Government Seeks to Ease Collateral Requirements for Women Entrepreneurs Under GROW Project

The Ugandan government is exploring new arrangements with the World Bank to reduce collateral requirements for women entrepreneurs accessing funds under the Growth Opportunities and Productivity for Women Enterprises (GROW) project. This move aims to enhance the accessibility of financial resources for women-led businesses and boost economic growth.  

During a session with the Public Accounts Committee, it was revealed that by the end of last year, only 50.1 billion shillings out of the 12 billion shillings allocated had been disbursed. The low absorption rate among women beneficiaries has raised concerns about the effectiveness of the program.  

Dr. Ruth Aisha Kasolo, the GROW Project Coordinator, reported that 2,175 women have benefited from the $217 million World Bank grant since its inception. However, Members of Parliament (MPs) have urged the project team to consider alternative disbursement methods for regions with limited access to banking services.  

A report presented to the committee highlighted that, out of six participating banks, Stanbic Bank had not disbursed any funds to beneficiaries. While all 19 regions have received funds, some districts recorded zero disbursements, prompting MPs to question the equity and rationale behind the distribution process.  

The GROW project provides financial support ranging from 4 to 200 million shillings to women entrepreneurs. The government’s proposed changes aim to address the challenges faced by women in accessing these funds, particularly the stringent collateral requirements that have hindered many from benefiting.  

As the government works to refine the GROW project, stakeholders remain hopeful that the new arrangements will empower more women entrepreneurs, drive economic growth, and reduce gender disparities in business opportunities.