AfDB sign loan agreement with UBA and CRDB to support SMEs in Nigeria and Tanzania
The line of credit will finance infrastructure and SME projects.The African Development Bank (AfDB) and United Bank for Africa (UBA) have signed a $150 million (€141.3 million) loan agreement to finance infrastructure and small and medium-sized enterprises (SMEs) projects in Nigeria, including women-owned enterprises.
"The Fund will support development of productive sectors of the economy, particularly the power sector, infrastructures, women-owned enterprises as well as SMEs. This line of credit will boost efforts to reduce the huge power sector-financing deficit that is limiting energy supply, but also complement our support to SMEs, while also promoting gender diversification across the value chain," said UBA's Chief Executive Kennedy Uzoka in a press release.
By leveraging UBA's branch network, the line of credit will also scale up lending to SMEs and women enterprises in both urban and rural areas, which is expected to create more jobs and to promote inclusive growth.
The AfDB also signed a $120 million loan agreement with CRDB Bank to finance infrastructure and SME projects in Tanzania.
The loan will support infrastructure development, particularly in the power and transport sectors, which is a major constraint for Tanzania’s economic diversification and growth.