Business 25 June 2026 Daily Monitor (Uganda)
Busoga women struggle to access GROW loans due to collateral and distance barriers
Despite a high demand for affordable financing, many women entrepreneurs in the Busoga region are being prevented from accessing loans from the GROW project primarily due to stringent collateral requirements and the physical distance to financial institutions. With the project set to conclude in December 2027, effective strategies are needed to overcome these obstacles. Source: https://www.monitor.co.ug/uganda/news/national/collateral-distance-block-busoga-women-from-grow-project-loans-5509532
The Global Response to Economic Vulnerability (GROW) project, a significant initiative aimed at empowering women entrepreneurs with affordable financing, is facing challenges in the Busoga region. Despite 18 months remaining before its conclusion in December 2027, a substantial number of women are unable to secure loans, largely due to requirements for collateral and geographical barriers to accessing banks.
In Mayuge District, for instance, only seven women have successfully accessed GROW loans since the project’s inception. This low uptake is attributed to the requirement for land as collateral, which most women in the area do not possess. Furthermore, some married women are hesitant to apply, fearing their husbands might control the funds or even not wanting them to know about the loan applications.
The issue of distance to banking services is particularly acute in Luuka and Namutumba districts. Women often need to travel to Iganga for banking, incurring significant transport costs and time, which discourages them from pursuing loan applications. The lack of land titles and the need to obtain consent from spouses or relatives further complicate the process.
Programme implementers, however, maintain that funds are available and that informal businesses can qualify if they are verifiable. While banks cite a lack of formal ownership documents as a primary challenge in assessing business ownership, some women beneficiaries have reported positive outcomes, using loans to expand their ventures.
Women leaders are advocating for the inclusion of SACCOs and microfinance institutions in the project to bring financial services closer to the beneficiaries. While the GROW project offers loans with an annual interest rate of up to 10%, along with training and grants, awareness and accessibility remain critical factors for its success in the region.
The World Bank-funded GROW Project is designed to run for five years and concludes in December 2027. For more details on the project’s objectives and implementation, refer to the Daily Monitor.