By Modupe Gbadeyanka
A $100 million seven-year loan agreement to finance the development of Small and Medium Enterprises (SMEs) in Africa has been sealed by United Bank for Africa (UBA) Plc and China Development Bank (CDB).
The credit facility is expected to complement the recovery of economic activities in the country and also further encourage African entrepreneurship.
The loan is expected to enhance UBA’s capacity to provide access to finance to small businesses across the 19 African countries the lender currently operates.
Commenting on the development, the Group Managing Director/CEO of UBA Mr Kennedy Uzoka, said, “We are excited to partner with China Development Bank (CDB), the Development Financial Institution of the Chinese government, on this historic transaction, as we strongly believe that the facility will serve as a catalyst to the sustainable development of commerce and industry in Africa through provision of critical financial interventions to SMEs across our presence countries.”
On his part, Chairman of UBA, Mr Tony Elumelu, noted that the fund will boost small and medium scale enterprises across Africa, noting that CDB’s interest in supporting SMEs aligns with UBA’s vision in growing business across Africa.
“In UBA, CDB would have an enduring partner in reaching out to Africans as UBA provides banking services to over 14 million people across 20 African countries, and like CDB, UBA funds critical infrastructural projects on the continent,” Mr Elumelu said.
Also commenting, President of CDB, Mr Zheng Zhijie, described the deal as the beginning of cooperation between UBA and CDB that would translate into an enduring business relationship between China and Africa and Nigeria in particular.
“UBA is a leading and dependable bank not only in Nigeria but Africa, and this partnership will help our Bank to accelerate its business objectives in Africa, more importantly as we deepen our investment in energy, road and rail constructions, infrastructure in Africa,” Mr Zhije said.
