The United Bank of Africa (UBA), a powerhouse in African banking, is set to soar with a game-changing $175 million financial package approved by the African Development Bank Group (AfDB). This substantial funding, comprising a $150 million line of credit and a $25 million trade finance line, is poised to propel UBA’s operations across 20 African nations, catering to a staggering 18 million customers.
Meanwhile, AfDB unleashes a colossal $1.4 billion financing package targeting the development of industrial parks and special economic zones in Ethiopia. Aligned with the ambitious “Industrialize Africa” agenda, the package includes a $1 billion sovereign-backed loan to the Ethiopian government and a $400 million private sector loan to the Eastern and Southern Africa Trade and Development Bank (TDB). This strategic move is set to create over 200,000 jobs, boost exports, and attract foreign investment, fostering economic recovery post-COVID-19.
The financial injection into UBA is not just about numbers; it’s a strategic move to empower small and medium enterprises (SMEs) and vital sectors like agriculture, health, education, and infrastructure. The AfDB’s visionary Director of Financial Sector Development, Stefan Nalletamby, emphasizes the significance of this partnership, stating, ‘By providing long-term funding in local and foreign currencies, we are helping UBA increase its outreach to SMEs and corporates, thereby contributing to job creation and income generation.’
UBA’s Group Managing Director and CEO, Kennedy Uzoka, echoes this sentiment, expressing gratitude for the AfDB’s support. He emphasizes the broader impact, stating, ‘This partnership reaffirms the strong relationship between the AfDB and UBA, and also underscores the bank’s commitment to Africa’s development. The financial package will enhance our capacity to serve our customers across Africa and beyond, while also supporting the AfDB’s vision of transforming Africa through trade.’
In essence, this financial infusion is not just about strengthening balance sheets; it’s a bold step towards driving economic development in Africa, fostering innovation, customer-centricity, and delivering best-in-class service. Stay tuned as UBA charts a course for Africa’s financial landscape, backed by the AfDB’s strategic vision and substantial support!”
Source: Tekedia