The African Export-Import Bank, Afreximbank, and United Bank for Africa (UBA) PLC signed a $150 million trade finance facility agreement, under the Ukraine Crisis Adjustment Trade Financing Programme for Africa.
NewsTimes gathered that both parties signed the agreement on the sidelines of the ongoing Intra-African Trade Fair (IATF) 2023 in Cairo, Egypt on Monday.
The agreement was signed by Afreximbank’s Executive Vice-President, Finance, and Administration Banking Services, Denys Denya, and the Managing Director of UBA PLC, Oliver Alawuba.
Details of the trade finance facility agreement
Afreximbank revealed that the trade finance facility agreement was strategically crafted to ameliorate the adverse effects of the Russia-Ukraine crisis and to support UBA’s clients to increase their financing for businesses across various sectors in the Nigerian economy.
Furthermore, Afreximbank asserted that the facility would enhance confidence in the settlement of international trade transactions for strategic imports, particularly for food, medications, and agro products.
- “The funding is driven by an increased demand for trade finance support to UBA’s clients which will enhance the confidence of medium-sized enterprises in the settlement of international trade transactions for strategic imports such as food, medications, and agro products.
- “This is crucial to Afreximbank’s mandate as it supports small and medium-sized enterprises, particularly those in the manufacturing sector to increase production thereby supporting economic growth and development in Nigeria,” Afreximbank said.
What you should know
- The ongoing Third Intra-Africa Trade Fair (IATF2023) began on November 9th in Cairo, Egypt, and will end on November 15th.
- The IATF2023 is organized by the Afreximbank in collaboration with the African Union (AU) and the Africa Continental Free Trade Area (AFCFTA) Secretariat.
- The objectives of the IATF2023 include promoting intra-African trade; enhancing market access for African businesses; facilitating networking; showcasing African products and services; and attracting investments in the African market.