By Ben Musanje
Women entrepreneurs, innovators and creative artists across Uganda are set to compete for a share of Shs70 billion in non-refundable grants under the government’s flagship Generating Growth Opportunities and Productivity for Women Enterprises (GROW) Project, as efforts intensify to accelerate enterprise development beyond traditional lending.
The grants, which target women and youth engaged in manufacturing, innovation and the creative economy, will be awarded through national competitions involving innovators, poets, creative artists and entrepreneurs with commercially viable business ideas.
Speaking during the launch of the disbursement of GROW Project funds through Kyadondo CBS PEWOSA SACCO in Butambala District, the Project Coordinator at the Ministry of Gender, Labour and Social Development, John Ssengendo, said the initiative was intended to unlock innovation and create employment by financing promising ideas capable of transforming communities.
He explained that successful applicants would receive grants ranging from Shs3.5 million to Shs110 million, depending on the quality, innovation and scalability of their projects. Unlike conventional loans, the grants will not be repaid, although beneficiaries will be closely monitored to ensure the funds are invested in productive ventures that create jobs and stimulate economic growth.
Ssengendo said the innovation fund forms part of the wider USD217 million (approximately Shs800 billion) World Bank-funded GROW Project, which is being implemented by the Ministry of Gender, Labour and Social Development in partnership with the Private Sector Foundation Uganda (PSFU). The project seeks to help women-owned enterprises transition from micro businesses into competitive small and medium enterprises through access to finance, business training, market linkages and mentorship.
He noted that Uganda continues to register one of the highest rates of entrepreneurship in Africa but also experiences an equally high business failure rate. According to him, many enterprises collapse because entrepreneurs lack financial management skills, proper planning and access to business development services.
To address these challenges, the project is mobilising women entrepreneurs in every district and equipping them with financial literacy, record-keeping and business management skills before connecting them to affordable financing and market opportunities.
Ssengendo added that the programme also offers work-placement opportunities, where women entrepreneurs are attached to established businesses to gain practical industry experience. Restaurant owners, for example, can be placed in leading hotels to acquire modern hospitality and business management skills before applying them in their own enterprises.
Beyond the innovation fund, the government has earmarked Shs97 billion for infrastructure grants to support organisations engaged in value addition. Eligible companies and cooperatives will compete for grants ranging between Shs20 million and Shs1.6 billion, depending on the quality and impact of their proposals.
He explained that the infrastructure grants are intended to strengthen agro-processing, manufacturing and other value-addition industries capable of increasing production, creating employment and expanding markets for locally produced goods.
Ssengendo noted that some community groups had deliberately opted to apply for smaller grants, such as Shs40 million, to establish manageable businesses with the potential for gradual expansion.
He further said the GROW Project is not exclusively designed for refugees but also benefits Ugandans living in refugee-hosting districts. By supporting joint enterprises involving both host communities and refugees, the government hopes to promote peaceful coexistence while ensuring that development opportunities are shared equitably.
According to Ssengendo, the government is also concerned that nearly 80 percent of the National Social Security Fund (NSSF) contributions originate from the Kampala Metropolitan Area, reflecting limited formal business growth in the rest of the country. He said expanding women-led enterprises across all districts would help widen Uganda’s economic base, increase formal employment and boost household incomes.
The GROW Project, which commenced in January 2023 and will run until December 2027, targets more than 60,000 women-owned enterprises, including 3,000 refugee-owned businesses, while directly benefiting over 280,000 women entrepreneurs and employees. It is also expected to indirectly improve the livelihoods of approximately 1.6 million Ugandans.
The programme complements other interventions under the GROW Project, including affordable loans disbursed through commercial banks, microfinance institutions and SACCOs, business advisory services, entrepreneurship training and efforts to link women entrepreneurs to certification bodies such as the Uganda National Bureau of Standards (UNBS), enabling them to access regional and international markets. (For comments on this story, get back to us on 0705579994 [WhatsApp line], 0779411734 & 041 4674611 or email us at mulengeranews@gmail.com).
