Members of Parliament have accused banks of obstructing the Generating Opportunities and Productivity for Women Entrepreneurs (GROW) project, a government initiative to support women-led enterprises. This came to light after the 2nd GROW Women Entrepreneurs Forum, attended by project stakeholders, beneficiaries, and banking representatives.
Sarah Opendi, the Woman MP for Tororo district, shared frustrations with banks prioritizing their loan products over GROW funds. She narrated the experience of her sister, a school proprietor, who was repeatedly denied access to the GROW fund by Post Bank and Centenary Bank.
Jane Avur of Pakwach district highlighted inconsistencies in Post Bank’s messaging between its headquarters and rural branches. Meanwhile, Santa Okot accused Centenary Bank of charging an unjustified 10,000 shillings for account opening and colluding with surveyors to extort money for collateral assessments.
Aisha Kabanda from Butambala district advocated for a group loaning system, similar to existing bank practices, to aid women lacking traditional collateral. She emphasized the importance of transparency about loan terms, particularly the effective interest rate of 20 percent over two years.
Bank officials urged patience, as the program is still in its early stages, and reassured MPs that their operations are audited by KPMG. They claimed that accusations of favoring their products were unfounded.
The Minister for Gender, Labor, and Social Development, Betty Amongi, acknowledged the MPs’ concerns. She announced plans to involve Savings and Credit Cooperative Organizations (SACCOs) alongside banks to extend reach. Additionally, a sub-regional sharing agenda is being implemented to ensure nationwide fund accessibility. Communication with banks is ongoing to streamline this process within two weeks.
Amongi also mentioned that beyond loans, the GROW project will introduce a skilling program. Women uninterested in loans can access training tailored to their fields of interest.
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