The Generating Growth Opportunities and Productivity for Women Enterprises (GROW) Project in Uganda has recently faced criticism due to the under-absorption of funds. The Auditor General’s report for the financial year ending on June 31, 2024, revealed that only Shs18.52 billion out of the allocated Shs75.1 billion was spent. This underutilization of funds, amounting to Shs56.6 billion, has hindered the provision of line of credit to financial institutions that were supposed to finance the project’s beneficiaries.
Members of Parliament on the Public Accounts Committee (PAC) – Central Government raised concerns about the distribution of funds, questioning why certain districts had not received their share of the money. Hon. Susan Amero from Amuria District highlighted the unequal distribution of funds within Northern Uganda, emphasizing the need for a fair allocation process. Similarly, Hon. Joseph Ssewungu from Kalungu West County raised questions about the eligibility criteria for accessing the funds, suggesting that the requirements may be too stringent for potential beneficiaries.
The GROW Project Coordinator, Dr. Ruth Aisha Kasolo, addressed these concerns by explaining that the under-disbursement was a result of the project being in its early stages of implementation. She mentioned that agreements with participating banks were signed late in the audit year, leading to delays in fund disbursement. Dr. Kasolo also revealed that a total of 2,175 women in 84 districts and two cities had benefited from the grant by the end of 2024, with various sectors such as trade, agriculture, and construction receiving support.
In response to the criticisms, Dr. Kasolo assured that the remaining funds would be disbursed in the upcoming financial year, with a focus on prioritizing districts that have not yet benefited from the project. She also mentioned a presidential directive to ensure equitable distribution of funds, with plans to involve microfinance institutions that offer collateral-free loans for women in underserved regions, including those hosting refugee communities.
The GROW Project, implemented by the Ministry of Gender, Labour, and Social Development in partnership with the Private Sector Foundation, aims to empower female entrepreneurs to scale their businesses from micro to small and medium enterprises. Through targeted support and financial assistance, the project seeks to boost women’s economic participation and drive inclusive growth in Uganda.
