How UBA’s support sustains SMEs

The United Bank for Africa (UBA) is one financial institution that realises that any support given to the micro, small and medium enterprises (MSMEs) usually has a multiplier effect on an economy, in terms of job and wealth creation as well as gross domestic product contribution.

The UBA has, over the years, provided the platform for this category of business, which forms up to 90 percent of enterprises in the country, to thrive.

Just recently, the bank launched a web-based platform called ‘U-Direct Corporate’ to help those in this category of business maximise their payments, collections and liquidity position.

U-Direct Corporate, which is available on Android, IoS, and Blackberry smart phones, makes access to payments and approvals on mobile phones easy.

U-Direct Corporate also helps firms to speed up receivables processing, resulting in reduced financial exposure, lower borrowing costs and maximised cash flow.

“The mobile application can track and monitor transactions and balances, initiate or decline approvals even while on the move on business or personal calls. No important business has to wait until they get back to the office,”said Emeka Uzoigwe, product manager for U-Direct Corporate, during the launch.

The bank recently partnered Netplus Advisory Limited to deploy a robust web payment solution for U-Mall, an e-commerce platform meant to boost MSMEs.

U-Mall is designed to help MSMEs set up their own online stores to extend reach and drive growth.

The platform is designed to host several stores across various retail categories as entrepreneurs are able to open virtual stores to display an inventory of their products to potential shoppers on the internet.

U-Mall leverages the power of the web and mobile to provide an e-commerce platform that affords the convenience of shopping to customers and the ease of selling and reconciliation to merchants, according to the bank.

“U-Mall is set to revolutionise e-commerce and it is an honour to have UBA, a bank that has led many innovations in electronic Banking as our payment partner,’’ said Wole Faroun, managing director Netplus Advisory and Technical Partners, regarding the project.

One of the biggest problems facing start-ups and MSMEs in Nigeria and Africa is poor access to finance, particularly medium- to long-term capital. To plug this loophole, UBA, in 2012, partnered the European Investment Bank to provide €50 million to support small businesses in the country and other parts of Africa.

It was the first time the EIB would provide such a facility to a Nigerian bank for on-lending to MSMEs across borders.

“This significant partnership between UBA and the European Investment Bank will benefit small businesses seeking to expand and contribute to strengthening of the financial sector in 16 African countries,” Pim van Ballekom, EIB vice president, said at the event.

On his part, Phillps Oduoza, group managing director, said the bank was committed to fostering economic integration on the continent and supporting the development of African businesses.

“The partnership with EIB provides us with an additional source of medium to long term funding and will enhance financial intermediation in key sectors such as agriculture, manufacturing, infrastructure, transport, energy, health, education and, other sectors where long term funding is required,” Oduoza said at the event, which took place in Lagos.

Earlier in 2009, the bank, in collaboration with Empretec Nigeria Foundation, trained 600 MSME operators.

According to Oduoza, then the bank’s deputy MD, the scheme was meant to jump-start the nation’s economy and nine other African countries since this category of business could create a lot of momentum.

“We want to highlight the importance of this vital segment and its contributions. In the South East Asia, the major economic development comes from this segment and the level of employment it creates is quite enormous. Most motor spare parts and other products we see here in Nigeria have China, Taiwan, Indonesia, Singapore labels. If we are able to create this in Nigeria and other parts of Africa, it is going to be a starting point of our economic development.”

Oduoza said that the bank was encouraged by the success of the N50 billion agriculture scheme it launched in February that year, which was well received by the public.

ODINAKA ANUDU