China Development Bank (CDB), the world’s largest development finance institution and United Bank for Africa (UBA) Plc and announced the signing of a $100 million seven-year loan agreement to finance the development of small and medium enterprises (SMEs) in Africa.
The $100 million loan will enhance UBA’s capacity to provide access to finance to small and medium enterprises across the 19 African countries where UBA currently operates.
“We are excited to partner with China Development Bank (CDB), the Development Financial Institution of the Chinese Government, on this historic transaction.
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,” says Group MD/CEO, UBA Plc, Mr. Kennedy Uzoka.
Uzoka noted that this line of credit is timely, as it should complement the recovery of economic activities.
It will also further encourage African entrepreneurship particularly as the funds will be applied to SMEs, which are important for inclusive growth on the continent.
Speaking during the signing ceremony, Chairman of UBA Plc, Mr. Tony Elumelu said 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.