By NDUMBE Bell Gaston in Douala.
The United Bankfor Africa (Group) has initiated another game changer to introduce financial services and markets in order to promote SME activities in the continent of Africa.
The newscheme to provide financial access was revealed to the press at the UBA Cameroon headquarter precincts last Friday April 26 stating that the bank had signed an “agreement with the Africa Continental Free Trade Area (AfCFTA) secretariat since Monday June 19, 2023 to invest U.S Dollar 6 billion as funding for African small and medium enterprises within the next three years.
The scheme as it was comprehensively detailed by UBA officials, is to be invested in sectors such as agro-processing, pharmaceuticals, automative and transport and logistic of SMES, in the 20 countries of the continent that UBA is operational.
UBA, being one of the largest financial services providers of the African Continent with important satellites in Europe, America and the Middle East, consistently holds that contributing financially to SMES in the Continent is providing an excellent game changer to intra-African trade, catalyse Africa’s the industrialisation process and contribute immensely to the socio-economic development of Africa.
The 6 billion U.S. dollars funding within 3 years to SMES was scheduled showing 1.2 billon dollars budgetted for 2023; 1.9 billon for 2024 and 2.88 billion dollar for 2025.
The UBA Cameroun officials were represented by The Managing Director, Jude Anele who has been here for some years now, the head of SME banking Tchinda Joseph, Jean Paul Tchoungui (Chief credit officer), Rose Bonny Wonja of customer service, Jackie Patience Ngalle of customer service and Fred Fonda (service Clientele).
To colleagueswho wanted to know how much funding was allocated specifically to Cameroon, it was disclosed to be 27 million U.S. dollars oran equivalent of FCFA 16 billion.
To those who thought that the scheme seemed to be discriminatory, the head of SME banking among others said for the 34 other African countries that UBA is not operational, this is just the beginning. Plans are being envisaged to engulf them one way or the other as the UBA expands.
Within Cameroon, UBA officials clarified that it is not like only SMES that are engaged in the four selected domains that are the point of focus for UBA. Speaker after speaker highlighted that before the signing of this agreement, they know the importance of SMES as a major block in the deliverance of socio-economic contributions of Cameroon.
The UBA had financed SMES over a period in all or most sectors of human endeavour for up to the tune of FCFA 37billion without this latest agreement. The new scheme only came to add financial lubrication.
On issues related to guarantees, it was said that the government’s FCFA 200 billion guaranteespackage has come to encourage banks to provide loans. Earlier the most likely assets that acted as collateral were demands like land titles and other landed assets. These conditions were equally inimical to the have nots.
Notwithstanding, those who have their personal guarantees can still use them to acquire financial services or loans. Questions were raised as to the inclusion of women and we learnt that it was a very sensitive aspect that is being taken seriously in the new scheme or partnership.
For those who wanted to know achievements since the agreement came into force in June 2023, it was explained that the achievements have been preparatory in a variety of ways, such as in cases like this, and not only in Cameroon but also taking into consideration some regional interests before concretization of the funding can be done, among others, explained some customer service officials.
In his closing remarks, the UBA Cameroon MD Jude Anele said that the role played by small and meduim enterprises in any country and in Cameroon in particular cannot be over emphasized. They contribute immensely (about 70 percent) of the GDP as a block and the creation of jobs’. among others.
He said that despite some of their weaknesses such as the lack of transparency in accountability it is a one man business where one man is playing the role of every service and after he dies, the company or enterprise also dies with him.The bank has been able to create some remedial services such as counseling, teaching them the basics of accounting in seminars and the upgrading of human capital, to help them improve their performances and contributions to society. They were also advised to have next of kins. Jude Anele also appreciated government’s efforts in providing a guarantee package to SMES and this gesture, he added, has catalyzed the provision of financial services to SMES.
As for the agreement signed with AfFCTA, the MD reiterated the justifications for boosting intra-African trade and increase trade surpluses after exports.