UBA has joined forces with the African Continental Free Trade Area (AfCFTA) to invest $6 billion in African SMEs over the next three years. This partnership seeks to address the $331 billion financing gap faced by these businesses across the 20 African countries where UBA operates. The initiative targets key sectors such as transport and logistics, agriculture and agribusiness, automotive, and pharmaceuticals. By enhancing access to finance and markets, the program aims to accelerate import substitution and boost intra-African trade.
According to Muyiwa Akinyemi, Deputy Managing Director of UBA, this partnership with AfCFTA is vital for fostering the growth of African SMEs, which are crucial for the continent’s industrialisation. He highlighted that the agreement is designed to address the enduring issues of limited financial support and market access, which have hindered the potential of SMEs. Despite contributing 38% of regional GDP, these businesses continue to face significant financing shortfalls. The collaboration with AfCFTA is expected to reduce this gap, enabling SMEs to fully leverage the opportunities presented by the free trade area.
AfCFTA Secretary General Wamkele Mene says the Secretariat is committed to supporting SMEs as key drivers of African economies. It recognizes the financing challenges these businesses face and plans to narrow this gap through this strategic partnership. The initiative aims to strengthen financial inclusion and promote sustainable economic development in Africa by fostering the growth and expansion of African SMEs.