Business 1 April 2026 Daily Monitor (Uganda)
Uganda's Banking Sector Must Adapt to Empower Women Entrepreneurs
Ugandan women, who own nearly 40% of businesses despite facing severe barriers to formal credit, represent an untapped economic force that banks must support through innovative lending practices. Stories like that of entrepreneur Justine highlight the urgent need for reforms to dismantle collateral and network gaps. Source: https://www.monitor.co.ug/uganda/oped/commentary/why-our-banking-systems-must-evolve-for-the-ugandan-woman-5410614
In Mbarara, entrepreneur Justine manages her grain milling business, supplying fortified flour to local schools from humble beginnings with personal savings. Her vision for a solar-powered plant is stalled by banks demanding land titles she lacks, despite steady contracts and cash flow.
Uganda boasts a vibrant entrepreneurial scene where women own about 38.4% of businesses, per the Mastercard Index, forming the SME backbone and key GDP contributors. Yet, with women comprising 53% of the population, only one in four women-led firms accesses formal loans, per the 2024 census.
Structural barriers persist: men dominate land ownership, excluding women from collateral-based loans, while informal networks favor male borrowers. Women juggle business and household duties, limiting their access to mentorship and opportunities.
Investing in women yields high returns, as they reinvest earnings into family education, health, and nutrition, boosting entire communities. This is a smart economic move, not charity.
Banks, policymakers, and partners must innovate with digital tools and inclusive policies, moving beyond outdated collateral demands to fuel 21st-century growth.
The article originates from Daily Monitor (Uganda), written by Agnes N. Mayanja, executive director of KCB Bank Uganda.