By KT Reporter
A section of local leaders in South Karamoja has asked the government to consider redesigning the process of acquiring GROW loan funds.
The Generating Growth Opportunities and Productivity for Women Enterprises (GROW) project is a government initiative of Uganda, supported by the World Bank with a grant of USD 217 million. It is implemented by the Ministry of Gender, Labour, and Social Development and the Private Sector Foundation Uganda.
In June 2024, the Ministry of Gender extended the GROW project to Karamoja to benefit women entrepreneurs, and the project is expected to end in 2027.
Grow project loans have an interest rate of 10.5 percent per annum for women nationwide. However, women in Karamoja, Bukedi, and Busoga had their interest reduced to 8.5 percent per annum as part of the affirmative action.
Despite the reduction, the guidelines, especially the collateral requirements, remain a barrier for women in Karamoja.
Currently, the GROW loan requires eligible women entrepreneurs to provide at least some basic forms of security as a demonstration of commitment to repay the loan. The collateral requirements vary by bank and depend on the amount to be borrowed. Collateral requirements include registered and unregistered land, movable household, and business assets.
The leaders have stressed that women in Karamoja are struggling to access loans due to bureaucracy and lack of collateral requirements since they are not entitled to family assets. They calling for the government to revise the loan application processes and also consider affirmative action for women in Karamoja.
Joseph Lobot, the LCV Chairperson of the Amudat district, said that the Grow project was well thought out but miscalculated when the proponents thought that all women were equal in terms of entrepreneurship skills, capability, and legalisation of enterprises.
Lobot asked the Ministry of Gender, Labour, and Social Development to consider redesigning the project based on location-specific needs if they want the women in Karamoja to equally benefit.
Lobot said that the project has not benefited anyone from the Amudat district due to the bureaucracy in the registration processes. He stressed that the women in Karamoja are not allowed to own land as a factor of production, and this challenges them in acquiring the land title required as a collateral requirement.
Lobot said that there is a need for affirmative action and to consider factors that surround the cultural norms that restrict women from other practices.
Lobot also observed that the transactions are done through banks, and this challenges women in Amudat district, where there is no single bank.
He added that the women accessing bank services shall have to travel 140 kilometres to Mbale city or 130 kilometres to Moroto district.
Lobot said that there are over 100 women who have shown interest and registered to benefit from the grant, but none of them have received money because of the tight policies.
Paul Lokol, the LC5 Chairperson of the Nabilatuk district, shares the same frustration, stating that the women have put the leaders on the spot over the GROW Money after spending their money on the loan application.
Lokol said that there is a lot of demand for money, and most of the women opened up companies and bank accounts to get money, but all in vain.
Lokol expressed his fears that he may lose his political seat over the GROW money if it is not delivered to the beneficiaries, because he has been at the forefront of mobilising women. He urged the government to downsize the project if there is no money to cater to a large population.
John Paul Kodet, the LCV Chairperson of the Napak district, appealed to the government to allocate each district in Karamoja the money for the women so that they can easily access it.
Kodet said that the women are currently stuck and cannot access any money because of the tight guidelines in place.
He said that it is unfortunate that is money is already finished from the banks when none of the women have received it.
Kodet said that the district has not yet benefited from the project, and they are still drumming up government such that the women can access the loans to improve their household income-URN. Give us feedback on this story through our email: kamwokyatimes@gmail.com
