The Ugandan government has announced plans to provide grants of up to Shs107.07 million to women entrepreneurs who were unable to secure financing under the GROW Loan scheme. The new funding window, known as the Business Plan Competition Grants, aims to support eligible women-owned micro and small enterprises that missed out on loans due to financial constraints or stringent banking requirements. This initiative is part of the Generating Growth Opportunities and Productivity for Women Enterprises (GROW) Project.
The government plans to support at least 2,626 women-owned enterprises nationwide, including at least 767 enterprises in refugee-hosting districts. The grants will range from Shs3.5 million to Shs107.07 million, providing women entrepreneurs with an alternative route to capital without the burden of repaying a loan. The rollout preparations gained momentum with a regional orientation meeting in Rukungiri Municipality, bringing together local government leaders from the Ankole and Kigezi sub-regions.
The meeting was led by Minister of Gender, Labour and Social Development Lt. Gen. Henry Tumukunde, and officially opened by Minister of State for Youth and Children Affairs Mercy Faith Lakisa. Lakisa stated that the new grant programme was designed to address gaps identified during the implementation of the GROW Loan component, where some viable women-led businesses could not secure financing. The grants will provide direct financial support to eligible women entrepreneurs seeking to expand their businesses.
The proposed funding structure will see micro enterprises with up to four employees and sales or assets of up to Shs10 million qualify for grants ranging from Shs3.5 million to Shs35.69 million. Small enterprises employing between five and 49 people, with assets ranging from Shs10 million to Shs100 million, will qualify for grants between Shs39.259 million and Shs107.07 million. The highest funding levels will prioritise high-impact enterprises operating in male-dominated and non-traditional sectors.
Priority will be given to businesses with the potential to generate economic impact through innovation, technology, environmental sustainability, and services that respond to emerging community needs. These include ventures in solar energy, irrigation, and waste management, as well as commercial agribusiness processing, health technology, and early childcare facilities. The focus on these sectors aims to encourage women entrepreneurs to move beyond small-scale trading into enterprises that can improve productivity and create jobs.
Local leaders were tasked with mobilisation and identification of eligible applicants, raising awareness about the new funding opportunity, and supporting women entrepreneurs in understanding the requirements of the competition. The GROW Project is a government initiative supported by the World Bank and implemented by the Ministry of Gender, Labour and Social Development in partnership with the Private Sector Foundation Uganda.
The introduction of the Business Plan Competition Grants adds another financing option to the project, particularly for women whose businesses could not meet the requirements for loan financing. For the targeted entrepreneurs, the programme offers an opportunity to seek capital for expansion without taking on a repayable loan, although access will depend on eligibility and success in the competitive selection process.
Key points
- The Ugandan government to offer grants up to Shs107 million for women entrepreneurs who missed out on GROW loans.
- The grants will support eligible women-owned micro and small enterprises that missed out on loans due to financial constraints or stringent banking requirements.
- Priority will be given to businesses with the potential to generate economic impact through innovation, technology, environmental sustainability, and services that respond to emerging community needs.
