United Bank for Africa (UBA) Plc, a pan-African banking group and China
Development Bank (CDB), the world’s largest development finance
institution, on February 27, 2018 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 (SMEs) 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, 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,” says Group Managing Director/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
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
“ Elumelu said. He expressed that he would like to see an even stronger
relationship grow with CDB and UBA as well as
with China and Nigeria.
Also
commenting, the President of CDB, Mr. Zheng Zhijie, said the agreement
is 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,” Zhije said
UBA,
Africa’s global bank, is one of the largest commercial banks in Nigeria
incorporated which
operates in 19 African countries whilst providing a wide range of
products and services. UBA is a leading bank in infrastructure financing
particularly in the Power, Telecoms and Transport sectors. UBA leads in
social infrastructure such as hospital and education
facilities to various countries in Africa. In Nigeria, the bank
operates in each of the country’s 36 states, helping to deepen financial
inclusion through its brick and mortar network as well as through its
cutting edge digital platforms. Globally, UBA has
over 1,000 branches and customer touch points, serving over 14 million
customers.
CDB,
funded in 1994, is the world’s largest development finance institution
and, the largest
Chinese bank for foreign investment and financing cooperation. CDB
provides medium-to-long-term financing facilities that serve China’s
major long-term economic and social development strategies. By the end
of 2016, its assets grew to RMB 14.34 trillion,
a balance of loans of RMB 10.32 trillion. CDB currently has 37 primary
branches and 3 secondary branches on the Chinese mainland, one offshore
branch in Hong Kong and five representative offices in Cairo, Moscow,
Rio de Janeiro, Caracas and London
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