GROW Project recieves a USD 217 million grant.
The government of Uganda is in Partnership with the Private Sector Foundation of Uganda (PSFU), have launched the Generating Growth Opportunities and Productivity for women’s enterprises (GROW) project, a ground breaking loan initiative to scale Women’s enterprises across the country.
The GROW Project launched in 2023 and officially inaugurated by President Yoweri Kaguta Museveni on International Women’s Day, has received 217 million grant from the World Bank for its 5year duration.
Speaking at the launch, Major (Rtd) Jessica Alupo, Vice President of Uganda, asked the World Bank, Ministry of Gender and PSFU for how interest rates which will reduce the cost of borrowing to enable women entrepreneurs to access affordable financing.
She noted that low interest rates improve cash flow ultimately creating Financial Stability and development.”This ensures that women entrepreneurs receive the full loan amount that they apply and qualify for without hidden cost. If the entrepreneurs applies for UGX 10million, she will receive the entire UGX 10million. This will maximize her working capital and investment opportunities,” she said.
Alupo advised women who will access the funds to prioritize investments that will yield measurable returns.
The project funded by the Workd Bank and Implemented by the Ministry of Gender, Labour and Social Development and Private Sector Foundation Uganda (PSFU) aims to support women in transitioning from micro and small to medium sized and large enterprises.
The Minister for Gender, Labour and Social Development, Betty Amongi asked the banks and financial institutions to adopt a customer centered approach. “Let us simplify the application process and make them more accessible, particularly for women in rural areas. Your partnership is crucial, and we look forward to working together as we strive to make a meaningful impact in the lives of our women entrepreneurs. I want you to honor your commitment to remove barriers to access finance for women entrepreneurs. I will be following the performance of the loan scheme closely,”she said.
To be eligible, women must own atleast 51% of the enterprises. Loans will range from shs 4million to shs 200million, repayable with in two years with competitive interest rates of not more than 10.5%. Beneficiaries who repay their loans on time will receive a grant of up to 5% of the loan principal.
The World Bank Country Manager, Rosemary Mukami Kariuki, urged the implementation partners of the GROW Project to ensure that targeted Beneficiaries can seamlessly access the funds. She noted that majority of women led small businesses or startups are often left out because they lack collateral.
The Chairman of the Board of Directors of Private Sector Foundation (PSFU) expressed gratitude to government and the World Bank for entrusting PSFU as a partner in this noble cause. “PSFU is proud to be at the forefront of an initiative that seeks to empower women entrepreneurs with tools they need to expand their businesses and contribute even more significantly to the economy. The GROW loan that we are launching today is one such tool and milestone in this collaboration. It reflects our commitment to ensuring that the Private Sector has access to the resources it needs to grow,” he said.
Dr. Ruth Aisha Biyinzika Kasolo, Project Coordinator, revealed that the project can now access loans from six selected commercial banks; DFCU, Equity, Finance Trust Bank, Centenary Bank, Post Bank and Stanbic Bank. Each bank has received Shs 22.5billion.
Since 1995 when PSFU was founded, it has been Government’s partner for several projects and programmers aimed at strengthening the private sector as an engine of economic growth.
Report compiled by Teddy Namayanja. She’s a staff writer at SML News UG passionate about politics and human rights.
