PAC Raises Red Flag Over Utilization of World Bank Grant for Women Entrepreneurs

The Public Accounts Committee (PAC) has expressed concerns over the use of a Shs803 billion World Bank grant intended to support women-led businesses through the Generating Growth Opportunities and Productivity for Women (GROW) Project.

According to the Auditor General’s report, a significant portion of the funds is being directed towards mind-set change programs, infrastructure development, and competitions, rather than providing direct financial aid to women entrepreneurs.

The Committee Chairperson, Muwanga Kivumbi, noted that only Shs133 billion of the total grant is allocated to direct financial support for women-led enterprises, while the rest is being used by the Ministry of Gender and the Private Sector Foundation for secondary activities.

“In simple terms, out of the US$217 million, the only money available for women to borrow from is US$35 million, this is not acceptable,” Kivumbi said.

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The Commissioner for Labour, Industrial Relations and Productivity, Alex Asiimwe, explained that the grants will target sectors where women are predominantly engaged, such as agribusiness, manufacturing, and hospitality.

However, PAC members expressed concerns that the majority of the funds are not reaching the intended beneficiaries.

<span;>Tororo South County MP, Fredrick Angura, called for a re-evaluation of the grant’s allocation to ensure that a more substantial portion directly reaches women entrepreneurs. “We need to relook at the allocation of this grant to ensure that the majority of the funds go directly to the women, rather than being used for other purposes,” Angura said.

<span;>The Permanent Secretary in the Ministry of Gender, Aggrey David Kibenge, defended the holistic approach of the project, stating that it aims to address not only credit issues but also other challenges faced by women entrepreneurs. However, PAC members remained skeptical, emphasizing the need for a more significant portion of the funds to directly benefit women-led businesses.