United Bank for Africa and African Guarantee Fund have signed a partnership that will benefit Small and Medium Enterprises across 20 African countries.
In a statement by UBA, the African Guarantee Fund under this agreement will support and guarantee SMEs with a $50m Portfolio Guarantee as well as facilitate extensive capacity development for the bank’s customers who run small businesses across the continent, paying special attention to women-led businesses and green finance projects.
The Group Managing Director of UBA, Oliver Alawuba, stated thus:
“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. 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’m 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.”
“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 $42bn”