UNITED Bank for Africa Plc and DEG, German Development Finance Institution, have entered into a partnership to provide $50 million loan support to Small and Medium Scale Enterprises in Nigeria.
The bank, in a statement, said the $50m Term Facility Agreement had a tenor of six years and was targeted at supporting SMEs and family owned businesses in Nigeria.
Chief Executive Officer, UBA America, Sola Yomi-Ajayi, said, as a financial institution, UBA remained passionate about the growth of the private sector and small businesses which, she noted, remained critical for any developing country.
She added that the passion to see this sector succeed was what led both organisations to collaborate on the laudable feat.
Yomi-Ajayi, who is also the Global Head for Financial Institutions, Multilateral and Development Organizations, said, “At UBA Group, we are proud of this collaboration with DEG, particularly as it supports our financial intervention in the SME space, enabling financial inclusion, as well as facilitating economic empowerment.
“These objectives remain core aspects of our strategy, particularly as regards to facilitating the achievement of Sustainable Development Goals on the African continent.”
In his comments, DEG’s Regional Director for West Africa, Bernhard Tilemann, said, “DEG is delighted to enter into a long-term cooperation with UBA in Nigeria and the region.
“This cooperation will address the current economic challenges of the country while fostering private sector growth and impact in the largest economy of the continent.”
According to Tilemann, the funding provided by DEG is partly supported by EB-SME Finance Fund Emerging Markets, while the fund’s adviser is a 100 per cent subsidiary of Evangelische Bank (EB).