The Vice president of Uganda Retired Major Jessica Alupo has urged women entrepreneurs that when they choose to borrow for business expansion and growth, they should borrow wisely.
‘Before taking the loan, have a clear business plan. Identify how the funds will be used—whether it’s for expansion, acquiring new equipment, or improving product quality. Every shilling borrowed should have a purpose and contribute directly to business growth’ she said while officiating the launch of generating growth opportunities & productivity for women enterprises GROW-Project loan Facility at hotel Africana.
The vice president also asked them to invest in what brings returns. ”Prioritize investments that will yield measurable returns. For instance, purchasing machinery to boost production capacity and drive more sales is a smart use of the loan. Avoid using funds for non-essential or luxury items that do not contribute to business growth or profitability’. She stated.
‘Manage Cash Flow Carefully plan and control the movement of money in and out of your business. Ensure you always have sufficient funds to cover daily operations, pay suppliers, meet debt obligations, and invest in growth. Maintaining strong cash flow is crucial for financial stability, business sustainability, and resilience during challenging times’. She added.
‘‘Leverage Business Development Support Beyond the financing, GROW offers a comprehensive package that includes business training, mentorship and apprenticeship among others. Take full advantage of these services. Strengthening your financial management and marketing skills will maximize the impact of the loan on your businesses’’. The vice president told women in business
The vice president said that the political leaders especially Ministers, Members of Parliament, Local Government leaders their role in the success of the GROW loan cannot be overemphasized. ‘I urge you to actively disseminate information about this opportunity to your constituents. let us ensure that eligible women entrepreneurs are aware of and can access these funds’’. She stated.
To the business community and financial institutions, your partnership in this initiative is crucial for the success of the GROW Loan. I call upon financial institutions to support the women entrepreneurs and ensure the loans reach the intended beneficiaries. Collaborate with women entrepreneurs platforms and other community groups to create trust-based lending mechanisms. Streamline the loan application procedures and provide assistance, such as local language support, to help rural women navigate the documentation and formalities involved in accessing credit. She noted
According to her, the Government of Uganda remains committed to implementing programs that transform women’s lives and contribute to our nation’s economic progress. ‘’Through the GROW Project, we are unlocking opportunities for women entrepreneurs to break through barriers, scale their businesses, and contribute meaningfully to Uganda’s development’’. She said.
‘’For women entrepreneurs who may not qualify for the GROW Loan, there are other valuable loan options available. The Parish Development Model (PDM) is a great choice for those starting out, and despite some initial challenges, we are making progress. In addition, the Emyooga program offers accessible borrowing options for micro entrepreneurs. For those seeking loans exceeding 200 million, the INVITE project and the Uganda Development Bank (UDB) are excellent sources for substantial funding’’. She said
The launched GROW LOAN Facility will be administered by six commercial Banks and these include; Post Bank, Centenary Bank, Finance Trust Bank, Equity Bank and DFCU Bank.
‘On behalf of the Government of Uganda, I extend sincere appreciation to the World Bank for their partnership and continued support. The GROW grant is a testimony to our shared commitment of uplifting women entrepreneurs and promoting inclusive growth. We look forward to continuing our collaboration as we work towards Uganda’s socioeconomic transformation and the attainment of upper-middle-income status by 2040. I also commend the Ministry of Gender, Labour, and Social Development, along with the Private Sector Foundation Uganda (PSFU) for their relentless efforts in bringing this project to life. Your dedication has paved the way for this important initiative’. Alupo said.
‘’Your Excellency, the GROW Project is designed to benefit all women entrepreneurs in Uganda including refugees. As an accelerator for women enterprise development, the Project builds upon the progress that the NRM Government has made in empowering women economically’’. Said Betty Amongi, the Minister for Gender, labour and social development,
She strongly encouraged women entrepreneurs to familiarize themselves with the many services GROW has to offer. ‘For the GROW Loan, all the necessary information is available through the participating banks, GROW Website and GROW focal point persons. We will continue to engage and provide updates to ensure that every woman entrepreneur receives information through the platforms at district level and through the media’. She said.
According to Ruth Aisha Biyinzika Kasolo, the project manager, GROW project is a Government of Uganda initiative that arose out of the need to respond to the needs of women entrepreneurs who want to grow their businesses, sustain their self-employment and create more jobs.
The Project Development Objective (PDO) is to increase access to entrepreneurial services that enable female entrepreneurs to grow their enterprises in targeted locations, including in refugee-hosting districts (RHDs).
Loan amounts ranging from UGX 4 million to 200 million: The wide range of loan amounts allows women to borrow according to their specific business needs. It is a recognition that the women enterprises financial needs for scaling up differ.
Highly competitive interest rate at 10.5% per annum: This low-interest rate reduces the cost of borrowing thus enabling women entrepreneurs to access affordable financing. The resulting lower monthly payments improves cash flow ultimately creating financial stability and business development.
No loan charges: The government will cover all loan-related fees, including processing, legal, and appraisal charges. This ensures that women entrepreneurs receive the full loan amount that they apply and qualify for amount without hidden costs. If the entrepreneur applies for UGX 10 million, she will receive the entire UGX 10 million. This will maximize her working capital and investment opportunities.
Loan repayment period of up to 2 years: The extended loan repayment period gives entrepreneurs ample time to generate returns from their investments as they pay the monthly instalments. This is intended to reduce the financial stress and enable better cash flow management.
Flexible repayment schedules: Tailored repayment plans accommodate the unique cash flow cycles of different businesses. Entrepreneurs can align their payments with their revenue streams, making it easier to stay on track with repayments and avoid financial strain.
Rebate of 5% for on-time loan repayments: Borrowers who consistently make on-time instalment payments until at least halfway through the loan term will receive a performance grant equivalent to 5% of the total loan. This is an incentive for punctual repayment and directly reduces the total interest paid. Diligent borrowers will, therefore, have additional meaningful savings that make the loan more affordable.
