New Shs35b Stanbic-UNOC programme to support 12,800 women entrepreneurs in Gulu

GULU — Thousands of women-owned businesses and smallholder farmers in Northern Uganda are set to access affordable credit, business development services and new market opportunities under a Shs35 billion programme aimed at accelerating enterprise growth and reducing dependence on predatory money lenders.

The five-year initiative, jointly implemented by Stanbic Business Incubator with funding from the Uganda National Oil Company (UNOC) and the Gates Foundation, will provide subsidised financing, financial literacy training, business mentorship and agricultural value chain support across Northern and Eastern Uganda.

At the centre of the programme are the Agriculture Development Programme (ADP) and the Women Economic Empowerment (WEE) Programme, both launched in Gulu City over the weekend.

The programme comes as access to affordable finance remains one of the biggest constraints facing Uganda’s micro, small and medium enterprises (MSMEs), particularly women-owned businesses that often struggle to secure bank loans because they lack collateral or formal financial records.

Beneficiaries will access loans at a subsidised annual interest rate of 10 percent, significantly below prevailing commercial lending rates.

Speaking at the launch, Stanbic Business Incubator Chief Executive Catherine Poran said the initiative is designed to move women entrepreneurs and farmers from informal survival businesses into commercially viable enterprises.

She said the programme will equip participants with financial management skills, improve productivity and connect them to reliable markets.

The agriculture component will initially support 100 farmers in Gulu City and Nwoya District through training in climate-smart farming, post-harvest handling, financial literacy and market linkages.

“We are helping farmers build sustainable businesses by improving productivity and ensuring they can access formal financial services and better-paying markets,” Ms Poran said.

She noted that while many farmers produce enough for local consumption, weak business management, limited financial inclusion and poor market access continue to constrain commercial growth.

Beyond agriculture, the women economic empowerment programme targets micro, nano and small businesses operated by women, many of whom remain excluded from formal banking.

Under the programme, entrepreneurs will use Stanbic’s FlexiPay digital platform to build transaction histories and financial records that can improve their eligibility for future financing.

“This is about creating bankable businesses,” Ms Poran said, adding that digital financial records could eventually unlock larger financing opportunities for women entrepreneurs.

UNOC National Content Specialist Jessica Kyeyune said the state-owned oil company is supporting the programme as part of efforts to strengthen local enterprises so they can participate in opportunities emerging from Uganda’s oil and gas industry.

She said improving product quality, post-harvest handling and business management would help more farmers and small businesses meet the standards required by processors, exporters and large corporate buyers.

“We want women and farmers to produce goods and services that can compete in national and international markets,” Ms Kyeyune said.

The initiative also aligns with government’s efforts to expand household incomes through commercial agriculture and enterprise development under the Ten-Fold Growth Strategy.

Gulu City Mayor Julius Acire Labeja said affordable financing would provide an alternative to informal lenders who charge exorbitant interest rates and often confiscate borrowers’ national identity cards as security.

To broaden access, the city will establish two Savings and Credit Cooperative Organisations (SACCOs) in each of its 32 wards.

The arrangement will create 64 SACCOs with an estimated membership of about 12,800 women entrepreneurs, providing a structured platform for savings, borrowing and business growth.

For many business owners, the programme offers an opportunity to escape expensive informal borrowing.

Lilian Lakot, a trader in Bardege-Layibi Division, said she has repeatedly relied on money lenders to finance her small retail business.

“I operate with very little capital, so whenever I need stock I borrow from money lenders who keep my national ID until I repay the loan,” she said.

However, she urged programme implementers to ensure transparency in selecting beneficiaries.

The Shs35 billion programme will be rolled out over five years across Northern and Eastern Uganda, with a focus on expanding women’s participation in formal financial services, strengthening agribusinesses and creating sustainable enterprises capable of accessing larger domestic and export markets.