United Bank for Africa (UBA), a multinational pan-African Nigerian bank, has announced plans to set up operations in Kenya.
The financial institution with a base in Nigeria made the decision after receiving a trade finance facility worth $150 million (Sh22.6 billion) from the African Export-Import Bank (Afreximbank), a Pan-African trade bank.
In a statement, UBA stated that it will utilize this financial support to prioritize lending to small and medium-sized enterprises (SMEs) that are currently facing challenges due to rising interest rates.
Denys Denya, the Executive Vice-President of Afreximbank, highlighted that the funding is driven by the growing demand for trade finance support among UBA’s clients, which will ultimately enhance confidence in the settlement of international trade transactions for strategic imports.
“This is pivotal to Afreximbank’s mandate for supporting SMEs, particularly those in the manufacturing sector to be able to increase production thereby supporting economic growth and development in Nigeria,” he said.
UBA’s Group Chief Executive Officer, Oliver Alawuba, emphasized that the facility will significantly enhance their efforts to promote intra-African trade, which has faced significant challenges due to the war in Ukraine.
“We have a long-standing beneficial relationship with Afreximbank, we are delighted with our partnership as we jointly envision better dealings for our customers,” Alawuba said.
