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Opinion: Investing in the Ugandan Youth as Assets for Accelerating Economic Transformation
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Uganda’s economy has largely recovered from the effects of the COVID-19; however, the economic and employment impacts have not been completely restored. Many businesses, especially those in the informal sector, are slowly recovering.
As we navigate through the post-pandemic era, employment and entrepreneurship are crucial for full recovery at both the micro and macro levels. Uganda remains largely a youthful nation. According to the 2024 Uganda Bureau of Statistics (UBOS) census report, three-quarters of Ugandans are under 30 years of age. It is positive that the young people are eager to contribute to economic growth, but face challenges in accessing capital, skills, and markets.
How can we bridge this gap and empower the youth to participate in economic transformation? Here are my thoughts.
1. Gig economy. The gig economy in Uganda (though it may not be the best option) has experienced substantial growth in recent years, driven mainly by increasing digital connectivity and the need for flexible work opportunities among young people. This shift is particularly significant for young people seeking alternatives to the traditional job market’s limited options. However, we must ensure fair pay for gig workers.
2. Entrepreneurship is key to job creation and innovation. Entrepreneurship is the backbone for job creation and the primary engine for the much-needed innovation to build a more resilient economy. It provides an alternative to employment and helps to diversify the economy, reducing reliance on a single industry.
3. Government support. In 2022, the Government introduced the Small Business Recovery Fund with an aim of facilitating access to finance directly to 50,000 MSEs (at least 40% women and 30% youth), by providing their businesses with much-needed capital injections.
This program, in addition to other initiatives such as GROW, INVITE, among others, has supported entrepreneurs and created thousands of jobs.
Together, we can create a thriving ecosystem for employment and entrepreneurship, and this calls for efforts from both the Government and the private sector.
We can transform and create a dynamic system where entrepreneurship thrives, and the overall economy transforms for long-term prosperity.
Prof. Augustus Nuwagaba is the Deputy Governor, Bank of Uganda.
