Uganda's GROW Grants Put Non-Repayable Capital Behind Women-Owned Enterprises

Uganda is preparing a new non-repayable grant window for women-owned enterprises, setting a ceiling of Shs107.07 million for small businesses and targeting thousands of firms that missed out on financing through the GROW loan programme.

The Business Plan Competition Grant is part of the wider Generating Growth Opportunities and Productivity for Women Enterprises project. The government says at least 2,626 women-owned enterprises are expected to benefit nationally, including at least 767 in refugee-hosting districts.

That structure matters because it separates grant support from debt. GROW loans remain one route for women entrepreneurs, but this window is aimed at businesses that could not secure loan finance because of constraints such as bank requirements, credit limitations or financial conditions. For some enterprises, especially those still formalising or expanding from a narrow base, a non-repayable capital injection can change the risk calculation.

The proposed grant bands are substantial. Micro enterprises are expected to receive between Shs3.5 million and Shs35.69 million, while small enterprises may access between Shs39.259 million and Shs107.07 million. The funds are intended for expansion, formalisation, equipment purchases and working capital.

The sector priorities are also worth noting. The government has pointed to innovative businesses, including those applying science, technology, engineering and mathematics, as well as green and climate-resilient sectors such as solar energy, irrigation, waste management, agricultural processing, health technology and childcare facilities for children aged zero to three.

That list shows how women's enterprise policy is becoming broader than microfinance language. A woman-owned business may be working in a village service market, a green technology supply chain, agricultural processing or childcare infrastructure. Treating those sectors as eligible for growth capital acknowledges that women entrepreneurs are part of productive systems, not only household survival economies.

There are guardrails. Women who have already received GROW loans are not eligible, and applications are expected to go through digital channels. Selection will include Credit Reference Bureau checks and assessments tied to labour and human-rights compliance. The minister also warned applicants not to pay anyone for forms or promises of access, stressing that applications are free.

For SheMeansNews readers, the useful signal is the shift from access-to-loans language to a wider capital toolkit. Debt is not always the right instrument for an enterprise trying to expand equipment, formalise operations or absorb climate and care-sector risks.

The open question is whether the process will be simple enough for the intended businesses to use. Grants can be transformative, but only if eligible entrepreneurs can understand the criteria, prepare credible plans and apply without being filtered out by paperwork, connectivity or gatekeepers.