UBA, German firm sign $50m long term loan agreement to improve Nigerian SMEs

By Ezurike Ugochukwu

The Pan-Aftican bank, United Bank for Africa (UBA) Plc and Deutsche Investitions- und Entwicklungsgesellschaft mbH(DEG), a German development finance institution, have entered into a partnership to support small and medium scale businesses (SMEs) in Nigeria.

UBA and DEG $50m have endorsed term facility agreement to aid both parties, with a tenure of six years targeting SMEs and family-owned businesses in Nigeria.

Yomi-Ajayi

UBA America’s chief executive officer Sola Yomi-Ajayi, said as a financial institution, UBA remains passionate about the growth of the private sector and small businesses which according to her, remains critical for any developing country. She noted that the passion to see this sector succeed is what led both organisations to collaborate on this laudable feat.

The America’s chief executive officer who is also the global head for financial institutions, multilateral and development organizations, however stated , “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.”

Yomi-Ajayi added, “These objectives remain core aspects of our strategy, particularly as regards to facilitating the achievement of Sustainable Development Goals on the African continent.”

Tilemann

Emphasising on the gains of the union, DEG’s regional director for West Africa Bernhard Tilemann said, they are delighted to enter into a long-term cooperation with UBA in Nigeria and the region.

He said, “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% subsidiary of Evangelische Bank (EB).

The regional director noted that DEG has offices on the African continent in Lagos, Abidjan, Johannesburg and Nairobi; and pointed out that the move is a major milestone for DEG’s regional representative office in Lagos which was opened in 2019.