Dr. Ruth Aisha Biyinzika Kasolo addressing the members of the media recently
HABARI DAILY I Kampala, Uganda I The six participating financial institutions (PFIs) will soon receive another disbursement of funds through the Generating Growth Opportunities and Productivity for Women Enterprises (GROW), officials have disclosed
Dr. Ruth Aisha Biyinzika Kasolo, the GROW project coordinator said the PFI’s which include Centenary Bank, DFCU Bank, Equity Bank, Finance Trust Bank, Post Bank and Stanbic Bank have already lined up women beneficiaries. Their interest rate has been capped at 10.5% per year.
She said due to the increasing demand for GROW loans, the project has spread its wings to 146 districts including, 42 Municipalities, 11 cities, and 13 refugee-hosting districts, officials have disclosed.
She said in August 2024, the Government of Uganda approved an initial allocation of sh98.55 billion to commercial banks, to give out to enterprising women.
“This ensured that there are sufficient resources to meet the growing demand for business financing. The uptake has been good, and preliminary research has shown that the beneficiaries have put the money to good use,” Dr Biyinzika said in a recent interview.
She added that this intervention has addressed a key access barrier of high interest rates which borrowers faced for years, while also enabling financial institutions to tailor their products to meet the unique needs of women entrepreneurs.
Dr. Biyinzika and Gender minister, Betty Amongi touring stalls of GROW Project trainees
“By November 2024, a total of 1,883 women entrepreneurs had been supported. More are still lined up and will benefit from these funds,” she said.
Dr Biyinzika said that drawing lessons from similar interventions delivered through financial institutions, under the GROW Project, the Government put in place an arrangement where funds are disbursed in tranches with corresponding targets over a given period.
“Women entrepreneurs have been able to implement their dream projects. They have been able to access loan amounts ranging from Sh4 million to Sh200 million, with collateral requirements,” she said.
She noted that this requirement was put in place so that a revolving fund, where the financed received by the first beneficiaries will be pooled for others to also benefit.
“It’s crucial for loans to women entrepreneurs to be secured with collateral such as business assets, registered and unregistered land, or chattels. We need to see continuity, with hundreds more women benefiting every passing year,” she said.
As part of the same arrangement, the project contracted an independent firm (KPMG), to undertake due diligence and verify the loan funds given out by the commercial banks before the release of additional funds to the specific banks that have depleted the total amount initially released.
“All procedures have been followed, meaning that replenishment of the commercial banks with more funds for disbursement to women entrepreneurs will be soon.
GROW Project trainees showing their products to Dr. Biyinzika and Amongi recently
The GROW Project, which aims to increase access to entrepreneurial services that enable female entrepreneurs to grow their enterprises, is a government initiative funded by a grant from the International Development Association of the World Bank.
It is implemented by the Ministry of Gender, Labour, and Social Development (MGLSD) in collaboration with the Private Sector Foundation Uganda (PSFU).
The initiative combines skills training, financial inclusion, infrastructure development, and policy formulation to overcome barriers to women’s economic progress.
The project facilitates access to affordable financing for women entrepreneurs through partnerships with six PFIs or commercial banks, which dispense the funds to women.
