The Minister of State for Finance, Planning and Economic Development (General Duties), Hon. Henry Musasizi, has clarified that the funds under the women’s project, Generating Growth Opportunities and Productivity for Women Enterprises (GROW), are loans, not grants.
Musasizi made this clarification in response to concerns raised by Gulu City Woman MP, Hon. Betty Aol, during a parliamentary session on Thursday, 18 September 2024.
Aol had highlighted confusion surrounding the nature of the GROW project funds, with some referring to them as grants while others said they were loans.
She expressed frustration, noting that women who had been trained in preparation for the funds were now facing challenges during implementation. “The banks are asking for land titles. Where are women going to get land titles from?” Aol asked.
In response, Musasizi explained that the GROW project funds range from Shs4 million to Shs200 million, with an annual interest rate of 10 to 10.5 percent.
The interest rate depends on the commercial bank providing the loan, and applicants are required to meet several conditions, including opening an account with the lending bank, providing collateral, a business license, a loan budget, business records, a recommendation from the Local Council 1, and guarantors.
Musasizi further explained that the project is designed for women who have existing businesses and have benefited from previous wealth creation initiatives such as Emyooga, the Parish Development Model, and the Uganda Women Entrepreneurship Programme.
“It is aimed at supporting women who have graduated from these other projects,” he said
He further assured the House that the funds are not meant for everyone. He promised to provide a more detailed report on the project if needed.
The Shs180 billion GROW project is being implemented by the Ministry of Gender, Labour and Social Development, in collaboration with the Ministry of Finance, under the Private Sector Foundation.
Deputy Speaker Thomas Tayebwa instructed the Minister of Finance to present a detailed report on the project’s implementation by Wednesday, 25 September 2024.
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