KAMPALA – Women entrepreneurs in Uganda are leveraging the Grow Loans initiative to boost their businesses, with a significant majority investing in trade and agriculture.
According to data from the Private Sector Foundation Uganda (PSFU), 48% of women who have accessed the Grow Loans have channeled the funds into trade, while 26% have invested in agriculture.
Business services also emerged as a key sector, with 15% of women allocating their loans to this area.
The Grow Loans initiative, launched by the Ugandan government, aims to empower women entrepreneurs by providing them with affordable credit. The program has disbursed over UGX 43.9 billion to 2,073 women entrepreneurs across the country.
The majority of the loans, 58%, have been disbursed to women at the micro-enterprise level, with loan amounts ranging from UGX 4 million to UGX 20 million. The average loan size is UGX 16.5 million.
Speaking to project beneficiaries from Greater Kampala area, Ms. Betty Amongi, the Minister of Gender, Labour and Social Development, hailed the Grow Loans initiative as a major success, citing its transformative impact on women entrepreneurs.
Amongi congratulated them on acquiring the financing and cautioned them to repay their loans on time, ensuring the sustainability of the program for other aspiring women entrepreneurs.
She said the program has also made significant strides in reaching its intended beneficiaries, with 64 loans disbursed to women in refugee-hosting districts.
Additionally, 41% of borrowers are new to formal banking, highlighting the program’s success in integrating women into the formal financial system.
Amongi was impressed by the success stories shared by the women, detailing how the Grow Loans had fueled the growth of their businesses. She advised them to explore additional services under the Grow initiative, set to be unveiled soon.
The event was also attended by the State Minister for Labour, Industrial Relations and Productivity, Esther Anyakun, the CEO of the Private Sector Foundation Uganda (PSFU), and representatives from the managing directors of Centenary Bank and Finance Trust Bank.
All participating women were given the opportunity to complete a needs assessment tool, which will guide future interventions from other components of the project.
The Grow Loans initiative has disbursed over UGX 43.9 billion to 2,073 women entrepreneurs across Uganda, with trade and agriculture emerging as the dominant sectors.
The Grow Loans initiative is being implemented through seven Participating Financial Institutions (PFIs), including Centenary Bank, Finance Trust Bank, Post Bank, DFCU Bank, Equity Bank, and Stanbic Bank.
The program has been rolled out in various regions across the country, including Greater Kampala, Central, Eastern, Northern, and Western Uganda. Specifically, the program has reached women entrepreneurs in areas such as Greater Masaka, Ankole, Bunyoro, Rwenzori, Kigezi, Arua, Acholi, Lango, Karamoja, Teso, Bugishu, Busoga, Bukedi, Tooro, Greater Mubende, and Greater Luweero.
One of the key features of the Grow Loans initiative is its competitive interest rate of 10% per annum, with lending periods ranging from 6 months to 2 years. The program also does not charge bank processing fees, except for statutory charges.
The government has committed UGX 120 billion to the Grow Loans initiative, with UGX 50.1 billion already disbursed to the PFIs as of December 31, 2024.
While the program has made significant progress, challenges remain.
The minister said only 7% of borrower businesses are registered, highlighting the need for business formalization support. Additionally, there is a strong demand for business management training, product certification, and marketing support.
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