The government of Uganda in partnership with the Private Sector Foundation of Uganda (PSFU), have launched The Generating Growth Opportunities and Productivity for Women Enterprises (GROW) project, a groundbreaking loan initiative to scale women’s enterprises across the country.
The project funded by the World 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.
Speaking at the launch, Maj (Rtd) Jessica Alupo, Vice President of Uganda, extended commendation to World Bank, Ministry of Gender and PSFU for low-interest rates which will reduce the cost of borrowing thus enabling women entrepreneurs to access affordable financing. She noted that the resulting lower monthly payments improve cash flow ultimately creating financial stability and business development.
Alupo stated that the GROW Project will cover all loan-related fees, including processing, legal, and appraisal charges.
“This ensures that women entrepreneurs receive the full loan amount that they apply and qualify for without hidden costs. If the entrepreneur applies for UGX 10 million, she will receive the entire UGX 10 million. This will maximize her working capital and investment opportunities,” she said.
She advised women who will access the fund to prioritize investments that will yield measurable returns. “For instance, purchasing machinery to boost production capacity and drive more sales is a smart use of the loan. Avoid using funds for non-essential or luxury items that do not contribute to business growth or profitability.”
Betty Amongi, Minister of Gender, Labor and Social Development, said the project seeks to increase access to entrepreneurial services to enable women entrepreneurs to grow their enterprises. Your Excellency, you will recall,
She asked the banks and financial institutions, to adopt a customer- centered approach.
“Let us simplify the application processes 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 honour your commitment to remove barriers to access to finance for women entrepreneurs. I will be following the performance of this Loan scheme closely,” she said.
The World Bank Country Manager, Rosemary Mukami Kariuki, urged the implementing partners of the GROW Project to ensure that targeted beneficiaries can seamlessly access the funds. According to Kariuki, majority of women-led small businesses or startups are often left out because they lack collateral.
Humphrey Nzeyi, the Chairman of the Board of Directors of Private Sector Foundation Uganda (PSFU), expressed gratitude to Government and the World Bank for entrusting PSFU as a partner in the noble cause.
“PSFU is proud to be at the forefront of an initiative that seeks to empower women entrepreneurs with the 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 a 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.
Nzeyi revealed that since its founding in 1995, PSFU has been Government’s partner for several projects and programmes aimed at strengthening the private sector as an engine of economic growth.
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. Each bank has received Shs 22.5 billion.
To be eligible, women must own at least 51% of the enterprise. Loans will range from Shs 4 million to Shs 200 million, repayable within two years with competitiveinterest rates of not more than 10.5%. Additionally, beneficiaries who repay their loans on time will receive a grant of up to 5% of the loan principal.
The GROW project, launched in 2023 and officially inaugurated by President Yoweri Kaguta Museveni on International Women’s Day, has received a USD 217 million grant from the World Bank for its 5-year duration.
