Govt commits to aid growth of women-led enterprises

In a bid to facilitate the growth of women-led businesses, the government has let-out Shs 50 billion to the 2,017 women-led enterprises in Uganda under the GROW project, Betty Amongi, the minister of Gender, Labour and Social Development, said.

Launched by President Yoweri Museveni in March 2023, the GROW project is a government initiative funded by a grant from the International Development Association of the World Bank. The project aims to increase access to entrepreneurial services that enable female entrepreneurs to grow their enterprises, including refugee women and women in host districts.

The project was designed to address multiple constraints hindering women entrepreneurs from growing their businesses. Some of these constraints include: inadequate business management skills; lack of access to affordable capital; limited access to common user manufacturing infrastructure; and negative social norms that affect their participation in business.

As of January 30, 2025, Amongi said, government, through six financial institutions, had disbursed a total of Shs 50 billion to Centenary Bank, Finance Trust Bank, PostBank, KCB Bank, Equity Bank and Stanbic Bank.

Amongi said this financial year, the government allocated Shs 98.8 billion of the Shs 260 billion set out for lending under the Grow project. However, the funds have been depleted within a short period of time. The remaining funds will be disbursed following a forensic audit to ensure that the loans are reaching the right beneficiaries.

“I am pleased that the initial funds were utilized so quickly because it emphasizes the urgent need for investment in women’s economic empowerment. If we want women to succeed in business, we must invest more in accessible financing options,” she said.

“We have more demand than supply. Some people still doubt the project, but the success stories of women who have received GROW loans prove that we are reaching the right target group. That is what matters most to me,” Amongi said at Hotel Africana.

Prior to the launching of the project; government conducted an in-depth study to design an effective program. The research revealed that lack of capital is not the only barrier women face in business. Other challenges include inadequate business management skills, limited access to equipment, certification hurdles, lack of shared facilities, and infrastructure gaps.

In addition to loans, the project supports women in certifying their products, registering businesses, and gaining essential skills such as book-keeping and financial management and encourages women to collaborate, share experiences, mentor each other and explore international markets for their products.

“We acknowledge that banks require collateral to mitigate risk. While collateral is necessary, we are exploring ways to make it more accessible and reasonable for women entrepreneurs,” she said.

She expressed the government’s commitment to ensure that these funds reach all regions of Uganda. “We have developed a formula to distribute funds across the 19 sub-regions, considering population and the number of women in business in each area, she said.