Photo Caption: Zhijie, Elumelu and Uzoka at the signing ceremony on February 27, 2018.
Pan-African banking group, United Bank for Africa Plc and China Development Bank (CDB), the world’s largest development finance institution, on February 27, 2018 signed a letter of intent for $100m seven-year to finance the development of small and medium enterprises (SMEs) in Africa.
The 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.
Kennedy Uzoka, Group Managing Director and Chief Executive of UBA Plc expressed excitement at the partnership with CDB, “the Development Finance 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.”
Uzoka said fund would complement the recovery of economic activities, just as it will further encourage African entrepreneurship particularly as the funds will be applied to SMEs, which are important for inclusive growth on the continent.
Speaking at the signing ceremony, Chairman of UBA Plc, 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.
“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,” he added.
Elumelu further expressed hope for an even stronger relationship between CDB and UBA, as well as with China and Nigeria.
Also commenting, the President of CDB, Zheng Zhijie, said the loan intent 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.
