Prime
World Bank pushes for sustainable Shs806b project
Ms Betty Amongi
What you need to know:
- A grant worth Shs806b ($217m) targets 5,000 women entrepreneurs to support them grow their businesses
The World Bank has launched a grant worth Shs806b ($217m) targeting 5,000 women entrepreneurs across the country to support them grow their businesses, especially those in refugee-hosting districts.
A portion of the grant - $50m (Shs185b) - is a loan where six participating banks will offer credit of between Sh4m and Sh200m to women-led enterprises.
Ms Rosemary Mukami Kariuki, the World Bank country manager, said the money will be availed through a revolving fund to ensure that different women-led businesses are supported.
A study by World Bank shows Uganda has the highest proportion of women-owned businesses in Africa, but remain at micro-level and struggle to grow.
The grant targets to reach 1,000 women-led businesses, while the loan portion - only accessed by businesses that are 51 percent women-owned - will carry an interest of 10.5 percent and a repayment period of 24 months.
Beneficiaries who repay their loans within set timelines will receive a grant of up to 5 percent of the loan principal obtained from participating banks including Centenary, Equity, Finance Trust, Post Bank, and Stanbic.
Speaking at the launch of the Grow Project in Kampala, Vice President Jessica Alupo, said while this only targets women entrepreneurs seeking financing of between Sh4m and Sh200m, another fund - Invite Programme - where women businesses can access up to Shs1b, will be launched soon.
Businesses seeking to benefit from the fund must have their products certified by UNBS.
Gender Minister Betty Amongi, said they are in talks with agencies such as UNBS, Uganda Registration Services Bureau and Uganda Export Promotion Board, among others, to ease products certification and registration of women-led businesses.
She also noted that a collaboration between Uganda Industrial Research Institute and Diary Development Authority to ease milk processing, was in the final stages.
