UBA Commits $6bn to SMEs Through AfCFTA Agreement, Marks 75 Years

…As the bank sets for N500bn recapitalisation

United Bank for Africa (UBA) has solidified its commitment to the growth of Small and Medium Enterprises (SMEs) by signing a $6 billion funding agreement with the African Free Trade Area (AfCFTA).

In addition, UBA is set to seek shareholders’ approval for its N500 billion recapitalisation plans this Friday, even as the financial intuition kicked off its year long 75 year anniversary activities in Lagos yesterday.

The Pan African bank’s Group Managing Director, Oliver Alawuba, who made the disclosures at a global press conference held at UBA’s headquarters in Lagos, yesterday, explained that this strategic move is expected to be instrumental in achieving UBA’s long-term objectives and enhancing its operational capabilities across the continent.

The focus on SME support through the AfCFTA agreement underscores UBA’s strategy to enhance business financing capacity across Africa.

Alawuba explained that funds would be sourced from deposits and Development Finance Institutions (DFIs), with the goal of empowering businesses to grow and generate foreign exchange.

“Our vision is to be the role model for African businesses, connecting Africa to the world and the world to Africa,” he stated. The $6 billion commitment aims to substitute imports and bolster local economies across the 20 countries where UBA operates.

On recapitalisation, he noted that the development is in line with the Central Bank of Nigeria’s (CBN) directive to strengthen the banking industry, which is crucial for Nigeria’s economic goal of becoming a $1 trillion economy.

Alawuba, who lauded the CBN’s recapitalisation initiative, highlighted its importance in ensuring Nigerian banks are sufficiently liquid to compete in global markets and boost intra-African trade.

He, therefore, assured stakeholders that UBA is well-prepared to meet these new requirements, emphasizing the bank’s intent to expand its international footprint rather than pursue an acquisition spree.

Celebrating its 75th anniversary, UBA kicked off a year-long series of events in Lagos. Reflecting on the bank’s journey, Alawuba praised UBA’s resilience and financial strength, particularly in the face of economic challenges.

He emphasized the bank’s dedication to innovation, digital transformation, and corporate social responsibility (CSR). UBA’s CSR initiatives focus on education, healthcare, entrepreneurship, and environmental sustainability, making a significant impact across the continent.

“We have over 25,000 staff and serve over 35 million customers through multiple channels,” Alawuba noted, highlighting UBA’s expansive network of over 350,000 POS terminals, 2,000 ATM terminals, 1,000 business offices, and 19.7 million card customers. This infrastructure supports UBA’s vision of being the premier bank for capital flows, trade, and investments between Africa and the rest of the world.”

Also, speaking at the event, the Deputy Managing Director of the financial institution, Muyiwa Akinyemi, reiterated UBA’s commitment to innovation and digital transformation, essential for future growth and competitiveness.

He emphasized the bank’s focus on enhancing customer experience and maintaining its position as a forward-thinking institution dedicated to global sustainability principles.

As UBA celebrates its 75-year milestone, it remains steadfast in its mission to expand its presence, seize growth opportunities, and deliver value to all stakeholders.