African Guarantee Fund and UBA Group Partner to Fuel SME Growth with $100 Million Funding Initiative

Exciting news for SMEs across Africa! The African Guarantee Fund (AGF) and UNITED BANK FOR AFRICA (UBA) have joined forces to inject $100 million into the SME business space. This partnership aims to provide crucial funding support to small and medium enterprises (SMEs) operating in 20 African countries where UBA has a strong presence.

Under this collaboration, UBA will offer $100 million in new loans to SMEs, facilitated by a $50 million Master Portfolio Guarantee provided by the AGF. This initiative also includes comprehensive capacity development programs designed to empower SMEs and enhance their business operations.

In a statement, Jules Ngakam, Group CEO of African Guarantee Fund, emphasized the pivotal role SMEs play in driving economic growth across the continent. He highlighted the challenges SMEs face in accessing financing and expressed confidence that this partnership will help de-risk SMEs, particularly those led by women and operating in the green sector.

UBA’s Group Managing Director, Oliver Alawuba, reiterated the bank’s commitment to supporting SMEs in Africa. Leveraging UBA’s extensive network and expertise, the bank aims to offer value-added propositions to women-owned SMEs through initiatives like AFAWA (Affirmative Finance Action for Women in Africa), addressing the financing gap facing women entrepreneurs.

Additionally, the partnership will provide capacity development opportunities for SMEs, including free or highly discounted training programs. The partners also plan to engage with governments to create more business-friendly environments and expand UBA’s Green Finance propositions across Africa.

This collaboration follows UBA’s announcement of a $6 billion commitment to SMEs under the Africa Continental Free Trade Area (AfCFTA) initiative, demonstrating the bank’s dedication to driving economic empowerment and inclusive growth.

We’re excited to share this news with our audience, highlighting the significant funding opportunities available to SMEs across Africa.

Stay tuned for more updates on how this partnership will impact SMEs and contribute to economic development in Africa.