AGF and UBA Partner to Boost African SMEs with $100M

The African Guarantee Fund (AGF) and the United Bank for Africa (UBA) have forged a partnership aimed at bolstering Small and Medium Enterprises (SMEs) across 20 African countries. Under this collaboration, UBA pledges $100 million in new loans to SMEs and business owners, with AGF providing a $50 million Portfolio Guarantee to support and guarantee these enterprises.

This groundbreaking agreement underscores UBA’s commitment to fostering economic growth and empowerment across the continent, particularly for women-led businesses and green finance projects. Oliver Alawuba, Group Managing Director of UBA, emphasised the bank’s dedication to supporting SMEs, citing its extensive network spanning 20 African countries and global financial hubs.

Also Read: Afrexim Bank Launches “African Collaborative Transit Guarantee Scheme” To Make Cross-Border Trade Seamless

Alawuba highlighted the catalytic role of this guarantee in propelling UBA’s interventions for SMEs, stressing the importance of empowering businesses, driving innovation, and fostering sustainable growth. He also reiterated UBA’s $6 billion commitment to SMEs across Africa, reaffirming its dedication to the economic integration of the continent.

The partnership extends beyond financial support, with a focus on extensive capacity development initiatives for SMEs across Africa. Special attention will be given to advancing the AfCFTA initiative and promoting gender equality through collaborations like the Affirmative Finance Action for Women protocol.

Jules Ngankam, Group CEO of the African Guarantee Fund, pointed out the transformative impact of the partnership on SMEs, particularly those owned or led by women and those operating in the green sector. By de-risking SMEs and providing technical capacity development support, the partnership aims to drive economic growth and job creation across the continent.

This strategic partnership builds upon UBA’s previous commitment to SMEs under the AfCFTA initiative, aligning with efforts to promote economic integration and prosperity in Africa. With UBA’s extensive reach and AGF’s specialised guarantee support, the partnership holds promise for unlocking the full potential of African SMEs and driving inclusive growth across the continent.