Alupo launches sh300b GROW project to support women entrepreneurs

_________

KAMPALA - Vice President Jessica Alupo on Wednesday, August 28, 2024, afternoon launched the Generating Growth Opportunities and Productivity for Women (GROW) enterprises loan programme worth over sh300b and said this was a major milestone in empowering women with the financial tools needed to drive business growth, create jobs and, ultimately contribute to national development.

“I extend sincere appreciation to the World Bank for their partnership and continued support. The GROW grant is a testimony to our shared commitment to 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,” Alupo said at the function held at Hotel Africana in Kampala.

PSFU Board Chairperson Humphrey Nzeyi appends his signature as, (L-R): Vice Chairperson Sarah Kagingo, World Bank Uganda, Country Director Mukami Kariuki, Gender, Labour and Social Development Minister Betty Amongi and H.E Jessica Alupo, the Vice President of the Republic of Uganda look on during the launch of the implementation of the GROW Loan project at Hotel Africana on Wednesday, August 28, 2024. (Credit: Mpalanyi Ssentongo)

Alupo also commended 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.

She noted that 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 stated.

VP Alupo (2nd left) with the Minister of Gender, Labour and Social Development Hon.Betty Amongi (L), PSFU Board Vice Chairperson Sarah Kagingo and the Chairperson Humphrey Nzeyi (R) during the launch of the implementation of the GROW Loan project at Hotel Africana on Wednesday 28th August 2024. (Credit: Mpalanyi Ssentongo))

She urged the women to plan their borrowing wisely, invest in what brings return, manage cash flows, and leverage business development support.

“To the political leaders: Ministers, Members of Parliament, Local Government and all leaders; your role in the success of this GROW loan cannot be overemphasised. 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,” Alupo said.

The 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.

(L-R) PSFU Board Chairperson Humphrey Nzeyi, Vice Chairperson Sarah Kagingo, World Bank Uganda, Country Director Mukami Kariuki, Gender, Labour and Social Development Minister Hon.Betty Amongi and H.E Jessica Alupo, the Vice President of the Republic of Uganda after the launch of the implementation of the GROW Loan project at Hotel Africana on Wednesday, August 28, 2024. (Credit: Mpalanyi Ssentongo)

The GROW Loan is an affordable facility aimed at boosting the growth and expansion of women entrepreneurs plus their enterprises.

Alupo noted that the GROW loan facility that had been launched presented numerous opportunities for women entrepreneurs and cited some including;

Loan amounts ranging from sh4m to sh200m: 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.

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.

VP Alupo is being received by gender minister Betty Amongi, among other officials. (Credit: Mpalanyi Ssentongo)

The resulting lower monthly payments improve 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 for and qualify for the amount without hidden costs.

If the entrepreneur applies for shillings 10 million, she will receive the entire shillings 10 million. This will maximize her working capital and investment opportunities.

A loan repayment period of up to 2 years gives entrepreneurs ample time to generate returns from their investments as they pay the monthly instalments. This is intended to reduce 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.

VP Alupo and gender minister Betty Amongi. (Credit: Mpalanyi Ssentongo)

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. 

The  Minister for Gender Labour, and Social Development, Minister Betty Amongi reported that Government under the programme has mobilised women through formal and informal platforms to enable them receive information, training and support to apply for GROW services.

The goal is to support at least 35,000 micro-enterprises and 4000 small enterprises.

She noted that 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).

Financial institutions implementing the Project – GROW Financing Facility (GFF) are Post Bank; Centenary Bank; Finance Trust Bank; Equity Bank and DFCU Bank.

The targeted beneficiaries for the GROW Project are women entrepreneurs with small, medium and large enterprises.