The Public Accounts Committee (PAC) has expressed concerns about the use of an 803 billion Ugandan shilling World Bank grant intended for the Generating Growth Opportunities and Productivity for Women (GROW) Project.
According to a report from the Auditor General, the grant was primarily meant to support established women-led businesses. However, a large portion of the money is being used for mindset change programs, infrastructure development, and competitions instead of directly benefiting women entrepreneurs with financial aid.
The GROW Project started in January 2023 and is set to end in December 2027. It aims to support female-owned enterprises across all districts, municipalities, and cities in Uganda.
During a meeting with the PAC on Monday, 17 June 2024, the Ministry of Gender, Labour and Social Development and the Private Sector Foundation revealed that only 133 billion shillings would go directly to women. Some of the funds would be given out as loans with an interest rate of 10 percent. Committee members pointed out that even though 10 percent seems small, it is still charging Ugandans interest on money that was received as a grant.
Committee Chairperson, Hon. Muwanga Kivumbi, expressed concern about the distribution of the grant. He highlighted that only 133 billion shillings out of the total grant was allocated to direct financial support for women-led enterprises. The rest of the funds were being used by the Ministry of Gender and the Private Sector Foundation, the project’s implementing partners, for other activities.
“In simple terms, out of the US$217 million, the only money available for women to borrow from is US$35 million. This is not acceptable,” Muwanga Kivumbi said.
Alex Asiimwe, the Commissioner for Labour, Industrial Relations, and Productivity at the Gender Ministry, stated that the grants would target sectors where women are predominantly engaged and have potential for growth and job creation. He mentioned that these sectors include agribusiness, manufacturing, and hospitality, especially focusing on food and beverages, as well as crafts and decorations.
Aggrey David Kibenge, the Permanent Secretary in the Ministry of Gender, told the committee that the grant’s foundation required a comprehensive approach even though it focused on women already in business. “The project is structured in a manner that does not address only the issue of credit because we could give women credit and they might still struggle to access that credit in a bank,” he explained.
Tororo South County Member of Parliament, Hon. Fredrick Angura, called for a re-evaluation of the grant’s allocation to ensure that a more significant portion directly reaches the women entrepreneurs.
