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The GROW Project, which is designed to support women entrepreneurs in Uganda, continues to gain traction, with a notable uptake of loans aimed at helping women scale their businesses.
Dr Ruth Kasolo, the coordinator of the Generating Growth Opportunities and Productivity for Women Enterprises (GROW) Project, provided key insights into the loan uptake, revealing that the amounts disbursed range from Shs 4 million to Shs 200 million.
However, Dr Kasolo clarified that loans under Shs 4 million are not part of the GROW initiative, and women seeking smaller amounts are advised to explore other government programs such as PDM or Emyooga.
“Of the money we have disbursed so far, most women are taking loans ranging from Shs 4 million to Shs 20 million, accounting for about 77% of the total uptake. The average loan size is Shs 16 million,” Dr Kasolo explained.
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The GROW loans have attracted numerous women, particularly those involved in the food industry, including restaurant owners and those running food markets.
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Dr Ruth Aisha Biyinzika Kasolo, the Project Coordinator
These entrepreneurs use the loans to build their stock, purchase essential equipment such as fridges, furniture, and cookers, crucial for expanding their businesses.
Challenges of Collateral and the Need for Support
Despite the high demand for loans and the success of many women-owned businesses, Dr Kasolo highlighted a significant challenge: most women do not have the required collateral to access loans.
This has been a barrier for many potential beneficiaries, especially as commercial banks typically require collateral for loan approval.
In response, the government has directed that microfinance institutions be brought into the process, as they can offer loans without demanding collateral.
“We are calling on men to support their wives with collateral to help them access these loans and expand their businesses,” Dr Kasolo urged.
The initiative has also seen considerable success, with 53% of the women receiving loans being married, demonstrating the importance of male involvement in empowering women.
The GROW Project’s Impact on Women’s Independence
The GROW Project was launched to support women who have already established businesses and are now seeking to grow and transition from informal businesses to Small and Medium Enterprises (SMEs).
Dr Kasolo noted that the project is distinct from other government initiatives like PDM and Emyooga, as it targets women who have reached a level of business maturity and are ready for growth.
While the GROW Project has faced some criticism for its paperwork and the higher interest rates compared to other initiatives, these aspects are intentional to ensure that the loans benefit women who are serious about growing their businesses.