Uganda: Members of Parliament examine performance of the Generating Growth Opportunities and Productivity for Women Enterprises (GROW) project
Growth opportunities and productivity of women’s business (GRAW) projects are under scrutiny after under-funding.
According to the report of the Comptroller General for the fiscal year ended June 31, 2024, there are only 18.52 billion shillings out of 75.1 billion shillings.
The report further shows that a balance of Sh56.6 billion affects the credit lines provided by financial participating institutions that should provide funds to beneficiaries.
“Management explained that they have implemented measures such as joint and collaborative efforts with implementation partners, which greatly improves the speed of project implementation and promotes effective use of funds,” the report reads.
These issues attracted attention when members of the Public Accounts Committee (PAC) analyzed the performance of growth projects.
honor. Susan Amero (Indep., representative of women in Amuria region) questioned the allocation mechanism of funds, which she noted could affect the absorption rate.
“When you go to the northern Uganda area, you will find a lot of money in the city of Lira and not other areas. In the Alben and Amuria areas, you have not received this money yet. So, where is our share?” Amero asked.
Kalungu West County MP, Hon. Joseph Ssewengu asked for individuals to obtain funding.
“If you compare the number of women who are registered in different regions to get that money, then all of this should have been paid. When negotiating with the World Bank, do you align their demands with what women can afford?” Ssewungu said.
honor. Naboth Namanya (FDC, Rubabo County) questioned the loyalty of financial institutions involved in the project, which could have paid for the funds.
“It is important now to monitor participating banks. Banks tend to get their own appetite for loans while delaying the release of growth funds. They advise applicants to tell them to grow funds while they are not available,” Namanya said.
According to Grow Project Coordinator, Dr Ruth Aisha Kasolo, six banks, including the six banks, Financial Trust Bank, Postal Bank Uganda, DFCU Bank, Equity Bank Uganda and Stanbic Bank Uganda, said the project allocated Sh50.1 billion for the first year of the project.
She added that the World Bank approved a total of 10 billion shillings within two years of the project, with the rest expected to be paid in the next fiscal year.
“The payment is insufficient because the project is in the initial stages of implementation. The agreement with six participating banks was signed under the audit of six participating banks. As a result, we received and paid the money to the beneficiaries during the fiscal year.”
She added that as of December 31, 2024, there were 2,175 women in 84 regions, and two cities benefited from the grant, with the trade and commercial sectors having the largest number of recipients, followed by agriculture, agribusiness, construction and engineering.
She also hinted at the presidential directive that funds for growth projects must be distributed fairly, adding that funding for the second year will prioritize areas that have not yet benefited.
“For regions with zero to five loan beneficiaries, the government has engaged to the World Bank to provide institutions with loans that do not require collateral. They will also cover women from refugee custody communities.”
The Gender, Labor and Social Development Department and the Private Sector Foundation have implemented a growth program to support female entrepreneurs in growing their businesses from micro and small and medium-sized enterprises.
Issued by Apo Group on behalf of the Parliament of the Republic of Uganda.
