By Dr Ruth Aisha Biyinzika Kasolo
HABARI DAILY I Kampala, Uganda I The Generating Growth Opportunities and Productivity for Women Enterprises (GROW) project has been a revolutionally to many entrepreneurs who have been maginalised for years.
The project, financed with a $217m grant from the International Development Association of the World Bank, and became effective on 20th January 2023, has the Ministry of Gender Labor and Social Development (MGLSD) as the lead implementer and Private Sector Foundation Uganda (PSFU) as an implementing entity.
It has impacted lives of thousands of women and has facilitated access to entrepreneurial services that enable female entrepreneurs to grow their enterprises, including refugee women and women in host districts.
This project was strategically designed to respond to multiple constraints hindering women entrepreneurs from growing their businesses. This facility, which was unveiled less than two years ago, has spread to 86 districts around Uganda, and counting.
Research has vividly shown that this loan package has positively impacted the businesses of hundreds of women from all over Uganda.
Right from Kampala, Luwero, Masindi, Fort Portal, Lira, Gulu, Tororo, Soroti, Karamoja, Ntungamo, Mbarara, Jinja, Mbale, Kaberamaido, Busia, among many other areas around Uganda, women investors are thankful and are progressively moving to higher levels of economic freedom.
I can proudly say that currently, women numbering 2,175 from 86 districts and 3 cities around Uganda have so far accessed up to sh50b loans. This record
Requirements for access
In order to access this revolutionary financial facility, eligible women entrepreneurs have to provide at least some basic form of security as a demonstration of commitment to repay the loan.
The implementers have strived to make this loan facility vibrant and sustainable by setting collateral requirements which include registered and unregistered land, movable household and business assets were introduced.
However, our recent research has shown that this has become a huddle to many women, and we are now reviewing these requirements with an intention of removing cumbersome requirements. We have decided to revisit this requirement with a possibility of introducing collateral-free loans.
However, this might take abit of time since the central tenet of this intervention is government’s intention to sustain the GROW Loan fund as a revolving fund that will outlive the project and continue to be available through an apex structure.
On account of the low interest rates, the participating financial institutions are carrying all the risk associated with these loans and will be required to pay back all the money that they have obtained.
Numerous success stories have come out, clearly showing that women have been able to access finances through our 6 partner banks, which include Centenary, PostBank, Finance Trust, dfcu Bank, Equity and Stanbic Bank. Hundreds of businesses have been revitalized and multiple dreams fulfilled, as many female entrepreneurs have testified.
