"Apply Now": UBA Partners AfCTA to Give Nigerian, Other African Entrepreneurs $6 Billion Loan
- The United Bank for Africa (UBA) is giving small businesses in Nigeria and Africa a $6 billion loan
- The loan facility partners with the Africa African Continental Free Trade Area (AfCTA) secretariat
- The bank stated that small businesses will have access to the loan over the next three years
PAY ATTENTION: Fuel your passion for sports with SportBrief.com. Click here to discover the latest sports updates!
The United Bank for Africa (UBA) has announced plans to provide financing to support and enhance the activities of Small and Medium Scale Enterprises (SMEs) across Africa.
Through the initiative, the bank will allow SMEs to access funds for small businesses specialising in critical sectors such as agro-processing, health, automotive, transport, and logistics.
Source: Getty Images
The loan will support SMEs to scale up operations
The initiative is courtesy of UBA's recent partnership with the African Continental Free Trade Area (AfCTA) secretariat to provide about $6 billion in financing in the next three years.
PAY ATTENTION: Share your outstanding story with our editors! Please reach us through info@corp.legit.ng!
The bank signed the agreement with AfCTA during the 30th Afreximbank Annual Meeting held in Accra, Ghana.
BusinessDay reports that the agreement binds UBA and AfCTA to encourage the growth of SMEs operating in four sectors under the partnership that are mostly import-dependent by giving technical and financing solutions for intra-Africa/domestic alternatives.
According to UBA's Managing Director, Muyiwa Akinyemi, the bank is committed to supporting the growth/development of SMEs in Africa.
He said the initiative aligns with its focus on small businesses as catalysts for Africa's development.
UBA promises to use tech to lift SMEs
The UBA boss said the bank will go beyond financing to provide non-financial services to the SMEs to develop their capacity for growth across the 20 African countries present and build sustainable practices.
He said the bank will leverage technology to deliver its financing activities to the beneficiaries and that the agreement will spur the continent's development as a top bank in Africa.
UBA's group head of marketing and corporate communications, Alero Ladipo, said the $240,000 financing by the bank will come in the form of working capital loans and asset finance loans to position the businesses for growth and success.
She explained that the small businesses in the sectors of agro-processing, automotive, health, transport, and logistics would access a working capital loan by way of overdrafts and short-term loans with a maximum value of $120,000 in each of their country's local currency and asset finance loans of about $120,000 in the local currency of the debtor to use to acquire operational assets and equipment to scale their businesses.
Ladipo revealed that the move aligns with the bank's vision to stimulate economic development in Africa by empowering small businesses to provide jobs and enhance intra-Africa trade.
She said the bank will also provide training and resources for small business owners to equip them with the knowledge and skills required to thrive in a competitive environment.
Bank customers demand N52.53bn refund.
UBA is among the top Nigerian banks recently receiving about 4.57 million customer complaints demanding an N52.53 billion refund.
About seven of Nigeria's top commercial banks have reported receiving 4.57 million customer complaints in a year from January 1 to December 31, 2022.
The 2022 complaint figures represent an increase compared to customer complaints from the surveyed banks in 2021.
These figures were captured in the banks' annual financial reports, which were submitted to the Nigerian Exchange.
11 Banks approve N21.1trn loans & advances to their Customers
Also, Nigerian bank customers searching for funding have borrowed from 11 commercial banks, totaling N21.1 trillion as of the end of 2021.
The current level is an N2.9 trillion or 16.2% increase compared to the N18.2 trillion loans and advances in 2020.
The figures are according to the analysis of the banks' 2021 financial year results submitted to the Nigerian exchange.
The 11 banks surveyed are First City Monument Bank (FCMB), Guaranty Trust Holding Company (GTCO), Zenith Bank, Wema, Unity, United Bank for Africa (UBA), Sterling Bank, and Stanbic Bank, Ecobank, Unity Bank, Fidelity and Access Bank.
Access, Zenith lead list of banks with highest loans and Advances to Customers in 2022
Legit.ng reported that Access Bank provided customers with the highest loans and advances in 2022, based on data from audited reports of 11 commercial banks listed on the Nigerian exchange.
The data revealed that the 11 banks collectively increased their customer loans by 18.2%, rising from N17.91 trillion in 2021 to N21.17 trillion in 2022.
The banks surveyed include Access Bank, Zenith Bank, United Bank for Africa, First Bank, Guaranty Trust Bank, Stanbic IBTC, First City Monument Bank, Fidelity Bank, Union Bank, Sterling Bank, and Wema Bank. Read more:
Source: Legit.ng
