The Generating Growth Opportunities and Productivity for Women Enterprises (GROW) Project was established by the government with a focus on lending loans dubbed “GROW Loan” to women enterprises of different categories designed to respond to multiple constraints hindering women in entrepreneurship from growing their businesses that include but are not limited to inadequate business management skills; lack of access to affordable capital; limited access to common user manufacturing infrastructure and negative social norms that affect their participation in business.
However, with the unique features of the constraints faced by women in ethnic minorities and regions with higher poverty levels, the Ministry of Gender, Labour, and Social Development has encouraged women from such categories to embark on the proper use of the loan including repayment as scheduled to benefit from the increased rewards that are higher from other types of women entrepreneurs.
According to the ministry’s updated report accessed by this website, the GROW project that is implemented in partnership with the Private Sector Foundation Uganda through the Participating Financial Institutions will see women from Karamoja, Busoga and Bukedi regions receive 10% grant reduction while those from ethnical minorities and refugee host communities will receive 8% and others will receive 5%.
“It should be noted that women entrepreneurs who will pay back their loans as scheduled, halfway through their loan period will receive a grant/reduction of their loan value by 5%. As an affirmative action, refugee women and those in refugee host communities that will pay well will also receive a grant of 8% of their loan value, while women entrepreneurs from ethnic minorities and those from Karamoja, Busoga and Bukedi regions will receive grants of 10% of their loan value as a reward for good performance. Studies conducted by the Uganda National Bureau of Statistics (UBOS) identified the regions mentioned above as having relatively higher poverty levels” the report partly reads.
“I would like to inform the public that in the current design of the GROW Loan, Participating Financial Institutions are bearing the entire GROW loan risk and in case they lend money to a woman entrepreneur and they do not repay the loan or a part thereof, the financial institutions are required to absorb the credit losses. The financial institutions are therefore taking the responsibility of assessing creditworthiness. The GROW loan, therefore and by the Bank of Uganda Regulations, requires appropriate collateral” she said
Grace Aciro, who runs a small business producing organic skincare products in Lira district, expressed her gratitude for the GROW Project. “This platform has given me the visibility and confidence I need to expand my business. It’s encouraging to see so many women like myself taking bold steps in entrepreneurship,” she said.
While in Katakwi district during a sensitization workshop Anna Akello, a participant who exhibited her line of handmade jewelry, expressed her excitement about the opportunities the GROW Project is creating. “This workshop has given me invaluable insights and the confidence to expand my business. It’s inspiring to see so many women coming together to support each other,” she shared.
The event concluded with a networking session, providing the women with an opportunity to connect, share ideas, and form partnerships. The positive energy and enthusiasm among the participants were palpable, signaling a promising future for women entrepreneurs in Katakwi.
Through the GROW Project, the government signed agreements with the initial five (05) Commercial Banks valued at UGX 98.55 billion of which UGX 26.052 billion was advanced to the Participating Financial Institutions (PFIs) in August 2024.
According to the report, by September 25, 2024, UGX 18.98 billion had been lent out to 1,193 women entrepreneurs of these, 995 (83%) women entrepreneurs received loans in the category of UGX 4-20 million with the value of UGX 9.03 billion; 132 (11%) women entrepreneurs borrowed amounts in the range of UGX 20-40 million with the total amount of UGX 3.97 billion while 66 (5.5%) borrowed under the category of 40-200 million with a value of UGX 5.987 billion.
The GROW funds are disbursed in tranches with corresponding targets over a given period. An independent firm (KPMG), was contracted to undertake due diligence and verify the loan funds given out by the Participating Financial Institutions before the release of additional funds to the specific banks that have depleted the total amount initially released.
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