At 4th SMEs Series: UBA restates commitment in deepening intra-Africa trade, SMEs growth.

According to the bank, it was important for Africa to be deliberate about the economic liberation drive of the continent.  

UBA's zeal in supporting the growth of Small and Medium Sized Enterprises, SMEs, operating in the transport and logistics sector was made known during the just ended 4th edition of the SMEs Series, which took place on Thursday September 27 in Douala.

The UBA SMEs Series is actually a concept that was created by the bank through which it organises periodic conference for SMEs to be trained, educated, raise awareness on certain topics that have impact on their business.

Experts, during the SMEs Series, centrered exchanges under the topic: “Financing the transport & logistics sector in Africa: The solution that comes from UBA and the African Continental Free Trade Area”, providing financial solutions to the sector within AfCFTA.

Opening the session, the Head of Retails at UBA Cameroon, Rose Bonny Wonja, explained that the bank’s dedication to SMEs and trade advancement across Africa and specifically Cameroon was what informed its agreement with the AfCFTA Secretariat, to provide financing support of up to 6 billion US dollars over the next three years to eligible businesses across the continent.

The agreement was signed on the sidelines of the 30th Afreximbank Annual Meeting, AAM, which was held in Accra, Ghana. 

By this agreement, both parties are to promote the development of SMEs operating in four sectors under the first phase of the partnership, which are largely import-dependent by providing technical and financing solutions for intra-African/domestic alternatives.

These economic sectors are agro-processing, automotive, pharmaceuticals, transport and logistics. The agreement targets SME and corporate account holders, traders, sole proprietors... 

"The total amount is 3 billion US dollars, that is, 3 trillion FCFA. For Cameroon, the envelope allocated for our SMEs is 16 billion FCFA. The bank comes in various aspects; first of all you have the financing in terms of buying trucks, because those who are mainly involved in transport need new trucks to do the job," Wonja said.

Wonja added that are other actors like those in transit who can still have financial support to increase their business.

“We help them get good equipment to deliver good services. We support with everything around custom bounds, letter of credits between the customers and the suppliers, and bank guarantees,” she noted.

The Director of Trade for Cameroon and CEMAC, Jackie Ngalle, on her part, called on representatives of the logistics companies present to leverage on the opportunities brought to them by the AfCFTA.

“The zone creates a whole new markets outside CEMAC as such it is important for SMEs to know that they have goods, they can sell it either in Cameroon, within the CEMAC region or the continent to gain profit,” she said. 

“We import a lot but what do we do with what we produce? UBA's local bankers in countries within AfCFTA can link up to help SMEs with all documentation needed to settle demands in the countries they desire to do business," Ngalle added. 

It should be recalled that one of the key initiatives of the AfCFTA is to improve access to finance and markets for SMEs to encourage their growth and contribution to the socio-economic development of Africa.

“UBA remains committed to supporting the growth/development of SMEs across Africa. This is in line with our strategic focus on the SME segment being a catalyst to the economic development of Africa,” UBA's Head of Banking, Joseph Nchinda said. 

He explained that under the partnership, UBA would go beyond just financing to provide non-financial services to these SMEs to develop the capacity for growth across the 20 African countries where UBA are present.

This article was first published in The Guardian Post Edition No:3246 of Tuesday October 01, 2024