Aggrey Kibenge, the Permanent Secretary in the Gender Ministry, revealed that over 1,100 women entrepreneurs had benefited from the project between August and September.
The Ministry of Gender, Labor and Social Development has disbursed 18.98 billion Shillings to over 1,100 women entrepreneurs under the Generating Growth Opportunities and Productivity for Women Enterprises (GROW) Project.
The International Development Association of the World Bank funds the project.
Under the initiative, the government aims to support women, including refugees, through increasing their access to entrepreneurial resources to grow their businesses.
The project is implemented by (MGLSD) in partnership with the Private Sector Foundation Uganda (PSFU) through the Participating Financial Institutions (PFIs).
In a press release on the project's progress, Aggrey Kibenge, the Permanent Secretary in the Gender Ministry, revealed that over 1,100 women entrepreneurs had benefited from the project between August and September.
“By September 25, 2024, the funds had reached 1,193 women entrepreneurs. Of these, 83% received loans between 4 million and 20 million shillings. Loans ranging from 20 million to 40 million shillings were extended to 132 women, while 66 women accessed larger loans of up to 200 million shillings,” he said.
Kibenge outlined several benefits designed to reward prompt loan repayment.
“Women who repay on time will see a reduction of 5% on their loan value. Refugee women and those from the most impoverished regions, such as Karamoja, Busoga, and Bukedi, are eligible for grants reducing their loan burden by up to 10%. He added that the funds are being disbursed through 279 branches of these PFI’s across the country, with microfinance institutions and SACCOs being brought on board to reach underserved areas.
About the collateral concerns which had been a barrier for many women, Kibenge said that the government has worked with financial institutions to accept alternative forms of collateral, such as untitled land, business assets, and group guarantees.
According to Kibenge, the adjustments aim to make loans more accessible to women transitioning from smaller government programs like the Parish Development Model (PDM) and Uganda Women Entrepreneurship Program (UWEP).
Two of the five banks Centenary Bank and Finance Trust Bank have already exhausted their initial allocation of six billion shillings each.
KPMG is currently conducting due diligence on the loan disbursement before releasing the next funds to the two institutions.
Beyond financial assistance, the GROW project is also offering entrepreneurship training and technical business support. Currently, more than 4,000 women have received training in business skills, and the project is working with various Ugandan agencies to help entrepreneurs with business registration, certification, and product development.
The GROW project continues to roll out across Uganda, with more services planned to be available by next month. The initiative is not only enhancing women’s access to capital but also providing them with the technical and business skills necessary for long-term success. All services under the project, including training and loans, are provided free of charge.
Dennis Kasule Ssebunya
Freelancer