The Generating Growth Opportunities and Productivity for Women Enterprises (GROW) Project has come under scrutiny following the under-absorption of funds.
According to the Auditor General’s report for the financial year ended 31 June 2024, only Shs18.52 billion out of Shs75.1 billion was spent.
The report further indicates the unspent balance of Shs56.6 billion affected the provision of line of credit to financial participating institutions that were supposed to finance the beneficiaries.
“. Management explained that they have implemented measures such as joint and collaborative efforts with implementing partners, which has significantly enhanced the speed of project implementation and facilitated the efficient utilisation of funds,” the report reads in part.
The concerns came to light as Members of Parliament on the Public Accounts Committee (PAC) - Central Government analysed the performance of the GROW Project.
Hon. Susan Amero (Indep., Amuria District Woman Representative) questioned the distribution mechanism of the funds, which she noted could have impacted on the absorption rate.
“When you go to districts in Northern Uganda, you will find that a lot of money is spent within Lira City and not the other districts. In Alebtong and Amuria districts, the money has not been received. So, where is our share?” Amero asked.
Kalungu West County MP, Hon. Joseph Ssewungu queried the nature of requirements for an individual to access the funds.
“If you compare the number of women who have registered in different areas to get this money, all of it should have been disbursed by now. When negotiating with the World Bank, did you align their requirements with what women can afford?” Ssewungu said.
Hon. Naboth Namanya (FDC, Rubabo County) questioned the allegiance of participating financial institutions to the project, which are supposed to disburse the funds.
“What is important now is to superintend over participating banks. Banks tend to get the appetite of giving their own loans while delaying to release the GROW money. They advise applicants to take their options while telling them that the GROW money is not available,” Namanya said.
According to the GROW Project Coordinator, Dr. Ruth Aisha Kasolo, six banking institutions including Centenary Bank, Finance Trust Bank, Post Bank Uganda, DFCU Bank, Equity Bank Uganda and Stanbic Bank Uganda were allocated shs50.1 billion for the first year of the project.
She added that the World Bank approved a total of Shs120 billion for two years of the GROW project, with the remaining funds expected to be disbursed in the next financial year.
“The under-disbursement was because the project was in its initial stages of implementation. The agreements with the six participating banks were signed towards the end of the year under audit. So we received and paid money to beneficiaries in this current financial year,” Kasolo said.
She added that as at 31 December 2024, a total of 2,175 women in 84 districts and two cities had benefited from the grant, with the trade and commerce sector having the most recipients followed by agriculture and agribusiness and construction and engineering.
She also alluded to a presidential directive that funds of the GROW Project must be equitably distributed, adding that funds for the second year will be prioritised towards districts that have not benefitted yet.
“For regions with zero to five loan beneficiaries, government has engaged the World Bank to onboard microfinance deposit taking institutions that will offer loans that do not require collateral. They will also cover women from refugee hosting communities,” Kasolo added.
The GROW Project implemented by the Ministry of Gender, Labour and Social Development and the Private Sector Foundation aims to support female entrepreneurs to grow their enterprises from micro to small and medium enterprises.
