First developed in Nigeria, where it is the third largest bank, UBA is now present in 20 African countries, and totalizes more than 18 million clients. With excellent reputation in corporate banking (companies, investors, etc.), UBA now seeks to diversify and invest the SME market, develop its retail banking activities, and increase its activities outside Nigeria.
In this context, Proparco’s operation will support the funding of local SMEs, as well as projects relating to energy efficiency and renewable energy, enabling the development of green infrastructures needed to face the country’s increasing energy challenge. It will also support the development of UBA subsidiaries which don’t yet have direct access to funding in USD.
This operation should contribute to the creation of more than 7,000 jobs within UBA, about half of which will be filled by women. In addition, the energy efficiency and renewable energy projects which will be funded should have a positive impact on access to electricity, and contribute to reduce carbon emissions - coming within the scope of SDG n°7: Affordable and clean energy.
AFD Group’s total investment reaches USD 120 M
Proparco’s operation is paired up with a USD 35 M SUNREF funding by its parent company AFD, which will also fund energy efficiency and renewable energy projects in Nigeria. This new AFD Group’s operation to the benefit of UBA therefore reaches a total of USD 120 M.
In May 2019, UBA had been the first beneficiary of AFD Group’s new EURIZ guarantee mechanism, supporting MSMSE’s access to credit in Nigeria, in sectors with a high social and societal impact.
AFD Group’s support to UBA falls within the frame of Choose Africa, the French initiative implemented by the AFD Group to support and fund 10,000 African MSMEs and start-ups by 2022.