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UBA, ATI collaborate to boost trade

By on September 25, 2014

The United Bank for Africa (UBA) Plc has announced a partnership with the African Trade Insurance Agency (ATI) to ease the flow of credit to clients engaging in regional and international trade.

A statement from the bank yesterday revealed that the partnership was sealed in Kenya on Monday, after officials of both institutions led by the Chief Executive Officer, UBA Africa, Mr. Kennedy Uzoka and ATI’s Chief Executive Officer, George Otieno signed the agreement to formalise the deal.

Under the agreement, ATI would provide insurance cover for eligible UBA Group transactions with its political risk and trade credit insurance products. The risk mitigation services would provide an alternative to collateral for UBA’s corporate clients, who may otherwise face financial constraints in obtaining credit, while also protecting them against cross-border trade risks and a broad range of investment risks.

Intra-Africa trade is estimated to be one of the lowest globally at just 10 per cent of total trade in the continent. This is quite low when compared with trade among the EU-27 at 70 per cent, 52 per cent for Asian countries, 50 per cent for North American countries and 26 per cent for South American countries.

Africa’s commodities boom, natural resources and related government spending to revive infrastructure development is estimated to have generated 32 per cent of the continent’s GDP growth, while other sectors such as transportation, telecommunications and manufacturing, are all sectors which UBA believe would benefit from expanded credit.

UBA is banking on the need for financial services in these areas to support the continent’s ultimate growth with comprehensive retail banking services and trade finance for small and medium size enterprises

“UBA is keen to boost inter and intra-African trade because of its capacity to accelerate development and integration across the continent.  Over the years we have supported our customers to grow their business network across Africa and internationally in pursuit of a more prosperous Africa.

“UBA’s partnership with ATI will ease the flow of credit to our customers and help them expand their businesses across the continent,” Uzoka said.

On his part, Otieno said banks would continue to be a vital aspect of ATI’s business strategy.

“We are able to impact a greater number of people through their client networks. This partnership with UBA helps us to support cross-border trade, help companies to access credit and to positively impact the region’s economic development,” Otieno added.

 

 

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