To increase uptake of the Generating Opportunities and Productivity for Women
Enterprises (GROW) initiative fund, the government will bring on board Savings and
Credit cooperatives (SACCOs) as an additional channel for beneficiaries to
access funding.
The enrollment of SACCOs will begin in December, according to
Minister of Gender, Labor, and Social Development, Betty Amongi.
GROW, a
World Bank and government initiative valued at 806 billion shillings
(USD 217 million), is being implemented by the Private Sector Foundation (PSFU) and
the Ministry of Gender, Labor, and Social Development.
The program aims to
directly support at least 280,000 women entrepreneurs across up to 60,000
business enterprises, including refugee-owned ventures, with a broader goal of
indirectly benefiting over 1.6 million women in business.
Since
August, the fund has disbursed 18.98 billion Shillings of the 26 billion allocated
for the first phase. This amount has been provided to at least 1,193
entrepreneurs, primarily in urban and peri-urban settings, through five
contracted commercial banks. The banks are Centenary Bank, Equity Bank, DFCU
Bank, Finance Trust Bank, and Post Bank.
Amongi said that to encourage
uptake, especially in rural areas, the government’s decision to involve SACCOs
addresses the challenge of collateral requirements that often hinder access to
funding.
//Cue in; “What
we have …
Cue out; …of
commercial banks,”//
Amongi also said that agreements are finalized, and a list of participating
SACCOs will be displayed soon. She added that in a move to ensure equitable distribution,
future fund allocations will be subdivided equally across various parts of the
country, as directed by the cabinet. "Cabinet has instructed us to segment
funds equally across sub-regions. Starting this quarter, we’ll divide the
country into 19 zones, each receiving an equal share of the funds
released," she stated.
"The
only issue would be if a sub-region fails to absorb its allocation within a
quarter; however, the principle of equal distribution remains," she added.
She further disclosed plans to establish an apex body that will collect GROW fund
recoveries, although its structure will be determined jointly by the Ministries
of Gender and Finance. "We will recover funds into a government body
before deciding whether to redeploy or allocate them through other
mechanisms," Amongi noted.
To support mobilization and effective promotion, 146 motorcycles have been
distributed to district Chief Administrative Officers (CAOs) and accounting
officers in cities, with each vehicle to be serviced and fueled by the
government.
By expanding
the GROW fund distribution to SACCOs, the government aims to improve rural
access to funding and empower a larger segment of women entrepreneurs. With
equitable fund allocation and increased on-the-ground support, the initiative
is expected to enhance economic opportunities for women across Uganda and make
meaningful strides in women’s economic empowerment.
Dennis Kasule Ssebunya
Freelancer