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Ugandan men to assist their wives in accessing crucial loans to help grow their businesses
Dr Ruth Kasolo, the coordinator of Uganda's Generating Growth Opportunities and Productivity for Women Enterprises (GROW) Project, made this call, while speaking at a recent engagement.
Dr Kasolo says GROW loan is designed for women who have already established their businesses and are looking to take them to the next level.
“The GROW loan is not for the lowest woman; it is for a woman with a business who is ready to take it to another level,” Dr Kasolo stated.
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She explained, however, that many women entrepreneurs who qualify for the loan have been successful in their businesses but lack the necessary collateral security required by some of the banks involved in the project.
As a result, she appealed to men to help their wives provide collateral, which would allow them to access the loans and expand their operations.
The Challenge of Collateral and Access
Dr Kasolo revealed that over the first two years of the GROW Project, the demand for loans has exceeded expectations.
However, the absence of collateral has proven to be a major barrier for many women, even though they have thriving businesses.
According to Dr Kasolo, 53% of the women who have received loans under the project are married.
“We are calling on the men out there to help their wives with collateral so that they can access these loans and expand their businesses,” Dr Kasolo urged.
She pointed out that this involvement from men is crucial in ensuring that more women benefit from the support provided by the GROW project.
Focus on Women’s Independence
The GROW Project was launched with the aim of supporting women who have already started businesses and are looking to transition from informal operations to Small and Medium Enterprises (SMEs).
This initiative differs from other government programmes like PDM and Emyooga, as it focuses on women who have established themselves and are ready for growth.
The project partners with six commercial banks that apply their own lending procedures, which include a minimal interest rate of 10%.
While the programme has been criticised for requiring extensive paperwork and for its higher interest rates compared to other initiatives, Dr Kasolo explained that these features were intentional.
They ensure that the project targets women who are committed to business growth, not those who are still in the initial stages of establishing their ventures.
The GROW Project aims to offer substantial, growth-oriented loans that help women build sustainable businesses, ultimately contributing to Uganda's economic development.