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UBA, DEG in $50m Term Loan pact to support small businesses in Nigeria

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UBA Head Office

WED 09 JUNE, 2021-theGBJournal- United Bank for Africa (UBA) Plc, the Pan African financial institution, and Deutsche Investitions- und Entwicklungsgesellschaft mbH, the German Development Finance Institution have signed a USD 50m Term Facility Agreement, geared towards  supporting small and medium scale businesses (SMEs) in Nigeria.

The facility with a tenor of six years is targeted at supporting SMEs and family owned businesses in Nigeria.

‘’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,’’ UBA America’s Chief Executive Officer and Global Head for Financial Institutions, Multilateral and Development Organizations, Sola Yomi-Ajayi said while speaking on the partnership.

“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.’’

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

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% subsidiary of Evangelische Bank (EB).

Tilemann said, the move is a major milestone for DEG’s Regional Representative Office in Lagos which was opened in 2019.

DEG has offices in Lagos, Abidjan, Johannesburg and Nairobi.

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