UBA, UNDP sign pact to scale up activities of MSMEs
THE United Bank for Africa (UBA) Plc has signed a Memorandum of Understanding (MoU) with the United Nations Development Programme (UNDP) to support youth and women-led Micro, Small and Medium scale Enterprises (MSMEs) in Ghana to scale up their businesses.
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The partnership seeks to support UBA Ghana to access climate financing schemes to increase financial inflows from climate funding channels to support Ghana’s efforts to turn climate commitments into actions.
Through the partnership, businesses will receive a tailored programme of business service support and capacity development in areas, including corporate governance, branding, marketing, financial support and product design/development to enable easier access to markets for their products and services.
They will also be supported with energy efficiency audits and remedial actions to minimise their carbon footprints.
Significance
Signing on behalf of UBA Ghana at a short ceremony in Accra, the Managing Director of the bank, Chris Ofikulu, said MSMEs formed the backbone of the country’s economy through job creation, innovation and economic growth, driving poverty reduction and contributing significantly to the Gross Domestic Product (GDP) of the nation.
However, they face numerous challenges, including limited access to finance, lack of technical know-how and inadequate infrastructure which often hindered their ability to scale up and fully realise their potential.
He said through the MOU with UNDP, the bank aimed to address these challenges by providing targeted financial support and capacity-building initiatives to MSMEs.
“By leveraging UNDP's deep understanding of the local business environment and their expertise in sustainable development, we can tailor our interventions to meet the specific needs of MSMEs and foster an enabling environment for their growth.
Collaborating with UNDP demonstrates UBA Ghana’s commitment to supporting the Sustainable Development Goals (SDGs), with a particular focus on providing custom financial solutions and growth opportunities for businesses of all sizes to facilitate inter and intra-African trade,” Mr Ofikulu said.
Channel resources towards development
The UNDP Resident Representative in Ghana, Dr Angela Lusigi, said the UNDP was working to influence the flow of resources towards development by encouraging investors and businesses of all sizes to imbibe the Sustainable Development Goals (SDGs) and Climate action into their analytics, decision making and business practices.
The MOU, she said, would promote inclusive, resilient and green entrepreneurship by leveraging UNDP’s expertise in working with MSMEs and innovators, and UBA Ghana’s expertise in supporting businesses.
“UNDP remains committed to drawing on our national, regional and global expertise and community of practice to advance Ghana’s development agenda.
We will work through this partnership with UBA Ghana to strengthen the capacities and ecosystem for MSMEs to thrive while improving access to innovative financing for climate action,” she said.