Kampala, Uganda
By John Kusolo
In a significant move towards empowering women entrepreneurs in Uganda, the Vice President of Uganda, H.E. Jessica Alupo, officially launched the GROW Financing Facility, commonly referred to as the Grow Loan project. This initiative is designed to provide substantial financial support to women-led businesses across the country, offering loans that range from as low as UGX 4 million to as high as UGX 200 million
.
The GROW Financing Facility aims to facilitate the growth of women-owned businesses, helping them transition from micro to small, and from small to medium enterprises. This project is particularly noteworthy as it addresses a critical need in Uganda’s entrepreneurial landscape: the availability of affordable financing options tailored specifically for women.
Key Features of the Grow Loan
The GROW Loan, available at an attractive annual interest rate of 10.5%, will be disbursed through five carefully selected commercial banks: DFCU Bank, Equity Bank, Finance Trust Bank, PostBank, and Centenary Bank. This ensures that women entrepreneurs across Uganda have easy access to these financial resources, regardless of their location.
Each bank is prepared to offer various loan products under the GROW Financing Facility, including agriculture production loans, business growth loans, and trade/asset financing loans. These loans have been designed with flexible tenures and collateral requirements to cater to the diverse needs of women entrepreneurs.
Financial Backing and Implementation
The GROW Loan project, which is a five-year initiative running until December 2027, has received robust financial backing from the World Bank. A total of USD 217 million has been injected into the project, highlighting the significant commitment towards fostering women's economic empowerment in Uganda.
The implementation of the GROW project is being overseen by the Private Sector Foundation Uganda (PSFU). To ensure the smooth disbursement of loans, the GROW project has already deposited UGX 22.5 billion into each of the five selected banks. This strategic move guarantees that funds are readily available for eligible women entrepreneurs who meet the set criteria.
Eligibility and Loan Processing
To qualify for the GROW Loan, women entrepreneurs must own registered businesses and hold a majority share of at least 51% in their enterprises. This criterion is aimed at ensuring that the loans directly benefit women and contribute to increasing female participation in Uganda’s economy.
Dr. Biyinzika, a key figure in the implementation of the GROW project, has confirmed that eligible women entrepreneurs can begin processing their loans immediately. The participating banks have streamlined their processes to ensure quick and efficient loan approvals, making it easier for women to access the funds they need to grow their businesses.
Impact on Uganda’s Economy
The GROW Financing Facility is more than just a loan program; it is a strategic initiative designed to transform Uganda’s economy by empowering women entrepreneurs. By providing access to affordable financing, the project is expected to create jobs, boost income levels, and drive economic growth.
In the long term, the GROW Loan project is poised to reduce the gender gap in business ownership and management in Uganda. As more women gain access to financial resources, they will be better positioned to compete in the market, innovate, and expand their businesses.
The launch of the GROW Financing Facility marks a pivotal moment in Uganda’s economic development. It underscores the government’s commitment to fostering an inclusive economy where women entrepreneurs can thrive. With substantial financial backing from the World Bank and the effective implementation by PSFU, the GROW Loan project is set to make a lasting impact on the lives of many women and the broader Ugandan economy.
Women entrepreneurs are encouraged to take advantage of this opportunity, visit the participating banks, and access the financial support they need to grow their businesses. The future of Uganda's economy is bright, and women entrepreneurs will play a crucial role in shaping it.
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