Legislators on the Public Accounts Committee (PAC) are calling for a meeting with officials from the World Bank and Uganda’s Ministry of Finance to address concerns over a UGX 806.86 billion (US$217 million) women empowerment project. The project, aimed at supporting women entrepreneurs through the Generating Growth Opportunities and Productivity for Women Enterprises (GROW) initiative, has faced criticism for allocating a significant portion of funds to administration rather than directly aiding women entrepreneurs.
PAC Chairperson Muwanga Kivumbi, also the Butambala County MP, expressed the need for this meeting after MPs raised concerns about the distribution of funds. “We need to scrutinize the management of these funds to ensure the money reaches the intended beneficiaries,” said Kivumbi. “This should have been addressed in the sectoral committees, but we now need a comprehensive meeting including the World Bank, Parliament, and relevant committees to resolve these issues.”
The GROW project, partly managed by the Private Sector Foundation Uganda (PSFU), has allocated only US$35 million (UGX 129.17 billion) for direct lending to women, out of the US$89 million (UGX 328.45 billion) earmarked for the initiative. The remaining funds are primarily directed towards administrative costs, training, and infrastructure, with loans carrying a 10% interest rate. MPs questioned why loans from a grant-funded project should bear interest and why the selection process for recipients involves competitive criteria.
Kivumbi emphasized the committee’s focus on ensuring more funds are directly available to women entrepreneurs, criticizing the heavy administrative expenses. “Our main concern is that only US$35 million is allocated for direct loans to women, while the rest is consumed by administrative and training costs,” he said. “We need to reallocate more funds towards lending to women rather than these elite processes.”
Aggrey David Kibenge, Permanent Secretary of the Ministry of Gender, Labour, and Social Development, explained that the project targets established women entrepreneurs in need of affordable capital. “GROW is designed to support women already in business who face challenges in accessing credit on favorable terms,” Kibenge stated. “The project implementation began in January 2024 and will run until December 31, 2027.”
However, Herbert Tayebwa, the Kashongi County MP and Sarah Opendi, the Tororo District Woman Representative raised doubts about the project’s design and its similarity to previous unsuccessful initiatives. They questioned the sustainability of constructing new infrastructure and the efficacy of targeting women already established in business. “We need to ensure this project doesn’t repeat past mistakes of providing funds without achieving significant impact,” Tayebwa remarked.
The Ministry of Gender’s allocation includes US$42 million (UGX 156.17 billion) for training, US$49 million (UGX 182.19 billion) for infrastructure, and US$35 million (UGX 130.14 billion) for a credit facility. Commissioner Alex Asiimwe highlighted plans to build a modern women entrepreneurship training center. “This facility will provide space and support for women entrepreneurs to innovate and grow their businesses,” Asiimwe explained.
Ibanda North Constituency MP Xavier Kyooma cautioned that the current project structure might reduce women’s productivity by making them compete for funds. “Women may end up spending more time chasing funds rather than focusing on their businesses,” he warned. Kyooma also questioned the rationale behind charging interest on the loans when the project is not a revolving fund.
Meanwhile, Fredrick Angura, the Tororo South MP suggested revising the project components to eliminate duplication of efforts between the Ministry of Gender and the Ministry of Trade. “We need to ensure there is no overlap and that funds are used efficiently to support women,” Angura noted.
Kivumbi also warned the media against negative coverage that could jeopardize the project. “Negative publicity can affect funding. We must handle this matter sensitively to avoid jeopardizing the project,” he cautioned.
The PAC aims to ensure that the GROW project fulfills its goal of empowering women entrepreneurs by addressing the identified loopholes and ensuring efficient use of funds.
Source: Parliament Watch