Government Unveils Grants of Up to Shs107 Million for Women Entrepreneurs Locked Out of GROW Loans

Women entrepreneurs who failed to secure financing under the government’s GROW Loan scheme could soon get another opportunity to expand their businesses, with the government preparing to roll out non-repayable grants of up to Shs107.07 million.

The new funding window, known as the Business Plan Competition Grants, is being introduced under the Generating Growth Opportunities and Productivity for Women Enterprises (GROW) Project to support eligible women-owned micro and small enterprises that missed out on loans because of financial constraints, stringent banking requirements or credit limitations.

Government plans to support at least 2,626 women-owned enterprises nationwide, including at least 767 enterprises in refugee-hosting districts, through grants ranging from Shs3.5 million to Shs107.07 million.

The initiative is intended to widen access to business financing and give women entrepreneurs an alternative route to capital without the burden of repaying a loan.

The rollout preparations gained momentum on Thursday during a regional orientation meeting at Hotel Riverside in Rukungiri Municipality, bringing together local government leaders from the Ankole and Kigezi sub-regions.

The meeting was part of a nationwide mobilisation and orientation exercise aimed at preparing local leaders to guide eligible entrepreneurs ahead of the grants’ launch. Other regions represented in the wider exercise included Soroti, Gulu and Mbale.

The Rukungiri session was led by Minister of Gender, Labour and Social Development Lt. Gen. Henry Tumukunde, with the meeting officially opened by Minister of State for Youth and Children Affairs Mercy Faith Lakisa.

Lakisa said the new grant programme was designed to address gaps identified during the implementation of the GROW Loan component, under which some viable women-led businesses could not secure financing.

“We noted with concern that despite the widespread rollout of the GROW Loan across the country, a significant number of viable women entrepreneurs were unable to access or secure the loan due to varying financial constraints, stringent banking requirements, or credit limitations,” Lakisa said.

She said the grants would provide direct financial support to eligible women entrepreneurs seeking to expand their businesses, invest in equipment, improve production and strengthen their operations.

“We must spread project benefits widely so that every eligible woman entrepreneur gets a fair chance to scale up,” she said.

Grants to target micro and small enterprises

Under the proposed funding structure, micro enterprises with up to four employees and sales or assets of up to Shs10 million will qualify for grants ranging from Shs3.5 million to Shs35.69 million.

The funds are intended to support business expansion, formalisation, the acquisition of production equipment and working capital.

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, according to the programme details presented at the meeting.

The grants will be awarded through a competitive business-plan process, placing emphasis on proposals demonstrating the potential to expand enterprises and strengthen their economic contribution.

Innovative and green businesses prioritised

Lakisa said priority would be given to businesses with the potential to generate economic impact through innovation, technology, environmental sustainability and services that respond to emerging community needs.

Priority areas include creative industries, Science, Technology, Engineering and Mathematics (STEM)-driven innovation, green enterprises and climate-resilience businesses.

These include ventures in solar energy, irrigation and waste management, as well as commercial agribusiness processing, health technology and early childcare facilities serving children aged zero to three years.

The focus on these sectors is intended to encourage women entrepreneurs to move beyond small-scale trading into enterprises that can improve productivity, create jobs and respond to changing market demands.

Local leaders tasked with mobilisation

The Rukungiri meeting brought together Resident District Commissioners, Resident City Commissioners, district chairpersons, mayors, chief administrative officers, town clerks, commercial officers, chairpersons of women entrepreneurs’ platforms and GROW focal persons.

Their involvement is expected to help identify and mobilise eligible applicants, raise awareness about the new funding opportunity and support women entrepreneurs in understanding the requirements of the competition.

Minister of State for Labour, Employment and Industrial Relations Simon Mulongo also attended the meeting.

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. It aims to improve women entrepreneurs’ access to services and financing that can help their businesses grow from micro to small and medium-sized enterprises.

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.