The Government, through the Ministry of Gender, Labour and Social Development, is implementing the GROW Project with support from the World Bank to help women-owned businesses transition from small-scale survival operations into competitive and sustainable enterprises.
Women entrepreneurs who failed to secure loans under the Government’s Generating Growth Opportunities and Productivity for Women Enterprises (GROW) Project are set to benefit from non-repayable grants of up to sh107m to expand their businesses.
The grants, to be awarded under the GROW Business Plan Competition, are intended to help women-owned micro and small enterprises overcome financial barriers that prevented them from accessing the project’s loan facility.
State Minister for Labour, Employment and Industrial Relations Simon Mulongo announced the initiative during an orientation meeting for local government leaders at Mbale Resort in Mbale City on October 8, 2026.
Mulongo said the new funding window was designed to extend the benefits of the GROW Project to viable women-led businesses that could not obtain loans because of financial constraints, stringent banking requirements and credit limitations.
“We must spread project benefits widely so that every eligible woman entrepreneur gets a fair chance to scale up,” Mulongo said in his opening remarks.
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The Government, through the Ministry of Gender, Labour and Social Development, is implementing the GROW Project with support from the World Bank to help women-owned businesses transition from small-scale survival operations into competitive and sustainable enterprises.
Under the Business Plan Competition, grants will range from sh3.5m to sh107m, with a target of supporting at least 2,626 women-owned enterprises nationwide.
At least 767 enterprises in refugee-hosting districts are expected to benefit from a dedicated allocation.
The funding will be distributed under two categories, depending on the size of the business.
Micro enterprises with up to four employees and sales or assets of up to Shs10 million will qualify for grants ranging from sh3.5m to sh35.69m.
Small enterprises employing between five and 49 people, with assets valued between sh10m and sh100m, will qualify for grants ranging from sh39m to sh107m.
The funds are intended to support business expansion, formalisation, the purchase of production equipment and working capital.
Innovative businesses prioritised
The programme will prioritise innovative enterprises, particularly those applying science, technology, engineering and mathematics (STEM) to address business and community challenges.
Priority areas include construction, metal fabrication, robotics, solar energy, irrigation, waste management, commercial agricultural processing, health technology and childcare facilities for children aged between zero and three years.
However, the eligibility criteria will be broadened for applicants in refugee-hosting districts, persons with disabilities and other vulnerable groups.
Under these special provisions, eligible businesses may include poultry and goat rearing, food processing, tailoring, childcare, mobile money kiosks and catering services.
Outside the designated special provisions, general market vending, basic hair salons, event planning and subsistence farming will not qualify for funding.
Mulongo said local government leaders had a crucial role in ensuring that eligible women were informed about the opportunity and understood the requirements before applying.
He urged resident district commissioners, district chairpersons, mayors, chief administrative officers, commercial officers and women entrepreneurs’ platform leaders to mobilise beneficiaries and provide accurate information about the programme.
Applications are free
The minister emphasised that applying for the grants would be free of charge, warning officials and intermediaries against exploiting women entrepreneurs seeking government support.
“No woman entrepreneur should pay any fee to any official, consultant, or broker to access application forms or win a grant,” the minister said.
Applications will be submitted digitally through the official GROW Project website or its mobile application available on the Google Play Store.
According to the minister’s remarks, the request for applications will remain open for 30 calendar days from the official launch date.
The Government will also conduct business clinics across sub-regions to help prospective applicants prepare business proposals, budgets and supporting documents.
Applicants will undergo Credit Reference Bureau checks, financial sanction reviews and assessments of compliance with labour and human rights requirements.
Local government leaders were directed to report suspected extortion and corruption to the responsible ministry and security authorities.
They were also urged to help eligible applicants obtain local registration documents and other required paperwork without unnecessary administrative delays.
Previous beneficiaries excluded
To ensure that the new funding reaches women who missed out on the loan facility, previous GROW Loan recipients will not be eligible for the Business Plan Competition grants.
Mulongo asked local leaders to explain the restriction clearly to communities to avoid confusion and prevent applicants from developing false expectations.
He said the success of the initiative would depend on transparent implementation, proper identification of beneficiaries and effective mobilisation at the grassroots.
The minister added that every funded project would be expected to run for between nine and 12 months and be completed by June 2027.
The GROW Project seeks to improve women’s access to finance and support the growth of women-owned enterprises, with the new grant facility offering an alternative to businesses unable to meet the requirements of conventional lending.
The Government hopes the initiative will enable more women entrepreneurs to expand production, create employment and contribute to local economic development.