The African Continental Free Trade Area (AfCFTA) Secretariat and the United Bank of Africa (UBA) have entered into an agreement aimed at supporting Small and Medium Enterprises (SMEs) in Africa.
The agreement involves providing $6 billion to assist SMEs in scaling up their operations and expanding into multinational companies.
Wamkele Mene, the Secretary General of the African Continental Free Trade Area, states that this partnership will grant SMEs access to global markets and capital, enabling them to grow and thrive.
The agreement seeks to empower the private sector, allowing them to actively participate and reap the benefits of the AfCFTA.
Key sectors of focus under this agreement include agro-processing, automotive, pharmaceuticals, transport, and logistics. By targeting these sectors, the AfCFTA Secretariat and UBA aim to facilitate the development and expansion of businesses within these industries.
During the signing ceremony, Wamkele Mene emphasizes the positive impact this agreement will have on SMEs, stating, “The SMEs that are supported by UBA will access global markets, global capital, latest technology, as well as obtain the capital they require.”
He also highlights the importance of involving the informal sector in benefiting from the opportunities presented by the AfCFTA, as this sector significantly contributes to the growth of developing economies.
Muyiwa Akinyemi, the Group Deputy Managing Director of UBA, underscores the vital role that SMEs play in the growth of economies and emphasizes the need to provide support for their expansion.
The agreement between the AfCFTA Secretariat and UBA is expected to foster intra-African trade, boost economic growth, and create opportunities for African economies to prosper.
