Amidst the unfolding Ukraine crisis, the African Export-Import Bank (Afreximbank) sealed a significant trade finance agreement worth $150 million with United Bank for Africa (UBA) PLC. This strategic pact falls under the Ukraine Crisis Adjustment Trade Financing Programme for Africa, aiming to bolster businesses in Nigeria amidst the crisis fallout.
The agreement, formalised at the Intra-African Trade Fair (IATF) 2023 in Cairo, Egypt, marks a concerted effort by Afreximbank to mitigate the repercussions of the Russia-Ukraine crisis. By supporting UBA’s clients, this facility is geared to amplify financial resources across diverse sectors within Nigeria’s economy.
Denys Denya, Executive Vice-President of Finance, Administration Banking Services at Afreximbank, and Oliver Alawuba, Managing Director of UBA PLC, were the signatories to this pivotal agreement.
Afreximbank highlighted the objective behind this financial aid, emphasising its intent to instil greater confidence in international trade transaction settlements, particularly for vital imports like food, medications, and agricultural products. The funding surge is attributed to the amplified need for trade finance assistance to UBA’s clientele.
“This funding surge caters to heightened demands for trade finance support among UBA’s clients, reinforcing the settlement of international trade transactions for crucial imports,” stated Afreximbank. The institution underscored the importance of this support, especially for small and medium-sized enterprises (SMEs) in the manufacturing sector, poised to fortify production and bolster Nigeria’s economic growth and development.