UBA spends $1 billion on infrastructure financing in Africa- Official

The United Bank for Africa (UBA) has in the last few years, committed $1 billion to infrastructure financing in Africa economies where it operates, Executive Director/Chief Executive Officer, UBA Africa, Abiola Bawuah has said.

Speaking  at a hybrid media parley in Lagos, she said the bank has invested heavily and supported key governments of various African countries with over $1 billion in infrastructural development especially in roads, hospitals, health, power and other critical sector.

She also said all the subsidiaries of the bank are profitable and contribute 50 per cent to group earnings.

Bawuah said: “The subsidiaries have continued to perform well despite currency devaluations and double digit inflation in Nigeria and a number of other African countries where the bank operates. The subsidiaries have been performing well, contributing significantly to the growth and development of trade, infrastructure and finance on the continent.”

She added that the subsidiaries are leveraging on digital offerings and products across board to gain large market shares across the different regions of operations in Africa.

She said, “As at last month, none of our African subsidiaries is making a loss. They have all been turning in profits, this is a testament to the fact that they have navigated successfully and have all found their footing”.

Continuing, she said, “And this extends to each and every one of them, even the ones in war-torn countries. Of course, we are aware that there is always room for improvement, but for now, we are glad that our 19 subsidiaries are out of the red zone.”

In the area of infrastructure financing, she affirmed that UBA has been bullish in financing projects across Africa, which according to her is based on the conviction that the continent needs to bridge the infrastructural gap, necessary for economic growth.

“UBA has proven expertise and capacity in key sectors of economies across Africa especially in oil and gas, infrastructure finance, agriculture and commodity/export, and these have positioned it as a preferred partner for structured solutions to key governments and corporates operating in/into Africa,” Bawuah said.

She said: “All our subsidiaries are profitable and efficient. Our large size has not affected the nimbleness of our operations. We have also supported infrastructure investment in Africa, including funding for road construction projects and small and medium enterprises”.

According to her, the bank has contributed massively in promoting trade in Africa, and has partnered with the African Continental Free Trade Area (AfCFTA), adding, “At UBA, we believe that our customers should be able to trade conveniently among themselves, and so we have been partnering with them in this area. We have made it easy for our customers across countries to trade easily within themselves, without having to bother about all the hassles that have to do with forex.”

She also said AfCFTA implementation has discouraged the realisation of Eco, as a common currency across West Africa. She added that many central banks are now settling intra-Africa trade payments for Africa under the AfCFTA.

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