A launch held at The Nile Luxe Hotel along Nalufenya Road in Jinja City aimed to bring the GROW LOAN closer to women. In partnership with the World Bank, DFCU Bank was selected as one of five banks to collaborate with the Private Sector Foundation Uganda, supported by the Ministry of Gender, Labour, and Social Development of Uganda.
As a program under the Ugandan government, the GROW LOAN primarily focuses on helping women’s businesses grow from one stage to another so that they can effectively support their families and contribute to the country’s economic development.
Ms. Hope Nakhayenze, the Chief Risk Officer at DFCU Bank, representing the CEO and the Executive Committee of DFCU Bank, disclosed that this loan scheme will offer loans ranging from 4 million Ugandan Shillings to 200 million Ugandan Shillings.
“The goal of GROW LOAN is to financially support women with already established businesses, helping them to expand,” said Ms. Nakhayenze.
In partnership with the Government of Uganda, she advised women applying for this loan to implement risk management strategies to ensure proper use and management of the funds.
Regarding collateral, Ms. Nakhayenze suggested that women could offer whatever they have as security. In the Busoga Sub-Region, most people have “Bibanja Ownership,” which can be validated and used as collateral for acquiring the loan. Other forms of collateral include national IDs, 50% ownership of the business by women, car logbooks, and bank statements.
In addition to financial support, DFCU Bank will offer financial advice on how to successfully run a business. The bank will also track how the loan is used, monitor the business’s location and management, and ensure that the funds are used efficiently, making it easier to repay the loan.
“When the loan is paid back properly, loyal clients may qualify for interest discounts,” added Ms. Nakhayenze.
Jinja City Mayor, Kasolo Peter Okocha, expressed appreciation to the World Bank and DFCU Bank for this initiative aimed at supporting women in growing their businesses, noting that women are the backbone of families.
However, he expressed concern about some of the requirements for obtaining the loan, such as land titles and car logbooks, which are not common among women in the Busoga Sub-Region. He explained that it is rare for women to have land titles in their names, as inheritance practices often favor male children.
The mayor urged the bank to assist the few women who own land in obtaining titles so they can benefit from the GROW LOAN. This would provide both financial support for their businesses and land title acquisition.
He also praised the government of Uganda for using banks to offer loans, noting that banks are strict about loan repayment, which encourages seriousness in business handling.
He called on women to use the loans responsibly, emphasizing that accountability will be required. He also urged men not to misuse the funds, but rather to support the women in utilizing the loans for their intended purpose.
Mubezi Irene, CEO of East Star Health Products, shared her journey, starting with 50,000 Ugandan Shillings to produce tea powder from avocado seeds. DFCU Bank financially boosted her business after she presented her idea.
“I was first trained by DFCU Bank on how to manage a business and its finances, which made them my business partner,” she said.
Ms. Mubezi said DFCU Bank helped elevate her business from 50,000 Ugandan Shillings to millions today.
Ms. Mubezi, the winner from the Busoga Sub-Region, was later taken abroad to learn from other women running successful companies. She encouraged women to start with the little they have, as more opportunities will arise along the way.
