UBA Joins Forces with AfCFTA to Support SMEs

The United Bank of Africa (UBA)  has partnered with the African Continental Free Trade Area (AfCFTA) to offer up to Ksh 20,000,000 in financing for Small and Medium-sized Enterprises (SMEs) across all 20 African countries that UBA bank operates in. This partnership targets Africa-based registered SMEs in sectors including agro-processing, transport and logistics, pharmaceuticals and automotive.

“This partnership is all about empowering SMEs, the backbone of our economy, to grow, expand their businesses, and drive economic integration across Africa.” UBA bank noted in a statement.

The partnership offers asset finance loans of up to Ksh 20,000,000 which will be used to acquire equipment or property, with repayments spread over four years, in monthly or quarterly installments. Additionally, the collaboration will provide working capital loans in the form of short-term loans and overdrafts of up to Ksh 20,000,000 to help with cash flow needs, with a maximum term of 12 months. The short term loans will have fixed monthly installments, while the overdrafts will have bullet repayment with quarterly reviews.

UBA bank serves as an ideal partner for the African Continental Free Trade Area due to its competitive interest rates, notably with its special rates for women, and flexible repayment options. The bank also covers almost half of Africa, with UBA branches available in 20 African countries, enabling it to cater to the different sectors across the continent. The Nigerian billionaire Tony Elumelu-owned lender further supports import substitution and intra-African trade, which plays a vital role in SME growth.

In May, UBA bank provided UBA Kenya with $282 million (Sh37.5 billion) for lending to small and medium-sized enterprises (SMEs) over the next three years. This amount was part of the $6 billion (Sh789 billion) SME funding agreement that UBA signed with the African Free Trade Area in 2023 to disburse to small businesses across Africa. The transaction coincided with UBA Bank celebrating 75 years since its formation in 1949 in Nigeria, while UBA Kenya marked 15 years in the country.