MPs question allocation of Shs803bn World Bank grant for women’s project

According to the Auditor General's report, although the grant was primarily meant to support established women-led businesses, a significant amount of the funds is being redirected to mindset change programmes, infrastructure development, and competitions rather than directly aiding women entrepreneurs with financial support.

The project, which began in January 2023 and is set to conclude in December 2027, aims to support female-owned enterprises across all districts, municipalities, and cities.

However, during a committee session on Monday, June 17, with the Ministry of Gender, Labour and Social Development, and the Private Sector Foundation, it was revealed that only Shs133 billion was directly allocated to women, with some funds being distributed as loans at a 10 per cent interest rate.

Committee members argued that despite the seemingly low interest rate, it was inappropriate for the government to charge Ugandans interest on money received as a grant.

Muwanga Kivumbi Pulse Live Uganda

Committee Chairperson, Muwanga Kivumbi, highlighted the disproportionate expenditure distribution, noting that only Shs133 billion of the total grant was directed towards direct financial support for women-led enterprises, while the remainder was used by the Ministry of Gender and the Private Sector Foundation for secondary activities.

"In essence, out of the US$217 million, only US$35 million is available for women to borrow, which is unacceptable," said Muwanga Kivumbi.

Alex Asiimwe, the Commissioner for Labour, Industrial Relations and Productivity at the Gender Ministry, stated that the grants would target sectors where women are predominantly active and which have potential for growth and job creation.

These sectors include agribusiness, manufacturing, and hospitality, with a particular focus on foods, beverages, crafts, and decorations.

Aggrey David Kibenge, the Permanent Secretary in the Ministry of Gender, informed the committee that the grant's structure necessitated a holistic approach, despite its focus on women already in business.

"The project is designed not only to provide credit because simply giving women credit could result in their inability to access it in banks," he explained.

Fredrick Angura, MP for Tororo South County, called for a reassessment of the grant's allocation to ensure that a larger portion directly benefits women entrepreneurs.

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