMEs with a priority on those that are owned or led by women and those that are within the green sector.”

This partnership is sequel to the announcement made by United Bank for Africa (UBA) Plc, and Africa Continental Free Trade Area (AfCFTA) Secretariat in September 2023 which will help the Bank drive its $6Bn commitment to SMEs across Africa under the AfCFTA initiative.