Business & Management
Economists Offer Policy Recommendations to Curb Youth Unemployment in Uganda
Published
3 years agoon
By
Jane Anyango
Economists from the Makerere University’s School Economics have provided policy options to help mitigate youth unemployment in Uganda.
A team of researchers led by Prof. Edward Bbaale as Principal Investigator assisted by Dr. Susan Kavuma, Peter Babyenda, Brenda Kiconco, Anitah Kyamugaba , Hennery Sebukeera and Nakigudde Claire under took a research project titled, ‘ “Empirical Review of Youth Employment Policies in Uganda”with technical and financial support from partnership for economic policy Nairobi Kenya funded by Mastercard Foundation.
The study looked at insights from different people on how youth unemployment and under employment can be solved. The research project intended to review the youth employment policies, legislations, interventions and programs with the aim of identifying the best practices for promoting youth employability, productivity, and opportunities among the youth.

The researchers worked closely with the different Institutional framework concerned with youth affairs including in the Ministry of Gender, Labour and Social Development and the Uganda Bureau of Statistics, Ministry of Education and Sports, National Planning Authority, Federation of Uganda Employers, National Organization of Trade Unions and parliament among others
The study findings were presented during the dissemination workshop held on 9th November 2022 at Protea Hotel in Kampala to members of the academia, representatives from government ministries, departments and agencies, the Private sector, civil society organizations, representatives of the youth from different divisions of Kampala and other districts and key collaborators.
The dissemination workshop was intended to validate the findings of the study through contributions, corrections,and an evaluation of the opportunities, challenges, chances, the gaps, costs of and thorough practical policy options with the aim of enriching the report and the policy recommendations in particular to government.

Representing the Principal, College of Business and Management Sciences, the Dean School of Economics and also PI Prof. Edward Bbaale noted that youth unemployment and under employment is one of the policy issues that warrant due attention.
He observed that Uganda is one of the youngest and fastest growing populations in the world with 54% of the population below 18 years of age and yet the population is growing very fast at 3.4 %.
Bbaale added that Uganda is also faced with a serious problem of high school dropout rate. Data from the Ministry of Education indicates that on average one million pupils that enroll in primary one, only 600 thousand sit the primary leaving examination and this number reduces to 300 thousand at the Uganda Certificate of education and reduces further to 100 thousand to those that go for the advanced certificate.

“The question is where these young men do and women go and who is the messiah. Is TVET, the different skilling programmes the messiah for Uganda? and more broadly even those that graduate at higher level, the question is that whether the problem is at the demand level to the extent that the economy is so much contracted and that there is no space for people to come and take employment meaning that the economy is growing without creating jobs”. Bbaale questioned.
Aware that the services sector is driving growth in Uganda and the agricultural sector is well behind services and industry as far as GDP is concerned, Bbaale noted that this means that there has been sectorial shift in GDP composition- at one time it was agriculture ahead of industry and services but now we have services ahead of the two.
“Whereas we have had the sectorial shifts in the GDP composition, there are no sectoral shifts in employment and majority of our people still depend on agriculture and there is a smaller cake despite its holding 60% of our people coming with questions of low productivity and poverty.

And so given that, if majority of Ugandans are not employed in the services sector which is leading the GDP composition, can we say our economy is having a jobless profile? We are growing without jobs and then on the other hand, can we say it is the supply side and skills mismatch? Do those people that graduate every year in universities and other institutions match the available opportunities?.Prof. Bbaale questioned.
Prof. Bbaale also stressed that the issue of youth unemployment and under employment is topical and has gone on for sometime but not leading the same in finding a lasting solutions for the youth unemployment problem.
He congratulated the research team for successfully implementing the study and partners – the Mastercard Foundation through the partnership for economic policy in Nairobi for sponsoring the different activities of the project as well as the stakeholders from MDAs, Private sector, CSOs and development partners for contributing wonderful ideas.

Unemployment associated with Labor market information system, curriculum design and population growth
The Assistant Commissioner in charge of Youth Affairs in the Ministry of Gender, Labour and Social Development Kyateka Mondo thanked the PI and team for putting the research together saying, they are looking forward to receiving what the university thinks is the solution to unemployment question in Uganda.
In addition to addressing the issue of labour market information system, the commissioner observed that it is prudent for training institutions to interface with employers while designing the curriculum but also address the issue of population growth.
“The problem in Africa is that we train today what was needed for yesterday. Are the training institutions in touch with the people who employ? Do you have a time where we interface with the Mukwanos and UMAs of this world and all the people who need the work force?

