Published on 06/07/2024
After meetings between Parliament and top government officials, Ministry of Finance has committed to renegotiating the US$217 million (UGX 797.689 billion) Grant from the World Bank. The goal is to increase the share of funds dedicated to women entrepreneurs beyond the current allocation of US$35 million (UGX 128.659 billion).
This breakthrough was announced by Henry Musasizi, Minister of State for Finance after an intense five-hour session with the Public Accounts Committee. The discussions also involved representatives from the Ministry of Gender and the Private Sector Foundation Uganda, the two organizations responsible for managing the fund. Numerous MPs had voiced strong objections to the initial allocation for women entrepreneurs, arguing that too much of the grant was being consumed by administrative costs.

“We take note of your concerns that you want the intended beneficiaries to receive more substantial benefits. Any reasonable manager would resonate with you on this. We have a mechanism to engage with the World Bank, and I commit that we will address your concerns. It is possible to reallocate funds within a component. Let us undertake as Finance to engage with the Bank to make your intentions a reality,” Minister Musasizi stated.
READ ASLO: Uganda’s GROW Project Under Scrutiny As Parliament Calls For Meeting With World Bank

Esther Anyakun, Minister of State for Labour, echoed these sentiments: “We appreciate your concern. The Ministry of Gender will discuss these issues with the government and the Bank. Our purpose is to ensure that Ugandans benefit from this project.”
Earlier, David Kibenge, Permanent Secretary of the Ministry of Gender, had claimed that US$90 million (UGX330,839 billion) was set aside for women. However, the government later clarified that the actual amount directly available for women entrepreneurs is US$70 million (UGX 257,319 billion), targeting 40,000 women entrepreneurs.
This prompted MPs to call for further revisions. Muwanga Kivumbi (Butambala County) argued that even if the allocation were UGX257 billion, it would amount to just US$1500 per woman, insufficient for established entrepreneurs seeking affordable capital.
“You are going to build markets, but the women you are targeting already have workplaces and employ people. They don’t need to be lumped in a market. This is a good project, but as currently run, it may not achieve its intended purpose. US$70 million means each woman entrepreneur would receive less than US$1500,” Kivumbi said.
He continued, “Which should be the bigger component? The amount they borrow from or the funds facilitating these processes? You register them, but by the time they come to borrow, there is no money. What’s the point?”
During the meeting, Kivumbi, the Chairperson of Parliament’s Public Accounts Committee, cautioned the media against negative reporting on the GROW project, warning it could lead the World Bank to recall the funds.
“I caution the media to act patriotically. We don’t want unnecessary negative noise about the World Bank money, especially grants, which can be easily withdrawn. However, this doesn’t mean we shouldn’t highlight areas where the project may not achieve its intended purpose,” Kivumbi said.
Kivumbi also revealed that although the World Bank had been invited to the meeting, the invitation was rescinded due to diplomatic immunity, which bars the Bank from appearing before parliamentary committees.
“We initially invited the World Bank, but due to protocol and immunity issues, they cannot appear before this Committee. We have settled this with the Clerk and the leadership of Parliament, including the Speaker,” Kivumbi added.
The Generating Growth Opportunities and Productivity for Women Enterprises (GROW) project is a World Bank-funded initiative designed to support women entrepreneurs in transitioning from micro to small, and from small to medium enterprises. This aligns with the Government’s National Development Plan III (NDP III) goal of promoting women’s economic empowerment, leadership, and participation in decision-making through investment in entrepreneurship programs and business centres.
The GROW project aims to address the structural barriers that hinder the growth of women-owned businesses. These barriers include financial inclusion, access to business development services, infrastructure improvements, and the promotion of women’s effective participation in the development process.