The United Bank for Africa (UBA) has secured $150 million trade facility from the African Export-Import Bank (Afreximbank).
It is a component of Afreximbank’s Ukraine Crisis Adjustment Trade Financing Programme for Africa (AKAFPA).
The signing ceremony for the trade finance was concluded, by both institutions, on the sidelines of the ongoing Intra-African Trade Fair, organised by Afreximbank in Cairo.
The agreement outlines that the facility will be used to fund trade and trade-related transactions, providing support to UBA’s clients.
The facility will aid increased financing of trade businesses in various sectors of the Nigerian economy thereby mitigating the adverse effects of the Russia-Ukraine crisis.
Speaking during the signing ceremony, the Executive Vice-President of Afreximbank, Denys Denya, said “The funding is driven by an increased demand for trade finance support to UBA’s clients which will enhance confidence in the settlement of international trade transactions for strategic imports. This is pivotal to Afreximbank’s mandate for supporting SMEs particularly those in the manufacturing sector to be able to increase production thereby supporting economic growth and development in Nigeria.
UBA’s Group Managing Director/Chief Executive Officer, Oliver Alawuba, said “This facility will further boost our quest to deepen intra-Africa trade which has been severely constrained by the impact of the war in Ukraine.
“We have long-standing beneficial relationship with Afreximbank, we are delighted of our partnership as we jointly envision better dealings for our customers,” Alawuba said.
UBA, a prominent Pan-African financial institution, serves over thirty-seven million customers through 1,000 business offices and customer touchpoints across 20 African countries.
Operating in New York, London, Paris, and now the UAE, UBA is linking people and businesses throughout Africa via retail, commercial, and corporate banking, as well as innovative cross-border payments, remittances, trade finance, and related banking services.