UBA to Begin Distributing $100 Million Loan to Small Businesses Amid Hardship

UBA to Begin Distributing $100 Million Loan to Small Businesses Amid Hardship

  • The United Bank for Africa, alongside the African Guarantee Fund, signed an agreement for the bank to disburse $100 million to Nigerians
  • The loan will be distributed in Nigeria and other countries where the bank has branches across Africa
  • It stated that the funding will support SMEs in Africa, especially to women founded and managed businesses

Legit.ng journalist Zainab Iwayemi has over three years of experience covering the Economy, Technology, and Capital Market.

United Bank for Africa (UBA) and the African Guarantee Fund (AGF) have partnered to guarantee that UBA will lend an additional $100 million to small and medium-sized enterprises (SMEs) and entrepreneurs in each of the 20 African nations where the bank is present.

UBA to distribute money
UBA will lend $100 million to small and medium-sized enterprises. Photo Credit: UBA
Source: UGC

By this agreement, the AGF will guarantee and support SMEs with a $50 million portfolio guarantee.

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Leadership reported that this will also enable the bank's numerous customers who operate small businesses throughout the continent to develop their capacities, focusing on green finance initiatives and women-led enterprises.

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Speaking at the partnership signing ceremony between the two organisations on Monday at the UBA Head Office in Lagos, Oliver Alawuba, the group managing director of UBA, stated that, as Africa's global bank, UBA is dedicated to assisting SMEs in the continent leveraging its extensive network, which spans 20 African countries and essential international financial hubs.

He said that this mainly speaks to businesses founded and run by women.

Alawuba said:

“This guarantee will catalyse the bank’s intervention for SME businesses, women-led and environment-friendly businesses, enabling us to extend our reach and impact further. 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.”

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“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,” he further said.
“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,”

During the signing event, Jules Ngankam, the group CEO of the African Guarantee Fund, stated that the collaboration between two pan-African organisations leading the way in SMEs' development and expansion will significantly propel economic progress throughout the continent.

This collaboration is a follow-up to the September 2024 statement made by the Africa Continental Free Trade Area (AfCFTA) Secretariat and United Bank for Africa (UBA) Plc, which will assist the bank in advancing its $6 billion commitment to SMEs throughout Africa as part of the AfCFTA effort.

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UBA takes over Dubai-based stallion group's assets

Legit.ng reported that the United Bank for Africa (UBA) has taken over the assets of Stallion Nigeria Limited and its affiliates in Lagos, Port Harcourt, and Kano.

This followed a Federal High Court order in Lagos in an alleged N156 billion debt suit against the company.

A report said the bank's receiver and court bailiffs, accompanied by police officers on Friday, November 10, 2023, executed the orders in three cities.

Source: Legit.ng

Authors:
Zainab Iwayemi avatar

Zainab Iwayemi (Business Editor) Zainab Iwayemi is a business journalist with over 5 years experience reporting activities in the stock market, tech, insurance, banking, and oil and gas sectors. She holds a Bachelor of Science (B.sc) degree in Sociology from the University of Ilorin, Kwara State. Before Legit.ng, she worked as a financial analyst at Nairametrics where she was rewarded for outstanding performance. She can be reached via zainab.iwayemi@corp.legit.ng

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