The United Bank for Africa Plc last week intensified its cross-border expansion by opening a new branch at the Dubai International Financial Centre. Obinna Chima writes on the expected benefits from the new expansion
In line with its expansion drive, the United Bank for Africa (UBA) last week opened a new branch at the Dubai International Financial Centre (DIFC) to serve its customers in the United Arab Emirates (UAE) and other parts of the Middle East.
UBA is Africa’s Global bank with a rich history spanning over seven decades. The bank which is headquartered in Lagos, is one of the most recognised financial institutions to originate from Sub-Saharan Africa with thriving operations in 20 African countries – Republique du Benin, Burkina Faso, Cameroon, Congo Brazzaville, Congo DRC, Cote d’lvoire, Gabon, Ghana, Guinea, Kenya, Liberia, Mali, Mozambique, Nigeria, Senegal, Sierra Leone, Tanzania, Chad, Uganda and Zambia.
In addition, the financial institution provides corporate, commercial, SME, consumer and personal (retail) banking services to more than 35 million customers, served through diverse channels. Also, UBA offers pension custody and related services.
The bank 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.
UBA’s primary strategy is to focus on its customer and this informs its Customer First (C1st) philosophy which it explained ensures that it always put it customers first.
This, the bank stated it achieved through its deployment of three key levers – People, Process and Technology – to give its customers the best offerings and services. UBA’s business strategy is built on being the bank of choice for individuals and businesses across the African continent and for those who are wishing to do business in Africa.
Furthermore, UBA emphasises the core values of Enterprise, Execution and Excellence and aims to be the leading financial services institution as well as the undisputed Sustainable Financial institution in Africa.
In terms of corporate governance, this the bank stressed it holds as one of its core values and confirmed its commitment to the implementation of effective corporate governance principles in its business operations, in line with the applicable Corporate Governance Codes.
In order to promote effective governance of the bank, relevant structures had been put in place for the execution of the Bank’s Corporate Governance strategy, as elucidated in its Governance Charters, such as the Board, the Board Committees, and Executive Management Committees.
The Board of Directors of the bank has the overall responsibility for ensuring that the highest standards of corporate governance are maintained and adhered to by the Bank. The Board is adequately comprised of the appropriate mix of knowledge, skills, experience, and expertise.
Also, its sustainability strategy ties closely with its corporate vision which is to be the undisputed leading and dominant financial services institution in Africa. This corporate vision is the backdrop of its sustainability vision which focuses on promoting excellence by building a sustainable financial institution that supports the execution of environmentally and socially responsible endeavours.
That is why with the commencement of the Africa Continental Free Trade Area (AfCFTA) agreement, the bank has been positioned to facilitate intra-African trade with its presence in 20 African countries as it offers trade loans and financing, letters of credit refinancing, trade advisory services, access to international banks for cross border trade, PTA/BTA and a team of dedicated relationship managers and its expansion to the UAE, would enable it play more financial intermediation role as the relationship between Africa and the Middle East continues to grow.
UBA’s United Arab Emirates’ Expansion
The UBA (DIFC Branch) would operate under the Category 4 licence and would be regulated by the Dubai Financial Services Authority (DFSA), the financial regulatory agency of the special economic zone, the Dubai International Financial Centre.
The UBA branch in the DIFC would service corporate & financial Institutions and customers across the Middle East with a core focus on correspondent banking, relationship management and advisory services.
Through this new expansion, the UBA Group would be able to harness opportunities in the Middle East, Africa and South Asia (MEASA), which comprises 72 countries with an approximate population of three billion and a nominal GDP of $7.7 trillion and thereby, reinforce its strong franchise as Africa’s Global Bank, facilitating trade and capital flows between Africa and the rest of the world.
Speaking during the launch of the new subsidiary in Dubai recently, the Chairman, UBA Group, Mr. Tony O. Elumelu, explained that with the Group’s foray into the Gulf Region, UBA continues to focus on its strategic intent to lead the way when it comes to doing business in Africa.
He said “Collaborating with our franchises in 20 African countries and the major financial centres of London, New York and Paris, UBA (DIFC Branch) will facilitate the financing of trade transactions between the Middle East and Africa, enabling trade finance and investments.
“We have been looking forward to this day as it is the first time we will have presence in this part of the world. We know that our international expansion is incomplete if we are not present in the gulf.
