Why UBA Group’s Move To Begin Full Operations In France Is Labeled A Big Deal

The deal has been signed—the presence of two presidents, Bola Tinubu (Nigeria) and Emmanuel Macron (France), highlighting its value—for financial powerhouse UBA Group to begin full operations in Paris.

United Bank for Africa (UBA) Group Chairman Tony Elumelu signed the milestone business cooperation agreement with the French Finance Minister, Antoine Armand, on Thursday, November 28, 2024.

It has since become the talk of the town for several significant reasons.

Industry experts affirm that the deal gives UBA Group a strategic position in Europe, as Paris serves as a gateway to the European Union’s vast market. This allows UBA to facilitate trade and transactions between Africa and Europe, driving economic integration between the two continents.

The bank is already at the forefront of fostering economic development in Africa with multiple initiatives, including $6 billion in support of SMEs in partnership with the African Continental Free Trade Area (AfCFTA).

Operating in France is expected to enable the bank to assist African businesses seeking expansion in Europe and vice versa, thereby promoting Africa-Europe partnerships.

Expectations are high not only because of UBA’s pedigree but also due to the influence of Chairman Tony Elumelu, a leading campaigner for shared prosperity in Africa.

Elumelu, the proponent of Africapitalism, argues that the private sector, especially entrepreneurs, catalyzes Africa’s social and economic development. He is also the founder of the Tony Elumelu Foundation (TEF), which has empowered 20,000 young men and women who have created over 40,000 direct and indirect jobs.

“Presence in Paris, a global financial hub, will allow UBA to engage with more multinational corporations, investors, and financial institutions, unlocking significant value for the bank and Africa,” an industry observer noted.

The move will also strengthen UBA Group’s operations in Francophone Africa, where the bank has subsidiaries in 11 French-speaking countries. This success could be replicated in other regions.

A Paris branch will foster closer ties with these markets, ensuring smoother financial transactions, cross-border payments, and trade finance. Improved correspondent banking relationships will establish stronger connections that benefit all regions, industry watchers say.

Already a global player with established footprints in the United States, United Kingdom, and United Arab Emirates, UBA’s expansion to France will boost its global competitiveness, serving over 45 million customers worldwide.

“With operations across Africa, the US, the UK, the UAE, and now France, UBA solidifies its reputation as a truly global African bank,” a source asserted. They added that the Paris branch will allow the bank, led by Group Managing Director Oliver Alawuba, to offer more competitive services in trade finance, treasury, and corporate banking to its global clients.

The consensus is that this move, which expands the global presence of UBA—currently conducting a rights issue to raise N239.4 billion—elevates its status as a major player in bridging financial gaps between Africa and the rest of the world.

UBA is raising N239.4 billion to widen its capacity for growth opportunities and sustain its leadership position. This is through a rights issue of 6,839,884,274 ordinary shares of 50 kobo each at N35.00 per share. Existing shareholders can purchase additional shares in proportion to their current holdings, with one new ordinary share offered for every five existing shares held as of November 5, 2024.