Govt engaging banks to ease loan access for women
Ms Angella Nakafero,Commissioner for Gender and Women Affairs in the Ministry of Gender, Labour and Social Development (left) interacts with some of the women who attended belated Women's Day Celebration in Wakiso on April 5, 2024. PHOTO | JANE NAFULA
What you need to know:
- Ms Nakafero said that since majority of women do not own property such as a land, which can be used as collateral security, the government is exploring options like group lending, where women can secure loans collectively.
The Commissioner for Gender and Women Affairs in the Ministry of Gender, Labour and Social Development, Ms Angella Nakafeero, has said the government is engaging commercial banks to relax requirements for women intending to secure loans.
This, she said, is intended to ease access to capital and strengthen women’s economic muscle.
Ms Nakafeero said that since majority of women do not own property such as a land, which can be used as collateral security, the government is exploring options like group lending, where women can secure loans collectively.
“When they go to the banks to secure loans, they are asked for collateral like land titles yet, most women do not own land. This leaves them is a disadvantaged position where they are not able to participate in the money economy. We are now engaging banks to consider other aspects like, group lending to women in organised groups. Women are good at saving and paying back loans,” she said.
She made the remarks during a belated International Women’s Day celebration organised by Fairtrade Africa, at Wagagai farm in Wakiso District on Friday.
Ms Nakafeero said that although women have a fair representation in the political arena, millions of them are still lagging behind when it comes to economic empowerment.
She also urged employers especially those in the private sector to ensure that all employees earn equal pay for equal amount of work done, in addition to granting women maternity leave and breastfeeding support at workplaces.
She encouraged women to take advantage of the Generation Opportunities and Production for Women Enterprises (GROW) project to boost their businesses.
GROW is a $217m (Shs815b) government of Uganda project supported by the World Bank being implemented by the Ministry of Gender, Labour and Social Development. It seeks to increase access to capital by women entrepreneurs and improving their governance and financial management skills.
Ms Madeline Muga, the Strategy and Impact Director for Fairtrade Africa, also acknowledged that access to credit remains a nightmare for millions of women, due to lack of collateral.
“It is not easy to access credit on good terms. But we encourage women to join organised groups where they can be guaranteed by some of the group members to access capital. We have been also supporting some women with startup capital and encouraging them to add value to their products,” Ms Muga said, encouraging men to support their wives in business other than considering them a threat.
Ms Muga also challenged government to avail business opportunities to women saying in Kenya, 30 percent of government procurement contracts are awarded to women.