“So, today, we are now formally in four continents across the globe and serving over 33 million customers and still growing. Today also shows that UBA is also a strong franchise and we are expanding our reach across the world.
“We are considering other locations that would complement what we are doing. This is just the beginning. On behalf of every one in UBA and our customers that made this happen because without them we would not achieve much, we say thank you to them and thank you to the authorities of UAE for granting us this authorisation to operate.”
According to Elumelu, who is also the Founder of the Tony Elumelu Foundation (TEF), pointed out that UBA is the only bank with Nigerian origin that has extended out of Nigeria to the UAE.
“All others have come through other locations and it shows the strength and respect that the authorities in Dubai have for UBA. We are always very deliberate in executing our strategy. We have a long-term view, but we take them one step at a time.
“That is why you have seen consistent progress by UBA. It is not common to find enterprises with that kind of pedigree.”
Also, Elumelu, who is the founder of Heirs Holdings stressed that, UBA setting up in Dubai would also help to provide payment and trade finance correspondent banking platform for Nigerians and Africans who do business in the Gulf region as well as those in the Gulf region who do business with Africa.
“It’s been a long journey; we’ve always hoped and wished for this to happen and we are happy that today, that audacious ambition or dream has become a reality and we are happy that UBA is berthing in the Gulf and Dubai precisely. We are happy to be extending our services to Dubai. UBA Dubai is the first Sub-saharan African bank to be fully authorised to operate as we have just commencing business today,” he added.
Responding to a question on if the bank would be opening more branches in the Middle East, Elumelu said: “It is beyond the Middle East, but the far east as well. But in the first instance, we believe that Dubai should serve this area.
“What we want to do is to be that bank that helps to support our people who do business in any and every part of the world.”
Also, UBA’s Group Managing Director/CEO, Mr. Kennedy Uzoka, who also spoke at the event said: “Today, we are formally on four continents across the globe, operating in 24 countries, serving over 35 million customers and still growing.
“We are the only bank with Nigerian origin that has extended out of Nigeria to the UAE. Those before us have come through other locations and that shows the strength and respect the Dubai authorities have for UBA. Our presence in Dubai affirms that UBA is a strong franchise, expanding its reach across the world.”
Uzoka added: “The authorities and business environment here in the DIFC is phenomenal and UBA is seeing Dubai as the gateway for Africa and that is why we are here, to be closer to our clients, to be partnering with them and facilitate businesses and trade flows into Africa through the UBA franchise. So, we are super excited.
“On behalf of every one in UBA and our customers that made this happen because without them we would not achieve much, we say thank you to them and thank you to the authorities of UAE for granting us this authorisation to operate.
“We are always very deliberate in executing our strategy. We have a long-term view, but we take them one step at a time. That is why you have seen consistent progress by UBA. It is not common to find enterprises with that kind of pedigree.”
On his part, the CEO, UBA(DFIC), Mr. Vikrant Bhansali, said: “Trade, commerce and investments in Africa are expanding in the Gulf Region and Asia. Leveraging the presence of UBA Group in global financial centres, UBA (DFIC) will enhance the ability of the group to facilitate access of Gulf investors and banks to African markets. We will finance trade, facilitate commerce and help grow investment in Africa, across all sectors.”
In his contribution, the Executive Director, Treasury & International Banking, UBA Group, Mr. Chiugo Ndubisi, said the birth of UBA (DFIC), “gives us the opportunity to showcase the UBA brand to our various corporates that operate from the Middle East as well as other African financial institutions and global financial institutions that operate in this area.
“That would give us easy access to funding, which is why treasury is key for us. It also gives us the opportunity to support trade flows for some of our customers in and out of Africa.”
The Chief Executive Officer, DIFC Authority, who spoke during the ribbon cutting ceremony, Arif Amiri said: “UBA(DFIC) attests to the strong relationship between Dubai and Africa. It is a beautiful start as we are looking forward to achieving more interaction, channeling more trade and investments into Africa, and with UBA DIFC, we are closer to achieving our objectives. DIFC will continue to seek partnerships that will deliver winning relationships as we have just witnessed with UBA Group.”
With this development, it is expected that UBA as a strong franchise would be able to meet the needs of its customers who do business in the Middle East, thereby strengthening the relationship between both continents.
