The initiative, funded by the World Bank with a budget of 802 billion Shillings, aims to financially empower women by providing affordable capital. It is implemented in collaboration with the Ministry of Gender, Labor, and Social Development, and the Private Sector Foundation Uganda (PSFU).
As part of the Generating Growth Opportunities and Productivity for Women Enterprises (GROW) initiative, DFCU Bank has allocated 5.4 billion Shillings to support women entrepreneurs through subsidized interest rate loans.
The initiative, funded by the World Bank with a budget of 802 billion Shillings, aims to financially empower women by providing affordable capital. It is implemented in collaboration with the Ministry of Gender, Labor, and Social Development, and the Private Sector Foundation Uganda (PSFU). Five commercial banks, including DFCU, Equity Bank, Centenary Bank, Finance Trust Bank, and Post Bank, each have 22.5 billion Shillings to distribute.
At an event in St. Balikudembe Market (Owino), DFCU Bank’s Executive Director and Chief Financial Officer, Kate Kiiza, emphasized that the initial 5.4 billion Shillings is just a start, with more funds available if needed. She explained that the GROW loans are offered through a revolving fund, featuring benefits like lower interest rates and a flexible repayment system, especially advantageous for the average Ugandan woman entrepreneur.
Kiiza underscored DFCU's commitment to supporting women entrepreneurs and highlighted the bank's 15-year history of empowering women. DFCU has an established Women in Business Advisory Council and programs designed to guide borrowers throughout their journey in the GROW initiative. She also addressed the need for business formalization, emphasizing that women-led businesses should adopt formal systems and keep proper financial records to grow sustainably.
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Interest rates for GROW loans range between 10% and 10.5%, depending on the bank's operations. The project aims to reach 1.6 million women indirectly, supporting over 60,000 enterprises, with a special focus on 280,000 entrepreneurs, including 4,200 refugees and 14,000 women from refugee host communities.
However, some traders, like Linda Kamusiime, expressed concerns about the accessibility of the program for small business owners without formal records. Kamusiime, a cabbage trader, questioned how the initiative could support those like her who do not maintain formal books of accounts, reflecting the challenge of informality within many women-led businesses.
Dennis Kasule Ssebunya
Freelancer