The Afreximbank has signed a 150 million dollar trade finance facility agreement with United Bank for Africa (UBA) PLC, under the Ukraine Crisis Adjustment Trade Financing Programme for Africa.
The agreement was signed on the sidelines of the ongoing Intra-African Trade Fair (IATF) 2023 in Cairo, Egypt on Monday.
According to Afeximbank, the facility, strategically crafted to mitigate the adverse effects of the Russia-Ukraine crisis, aims to support UBA’s clients to increase their financing for businesses across various sectors in the Nigerian economy.
The agreement was signed by Denys Denya, Executive Vice-President, Finance, Administration Banking Services, Afreximbank, and Oliver Alawuba, Managing Director of UBA PLC.
NAN reports that according to Afreximbank , the facility is expected to enhance confidence in the settlement of international trade transactions for strategic imports.
“The funding is driven by an increased demand for trade finance support to UBA’s clients which will enhance confidence 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.