Women leaders and key stakeholders in Busoga are urging the Ministry of Gender, Labour, and Social Development to review the stringent collateral requirements set by commercial banks for women seeking to benefit from the Generating Growth Opportunities and Productivity for Women Enterprises (GROW) project.
The World Bank-funded initiative aims to empower marginalized women through affordable loans, but many women face challenges due to the demand for land titles as collateral.
During a financial literacy training session organized by DFCU Bank for GROW project beneficiaries, several participants expressed concern over the demanding conditions.
The requirement for land titles, in particular, was flagged as a major obstacle, as most women in the region do not own land.
"The project was designed to uplift marginalized women, yet the requirement for land titles excludes many who don’t own land. It’s frustrating," said Salafina Namusobya, vice chairperson of the Women’s Council in the district.
Deborah Mutesi Magezi, Deputy Speaker of Butembe Chiefdom in Busoga Kingdom and Executive Director of the Women Initiative for Poverty Eradication (WIPE Uganda), echoed these sentiments.
She noted that the project’s goal of empowering women was being hindered by the collateral demands.
"The GROW project aims to create opportunities, but we are seeing those opportunities limited by requirements that many women cannot meet," she said.
DFCU Bank’s Strategic Partnership Manager, Ronald Ssekajja, defended the bank's policies, explaining that land titles are required to secure the loans and mitigate risks.
"We understand the concerns raised by the women, but land titles are a standard requirement for securing loans and managing risk," he said.
However, Jinja Mayor Peter Kasolo Okocha proposed that the government should collaborate with commercial banks to create alternative solutions that would enable women to access loans.
"If land titles are mandatory, the government should explore mechanisms where loans are provided to help beneficiaries secure land titles first," he suggested.
Kasolo pointed out that many people in Busoga lack land titles because land ownership is traditionally based on demarcations known as 'ebirowa', making land titles uncommon.
He recommended that commercial banks introduce a "land title loan" facility that would allow women to acquire land titles, enabling them to access the GROW project loans.
DFCU Bank’s Chief Risk Officer, Hope Nakhayenze, acknowledged the concerns and emphasized the bank's commitment to balancing empowerment for women with risk management.
At the launch of the GROW project in the Busoga sub-region, 1st Deputy Prime Minister Rebecca Kadaga cautioned commercial banks against imposing stringent collateral demands, particularly since most marginalized women do not own land.
She promised to raise the matter in Cabinet if the banks do not reconsider their position.
The government secured an 812 billion shilling grant from the World Bank for the GROW project, which is aimed at empowering entrepreneurial women.
As the debate continues, women leaders and stakeholders in Busoga are calling for swift government action to ensure the GROW project becomes more inclusive and accessible, particularly for women without land ownership.