KAMPALA: Uganda government has today disbursed UgSHS 29.1 billion to the five selected commercial banks where women entrepreneurs in small and medium business space will be accessing cheap loans to boost their business courtesy of World Bank’s Generating Growth opportunities and productivity of women enterprises project (GROW).
The five banks selected for the first phase include, finance trust bank, Post Bank, Centenary bank, Equity Bank, and DFCU bank.
Dr. Ruth Aisha Biyinzika Kasolo, the Project Coordinator said that the project selected only banks with women products including those that have limited or no collateral requirements.
According to her, Women will borrow money at a very affordable interest of 10.5 per year for a period of up to 2 years.
‘’Women, who repay the instalments consistently for half of the period the have borrowed will receive a GROW BONUS as a reward for their good performance and this will range from 5% for all women, 8% for refugee women entrepreneurs and those in refugee hosting communities, 10% for those consider as special cases, PWDs, Karamoja subregion, Busoga-Bukedi subregions’’. Dr Biyinzika state during a press conference held in Kampala.
She added that any women entrepreneur, including women leaders with an eligible business, will be able to apply to borrow GROW loans.
She said apart from the five banks, they are also planning to add Stanbic and MFIs or SACCOs that will be selected through a competitive process and published nationwide in mass media.
‘’The loan will range from Ugshs 4 million up to 200 million’’ she noted. Adding that level one loans will range between Ugshs 4million to 20 million, level 2 loans will range between 20 million Uganda shillings to 40m and level 3 loans will range from 40m to 200. Level one will target 17,000 beneficiaries, level 2 will target 10,500 and level 3 will target 1,250.
Disbursed so far per bank include, Ugshs 6.84 billion to (centenary bank, Post bank and Finance trust), Ugshs 6.48 billion to DFCU and Ugshs 2.05 billion to equity bank.
The formal Launch of the GROW loan is scheduled for 28th August 2024 and it will be officiated by her Excellency the vice president of Republic of Uganda Hon. RTRD Jesicca Alupo.
The Generating Growth Opportunities and Productivity for Women Enterprises Uganda [GROW] Project is funded by the World Bank supports existing businesses.
The project was launched in 2023 with the objective to increase access to entrepreneurial services that enable female entrepreneurs to grow their enterprises including in refugee host districts.
