GROW Project to Empower Women Entrepreneurs with Affordable Loans

Vice President Jessica Alupo launched the Generating Growth Opportunities and Productivity for Women Enterprises (GROW) project at an event held at Hotel Africana on Wednesday 28th August 2024. The GROW project is an initiative by Ugandan government, in collaboration with the Private Sector Foundation Uganda (PSFU).

The initiative, received a $217 million grant from the World Bank for a duration of five years. It aims at empowering women entrepreneurs by providing them with affordable loans, enabling them to transition from micro to small and medium-sized enterprises.

Minister of Gender, Labour, and Social Development Betty Amongi said the project is designed to enhance access to financing for women entrepreneurs by offering loans through five selected commercial banks: Stanbic Bank, DFCU, Equity, Finance Trust Bank, and Centenary Bank. 

Amongi noted that the banks have each received UGX 22.5 billion to support the initiative. “Loans will range from UGX 4 million to UGX 200 million, with competitive interest rates of 10% to 10.5%. Additionally, women entrepreneurs who repay their loans on time will be eligible for a grant of up to 5% of the loan principal,” Amongi said. "To be eligible for these loans, women must own at least 51% of their enterprises," She said. 

The project aims to reach over 28,000 women-led businesses across the country by its conclusion in 2027. 
While speaking at the launch, Alupo advised women entrepreneurs to maximize this opportunity, emphasizing the importance of proper planning, investing in profitable ventures, managing cash flows, and utilizing business development support.

This initiative is seen as a significant step toward reducing the financial barriers women entrepreneurs face, particularly those in rural areas. The GROW project also focuses on supporting women in sectors traditionally dominated by men, such as tourism, manufacturing, and processing. 

It should be noted that the GROW project was inaugurated by President Yoweri Museveni in 2023.

Minister Among emphasized that the GROW project will not only provide financial support but also foster a change in mindset, encouraging women to prioritize investments that drive business growth. 

She said the government will cover all loan-related fees, ensuring that women receive the full amount of their loans without hidden costs, further easing their financial burden.

“The launch of the GROW project underscores the Ugandan government's commitment to fostering gender equality and economic empowerment for women, aiming to create sustainable development and financial independence for women entrepreneurs across the country,” she said.

The vent was attended by representatives from various government departments and agencies.