The Public Accounts Committee (PAC) has raised issues about using a Shs803 billion World Bank grant meant for the Generating Growth Opportunities and Productivity for Women (GROW) Project.
According to the Auditor General’s report, though the grant’s main intention is to help established women-led companies, a good portion is being allotted to mind-set change programmes, infrastructure growth, and competitions, somewhat than instantly aiding the ladies entrepreneurs financially.
The undertaking, which started in January 2023 and can finish in December 2027, targets female-owned enterprises throughout all districts, municipalities, and cities.
However, throughout a gathering with the Ministry of Gender, Labour and Social Development and the Private Sector Foundation on Monday, June 17, 2024, it was revealed that solely Shs133 billion was allotted on to ladies, with some funds given out as loans at a ten % rate of interest. Committee members criticized this, noting that the federal government was charging Ugandans curiosity on cash acquired as a grant.
Committee Chairperson, Hon. Muwanga Kivumbi, expressed concern over the distribution of expenditures, revealing that solely Shs33 billion of the full grant is allotted to direct monetary help for women-led enterprises, whereas the bulk is utilized by the Ministry of Gender and the Private Sector Foundation for secondary actions. “Out of the US$217 million, solely US$35 million is obtainable for ladies to borrow, which is unacceptable,” he stated.
Alex Asiimwe, the Commissioner for Labour, Industrial Relations and Productivity on the Gender Ministry, acknowledged that the grants would goal sectors the place ladies are predominantly engaged and have potential for scale and job creation. These sectors embody agribusiness, manufacturing, and hospitality, with a concentrate on meals, drinks, crafts, and decorations.
Aggrey David Kibenge, the Permanent Secretary within the Ministry of Gender, knowledgeable the committee that the grant basis required a holistic strategy, regardless of its concentrate on ladies already in enterprise. “The undertaking is structured to deal with extra than simply credit score points as a result of offering credit score alone may not assist if ladies can’t entry it via banks,” he stated.
Hon. Fredrick Angura, MP for Tororo South County, referred to as for a re-evaluation of the grant’s allocation to make sure that a bigger portion instantly advantages the ladies entrepreneurs.
