The Africa Continental Free Trade Area (AfCFTA) Secretariat has signed a multi-million deal agreement with UBA to support Small and Medium Enterprises (SMEs) in Africa.
In a deal signed in Ghana’s capital Accra on the sidelines of the 30thAfreximbank Annual Meeting, UBA will offer financing of upto USD 6.0 billion over the next three years to the targeted Small and Medium Enterprises (SMEs).
By the agreement, the parties are to promote the development of SMEs operating in Four sectors under the 1st phase of the partnership which are largely import dependent by providing technical and financing solutions for intra-African/domestic alternatives.
These economic sectors are Agro-processing, Automotive, pharmaceuticals, Transport and Logistics. One of the key initiatives of the AfCFTA is to improve access to finance and markets for SMEs to encourage their growth and contribution to the socio-economic development of Africa.
The Deputy Managing Director of UBA, Muyiwa Akinyemi, said the lender remains committed to supporting the growth/development of SMEs across Africa. This is in line with the bank’s strategic focus on the SME segment being a catalyst to economic development of Africa.
“Under this partnership we will go beyond just financing to provide non-financial services to these SMEs to develop the capacity for growth across the 20 African countries that we are present and build sustainable business practices,” said Muyiwa.
“We shall also be leveraging on technology to deliver our financing activities to the beneficiaries and this platform provides us with a unique opportunity to stimulate the development of the continent as Africas’ Global Bank”.
On his part, the Secretary-General of the AfCFTA, H.E. Ambassador Wamkele Mene, who spoke on the agreement with UBA, emphasized the need to catalyze Africa’s industrialization and boost intra-Africa trade to improve the socio-economic well-being of the continent and its people, which he noted was a key factor behind the partnership.
“The Secretariat is committed to supporting SMEs as it recognizes the financing gap SMEs face on the continent and intend to mitigate this gap through this partnership. The identified areas of collaboration with UBA will provide the desired impetus for these SMEs to achieve the desired growth in their intra-Africa/export trading capabilities, which aligns with the objectives of the AfCFTA.”
The AfCFTA is one of the flagship projects of Agenda 2063. 54 African Union member states have signed the AfCFTA agreement as of July 2023. The expected income boost gain in Africa by 2035 is expected to improve by 7 per cent to USD 450 billion under the agreement.
Kenya in the final stages of implementing AfCFTA (kenyanwallstreet.com)
