African Continental Free Trade Area (AfCFTA) Secretariat and United Bank of Africa (UBA) have formed a strategic collaboration to support the growth and expansion of Small and Medium Enterprises (SMEs) across the continent, which is a significant development for the AfCFTA.
According to the agreement, UBA sets to contribute a substantial investment of $6 billion to support SMEs in expanding their businesses and becoming worldwide organizations.
The AfCFTA Secretariat’s and UBA’s partnership is anticipated to foster an atmosphere that will allow SMEs to flourish and get access to international markets and funding.
Wamkele Mene, the Secretary General of the African Continental Free Trade Area, expressed optimism about the positive impact this partnership will have on SMEs, stating that it will unlock immense opportunities for growth and development.
During the signing ceremony, Wamkele Mene highlighted the transformative potential of this collaboration, stating, “The SMEs that are supported by UBA will gain access to global markets, global capital, latest technology, as well as obtain the capital they require for expansion.” This access to global markets and capital is expected to play a vital role in propelling SMEs towards sustainable growth and enabling them to seize new opportunities arising from the implementation of the AfCFTA.
UBA Commits To Giving Its Support To Empower SMEs
The Group Deputy Managing Director of UBA, Muyiwa Akinyemi, emphasized the pivotal role that SMEs play in driving economic growth and job creation, emphasizing the need for concerted efforts to support their expansion.
He stated, “SMEs are the backbone of the African economy, and we are committed to providing the necessary support to enable their growth and success.”
By empowering the private sector, particularly SMEs, the agreement aims to promote active participation and inclusive economic growth within the framework of the AfCFTA. The key sectors of focus under this partnership include agro-processing, automotive, pharmaceuticals, transport, and logistics.
By targeting these industries, the AfCFTA Secretariat and UBA aim to facilitate the development and expansion of businesses operating within these sectors, thereby enhancing their competitiveness in the global marketplace.
In addition to promoting the growth of SMEs, the partnership between the AfCFTA Secretariat and UBA also recognizes the importance of integrating the informal sector into the formal economy.
The informal sector constitutes a significant portion of many African economies and plays a crucial role in job creation and economic development. By providing support and opportunities for informal businesses to participate in the AfCFTA, this collaboration seeks to harness the full potential of Africa’s entrepreneurial spirit.
The partnership between the AfCFTA Secretariat and UBA is expected to contribute significantly to fostering intra-African trade, stimulating economic growth, and creating opportunities for African economies to prosper. By providing financial resources, market access, and capacity-building initiatives, this collaboration represents a major step forward in harnessing the potential of SMEs and propelling Africa’s economic transformation within the framework of the AfCFTA.
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