By David Muwonge
Africa-Press – Uganda. As the world folds inward, grappling with post-COVID recovery, economic shocks, and rising geopolitical tensions, Uganda remains dedicated to its humanitarian efforts.
The country continues to open its arms to welcome refugees with compassion, promising shared growth, even as other nations tighten their border controls.
Despite the civil conflicts and climate disasters in the Great Lakes region, Uganda hosts Africa’s largest refugee population of approximately 1.8 million individuals. These refugees arrive from countries such as the Democratic Republic of Congo, Eritrea, Ethiopia, Rwanda, Somalia, South Sudan, and Sudan – seeking refuge in safe havens like Nakivale Settlement in western Uganda, now home to over 171,000 persons.
This modest generosity further rubber stamps Uganda’s well-earned signature, “The Pearl of Africa.” Christened by Sir Winston Churchill, who admired its landscape and biodiversity, however, Uganda’s true beauty may lie deeper, in the warmth and hospitality of its people.
A sentiment echoed by many visitors, who not only speak highly of the country’s natural habitat, but also the genuine welcome and hospitality extended to new arrivals.
Uganda’s refugee policy not only provides shelter but opens the door of opportunity. In collaboration with international and local organizations, the Government of Uganda has supported refugees through access to financial services, and literacy skills development – a true sense of ubuntu or shared humanity.
One example is the Generating Growth Opportunities and Productivity for Women Enterprises (GROW) – a Government of Uganda project, funded by the World Bank and implemented by the Ministry of Gender, Labour and Social Development in collaboration with the Private Sector Foundation Uganda (PSFU).
Uganda boasts the highest rate of women’s business ownership in Africa. According to the 2020 Master Card Global Index of Women Entrepreneurs, women own nearly 40% of all businesses in the country. However, 80–94 per cent of all women-owned enterprises in Uganda are microenterprises with the majority never growing past the micro level.
The GROW Project seeks to change that narrative by increasing access to entrepreneurial services that enable female entrepreneurs to grow their enterprises from micro to small and small to medium in targeted locations, including the Refugee Host Districts (RHD).
As of December 2024, GROW had issued loans to 64 women entrepreneurs across five refugee-hosting districts: Kamwenge (51), Isingiro (6), Kiryandongo (5), Koboko (1), and Adjumani (1). These loans ranging from shs 4 million to shs200 million and are offered through participating banks, including Post Bank, Centenary Bank, Finance Trust Bank, dfcu Bank, Stanbic Bank, and Equity Bank.
The loans carry an interest rate of no more than 10 per cent annually. Borrowers are required to repay these loans within 24 months.
According to Dr. Ruth Aisha Kasolo, the GROW Project Coordinator at PSFU, the number of loans dispatched, 64, has since increased, with updated figures soon to be published.
She emphasized that the funds have enabled women to expand existing businesses and launch new ones. This access to formal credit has enabled the women to hire new employees, creating a trickle-down effect within their communities.
Aisha Kasolo revealed that the GROW Project roll-out has not been a smooth sailing one, and they have encountered some challenges, particularly within refugee communities.
She explained that uptake among refugee communities has been low, largely “because the banks don’t have particular products suitable for refugees.” This brings to light a systematic gap in financial services, especially for the marginalized women.
Research suggests that women’s access to affordable financing in Uganda remains limited and unequal. According to the Uganda Bankers’ Association, women-owned enterprises account for only 24.4% of the industry’s loan book, highlighting significant barriers to formal finance.
While progress has been made, with women’s account ownership rising to 65% by 2021 as per the 2021 Global Findex Study (Fostering Inclusivity: Mainstreaming Gender in Uganda’s National Financial Inclusion Strategy (2023-2028), only 34% hold accounts at banks or formal financial institutions. This discrepancy is evident in the reliance on mobile money platforms, which, while accessible, do not fully meet the needs for business growth.
The evidence leans toward systemic and organizational constraints, with many women entrepreneurs turning to informal financial service providers. This exposes them to high interest rates, theft, and financial fraud, constraining their ability to advance economically.
For instance, 57% of women are informally insured, and 52% are uninsured, indicating a lack of formal financial safety nets.
Bridging the Gap with Innovation
To address the gaps, the GROW team is formulating a strategy to work in partnership with SACCOs and microfinance institutions to offer guarantee-based loan products that do not require collateral.
In addition, support services designed to improve financial inclusion that include bookkeeping, digital literacy training, and the establishment of group organizational structures.
Betty Amongi, Minister of Gender, Labour and Social Development, echoed these concerns.
“Despite accounting for a significant share of micro, small, and medium enterprises in Uganda, women-owned businesses make up just 24.4% of the formal loan portfolio. And while 65% of women now own a financial account, only 34% hold accounts in formal financial institutions – the rest operate largely in informal, unsecured, and sometimes risky financial environments.”
Amongi emphasized that GROW is about systemic change.
“Through the GROW Financing Facility, Innovation Grants, and soon the Women Entrepreneur Financing Learning Lab, we are supporting financial institutions and innovators to design, test, and scale solutions that meet women where they are.
Whether it’s collateral-free lending using mobile transaction data, women-centered fintech platforms, group lending models, or tailored savings and credit products—the future of inclusive finance must be built on evidence, innovation, and inclusion.”
A Dignified Path Forward
For many refugee women, access to formal finance marks the rebuilding of a dignified journey toward achieving self-reliance and resilience. Even for those with advanced skills, finding a pathway in a new country is a toll-order, and can take years.
GROW provides entrepreneurs more than just loans; it allows one to fit in, contribute, and succeed, exemplifying the impact of targeted financial inclusion efforts. These enable many women to overcome barriers and achieve remarkable success, expanding their businesses, creating jobs, and improving their livelihoods.
“I commend all the institutions that are already making bold moves to finance women differently, and I challenge others to follow suit—not only because it’s the right thing to do, but because it makes economic sense,” stated Amongi.
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