By URN
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.
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.
