UBA Receives $175M Boost from AfDB to Support Women Led Businesses

The United Bank for Africa (UBA) Plc has won a huge $175 million funding package from the Africa Development Bank (AfDB) Group, in a significant financial development. This infusion of capital is intended to strengthen UBA's assistance for the private sector and facilitate infrastructure development in Nigeria, Africa's largest economy.

The financing package consists of $100 million in long-term senior debt, $50 million in trade finance medium-term senior debt, and a risk participation program worth $25 million. The long-term senior debt will be used to fund major infrastructure, agricultural, manufacturing, energy, and small and medium-sized businesses (SMEs) projects in Nigeria. Furthermore, the trade finance senior loan is intended to provide UBA with critical countercyclical dollar liquidity, therefore assisting SMEs and local corporates engaged in import-export activity.

The Affirmative Action for Women in Africa (AFAWA) program will provide technical assistance to increase the effectiveness of this effort, with a focus on increasing access to finance and technical support for women-owned SMEs.

The underfunded Risk Participation Agreement is intended to reinforce UBA UK's function as a regional confirming bank, allowing African issuing banks greater access to international markets. AfDB and UBA UK will share the default risk on a portfolio of qualifying trade transactions originating by African issuing banks and insured by UBA UK under this arrangement.

Lamin Barrow, AfDB's Group Director General for Nigeria, expressed delight in assisting UBA, which aligns with the AfDB's High 5 goals. This financial intervention is projected to fulfill unmet demand for trade finance in Nigeria and Africa, improving the sustainability of economic sectors and fostering job creation. Oliver Alawuba, Group Managing Director/CEO of UBA, stated that the facility will strengthen assistance for crucial sectors of the Nigerian economy, notably women-owned enterprises and SMEs, which are critical engines of economic development.