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Tag: Small and Medium-sized Enterprises

  • Afreximbank disburses $40 million to support Fidelity Bank’s acquisition of Union Bank UK

    Afreximbank disburses $40 million to support Fidelity Bank’s acquisition of Union Bank UK

    …With this acquisition, Fidelity Bank is able to birth a new pan-African financial institution capable of providing correspondent banking and offshore banking services to banks in Africa

    African Export-Import Bank (Afreximbank) has announced the disbursement of a US$40-million Intra-African Investment Facility to Fidelity Bank Nigeria Plc (“Fidelity”) to support Fidelity Bank’s acquisition and recapitalization of Union Bank UK as part of its international expansion programme.

    Provided in two tranches of US$20 million each, the first tranche of the facility enabled Fidelity to part-refinance the acquisition of 100 per cent equity stake in Union Bank UK, while the second tranche was used to support its recapitalisation via the injection of additional equity into the acquired bank, as approved by the United Kingdom’s regulator.

    With this acquisition, Fidelity Bank is able to birth a new pan-African financial institution capable of providing correspondent banking and offshore banking services to banks in Africa and servicing the banking needs of Africans in the diaspora.

    Commenting on the transaction, Kanayo Awani, Executive Vice President, Intra-African Trade Bank and Export Development Bank, Afreximbank, noted that the disbursement of the facility was part of Afreximbank’s effort to promote African control and ownership of capital while improving intra-African trade and investments.

    “Fidelity Bank’s acquisition of Union Bank UK aligned with Afreximbank’s Intra-African Investment Facility. It was a significant milestone for both institutions, reinforcing African ownership and control within the global financial landscape,” Mrs. Awani said. “By supporting this strategic transaction, we are not only bolstering Nigeria’s banking sector but also fostering greater financial integration between Africa and its Diaspora. This initiative is a testament to our commitment to enhancing intra-African trade, promoting economic stability and driving forward the objectives of Agenda 2063 for a prosperous and self-reliant Africa.” She added.

    Mrs. Awani stated that Afreximbank’s Bank Acquisition Strategy, empowers African entities to acquire financial assets divested by foreign entities in Africa and the diaspora. This is also in line with the Bank’s Diaspora Strategy which seeks to promote and finance the integration of the African Diaspora with the rest of the continent. .

    She noted that, through the facility, Fidelity was extending its services to the UK, particularly to Africans and African-owned businesses in the UK, including products to support Diaspora investments.

    In the words of the MD/CEO of Fidelity Bank, Dr (Mrs) Nneka Onyeali-Ikpe, ‘We are very thankful to Afreximbank for supporting our expansionary initiatives for international growth. It is, indeed, the result of a strong partnership between the two institutions over the years that has produced this good outcome.

    The refinancing of the Union Bank (UK) acquisition by Afreximbank will unlock additional value and help create a scalable and more sustaining service franchise that will support trade businesses in Africa and diaspora banking.”

    The acquisition is expected to contribute to Africa’s economic growth and development by increasing intra- and extra-African trade finance and trade flows between Nigeria and the UK, supporting the integration of the African Diaspora into regional and continental supply chains and enabling small and medium-sized enterprises across the continent to improve their export competitiveness and light export manufacturing capabilities.

  • Stanbic IBTC Tasks Nigerian Investors to Tap into AfCFTA to Boost Intra-Africa Trade

    Stanbic IBTC Tasks Nigerian Investors to Tap into AfCFTA to Boost Intra-Africa Trade


    Stanbic IBTC Bank PLC, a subsidiary of Standard Bank Group, has urged Nigerian investors and business owners to harness and maximise the business opportunities that are inherent in the African Continental Free Trade Area (AfCFTA) agreement. This will help boost intra-Africa trade beyond the current level of 17 per cent as well as promote industrialisation and the economic growth of the continent. 

    Wole Adeniyi, Chief Executive, Stanbic IBTC Bank PLC, made the call at the African Continental Free Trade Area webinar organised by Stanbic IBTC themed: “AfCFTA State of Play: Understanding Potential and Maximising Opportunities for the Customer”.

    Wole stated that multiple studies have shown that the increase in trade has a direct impact on reducing unemployment and poverty in societies, he noted that the AfCFTA agreement presents numerous trade opportunities that are both exciting and promising not just for the continent but for the Nigerian market. The Chief Executive emphasised Stanbic IBTC’s readiness to leverage the trade opportunities of the AfCFTA agreement to unlock business opportunities for its clients in the Small and Medium-sized Enterprises (SMEs) sector as well as its corporate clients.

    While delivering his keynote address on the theme of the event, the guest speaker, Bamidele Ayemibo, lead consultant at 3T Impex Trade Academy, pointed out that with the implementation of the AfCFTA agreement, Africa has the opportunity of becoming the largest market in the world with a population of 1.2 billion people and a combined GDP of $3.4 trillion. Ayemibo emphasised that the goal of AfCFTA is to create a single market for Africa and encourage the free movement of goods and services thereby facilitating trade transactions.

    He pointed out that Nigerian customers can take advantage of the non-sensitive list, the sensitive list and the exclusive list in the agreement while engaging in various trade transactions with other African countries. According to him, out of about 5,000 AfCFTA codes or products in the world that fall under the non-sensitive list, 90 percent are duty-free and Nigerian customers can take advantage of this. He added that countries can liberalise their products under the sensitive list within a period of 10 years while the exclusive list enables countries not to liberalise their products in order to protect that sector of their economy.

    Ayemibo stressed that the Federal Government is currently developing a portal where Nigerian customers and investors can trade with other countries under the AfCFTA agreement. He explained that AfCFTA presents a huge potential for Nigerian manufactured products on the African continent because Nigeria produces about 90 percent of such products that are imported by other African countries.

    While appreciating Stanbic IBTC for the bold step it has taken to educate its clients and investors about the benefits of AfCFTA, Ayemibo added that information enables agreement such as the AfCFTA to thrive, lamenting that previous agreements like the Ecowas Trade Liberalisation Scheme (ETLS) collapsed due to lack of adequate information. He added that with its vast footprint across Africa through Standard Bank, Stanbic IBTC can reach out to its numerous customers and educate them on the benefits of the AfCTFA agreement.

    The African Continental Free Trade Area is a free trade area founded in 2018, with trade commencing in January 2021. It was created by the African Continental Free Trade Agreement among 54 of the 55 African Union nations. Nigeria signed the AfCFTA in 2019, after a year’s delay, and is considered as the most recent country to ratify the agreement.