Relaxed GROW project loan requirements widens access for entrepreneurs

Arua, Uganda | URN | Women entrepreneurs in West Nile are expected to have improved access to loans under the government’s Generating Growth Opportunities and Productivity for Women Entrepreneurs (GROW) Project.

This comes after authorities relaxed some lending conditions that had prevented potential beneficiaries from accessing the funds.

The changes include reducing the minimum loan amount from four million shillings to two million shillings for Ugandan women and one million shillings for refugees.

Savings and credit cooperative organisations (SACCOs) and some microfinance institutions have also been brought on board to expand access to the loans.

The changes follow complaints from women entrepreneurs and local leaders that the initial requirements, including the terms imposed by participating commercial banks, were too stringent.

Fridah Mboni, the GROW Project Refugee Specialist, said the revised conditions are intended to make the funds more accessible to eligible women entrepreneurs.

Mboni said some SACCOs, including Koboko SACCO, had been brought on board to enable more women to access the loans.

This follows concerns that commercial banks charged high interest rates and prioritised their own loan products over those offered under the GROW Project.

The GROW Project is a government initiative funded by the World Bank and implemented by the Ministry of Gender, Labour and Social Development in partnership with the Private Sector Foundation Uganda. It operates across districts, municipalities and cities.

The project targets women entrepreneurs whose businesses have been operating for more than a year and who can provide clear registration and transaction records.

Uganda Radio Network (URN) established that only eight women entrepreneurs in Obongi District had accessed the funds by the time of compiling this report.

Local leaders attributed the low uptake partly to the initial lending conditions.

Amen Elizabeth, Chairperson of the Obongi Nile Women Entrepreneurs Platform, said the relaxed conditions, including the involvement of SACCOs and other financial institutions, could increase the number of women accessing the loans.

//Cue-in: “The one challenge..

Cue-out: …from this project”//

In Arua, GROW Project focal person Badaru Florence said commercial banks’ requirements, particularly demands for land titles as collateral, had made it difficult for some women to qualify for loans.

She said bringing SACCOs and other financial institutions on board could ease some of these challenges.

In Zombo District, Assistant Resident District Commissioner Bruno Manano said local authorities would intensify mobilisation to reach more women who qualify for the project.

Manano said the district would work with the GROW Project focal person to identify eligible entrepreneurs and help them understand the requirements.

Meanwhile, the Ministry of Gender, Labour and Social Development has designed Business Competition Grants under the GROW Project to support women-owned businesses.

The grants are expected to open for applications following the publication of an official advertisement..