Second,… we are likely not to break even until we address the issue of population growth. As long as we are producing as if there is no tomorrow. As long as we believe in Genesis that go out there and multiply and fill the world.How are you going to prepare and skill them to get quality education. And the man who tells you to go and fill the world produced only one son –Jesus Christ.”, Mondo stated adding that:
“.. until the population question is addressed and until the training institutions sit together with who is going to employ their products, , there will be nothing new that we are going to hear. The skills given at training institutions do not match the labour markets. So until we move away from the book of lamentations to the book of acts and we act.
Fix the issue of so many children, fix the issue of poverty among our people, fix the issue of a functional and prudent labour market information system. We need action today to bring hope to so many young people in this country but we also have to do mindset deconstruction”. Mondo asserted.

Mondo further observed that over 45 universities are churning out young people every year, operating under a jobless economic growth in that, the economy is not producing the jobs that are badly needed. He added that if unemployment question is fixed, many other problems like poverty, drug abuse early pregnancies, theft, suicide would have been fixed.
Formal employment and trends in youth unemployment in Uganda
Presenting the study findings Peter Babyenda noted that formal employment share of government jobs declined from 6.8% in 2012/13 to 6.5% in 2016/17 while total formal private employment declined from 200,000 jobs in 2012/13 to 141,000 in 2016/17. In 2016/17, only 13,000 (9%) youth had a formal private job.
On trends in youth employment, Babyenda reported a fluctuating Labour Force Participation Rate – 57% (2016/17), 66% (2017/18), 62% (2018/19), and an increasing youth unemployment rate – 13% (2016/17), 18% (2017/18), 17% (2018/19)
Babyenda presented worrying statistics on Youth neither in Employment nor in Education or Training (NEETs) estimated at 39%. This is worrying – where are they? He said there are twice young ladies in NEET as men largely found in in Greater Kampala, Northern Uganda and Western region which is a big threat to Uganda’s social cohesion and political stability.

NEETS according to Babyenda are largely attributed to low educational attainment (including among their parents), living in deprived neighborhoods, low socio-economic status and other barriers to participation like pregnancy or disability.
“The 2018/19 Annual Labour Force Survey report reveals that almost half of the youths (46%) are not qualified for the existing jobs because they do not have required skills.Low wages for youth as the median wage of public sector employees is estimated at UGX 510,000 ($134), while in Private Sector it is estimated at UGX150,000 ($39).
Existing employment policies seem universal and do not segregate persons in formal and informal sectors in their coverage. More so, there is limited evidence to show the expansion of social protection coverage in the informal sector as required by the National Social Protection Policies. It also remain unclear whether the existing youth employment programs are achieving their targets” Mr. Babyenda reported.

Key findings from the evaluation of the different Youth Empowerment Programs (YEP)
The study indicated that although access to youth employment funds had a positive effect on youth business expansion, there was no significant evidence of the fund’s effect on job creation.
Major stakeholders in YEP were not fully fulfilling their mandates; while on the policy front, the findings show that the youth funds have a long-term impact on its intended goals.
Promoting youth entrepreneurship according to this study should be approached holistically (not just through credit) and should target productive sectors with high employment creation potential.

The need for a strong institutional framework including M&E and accountability frameworks and the removal of barriers to youth self-employment were also proposed.
The study disclosed a number of challenges faced by the youth involved in Youth Employment programmes and they included ; Misuse of YEP funds, limited follow-ups of beneficiaries due to inadequate monitoring and supervisory capacity, Political Interference, High default rates (failure repay loans/resolving funds) and Poor group formation dynamics
Beneficiaries according to this research, reported delayed release of funds to youth groups or beneficiaries by the ministry of finance and implementing agencies – MoGLSD, local governments, Corruption, Inadequate information on existence of youth, Education miss-match affecting youth employability AND Limited preparation of beneficiaries
The study notes that common youth challenges in Uganda include: Unemployment, underemployment and undignified work.
The study further notes that Uganda has initiated a number of Youth Employment programs over time such as the youth livelihood fund, presidential youth initiatives, youth skilling programs and free vocational education among others.

Many Youth (39%) still either not in School or employment and more among females (50.5%) and the need for specific Policy change to ensure that the youth obtain right skills for existing employment opportunities in the country.
Policy recommendations
The study recommends that government prioritise policies that create jobs and address youth unemployment/under-employment and strengthen the YEP’s Monitoring, Evaluation, Research, and Learning (MERL) system.
The study proposes the development of a clear resource mobilization strategy during the YEP design phase and expansion of YEPs into new locations with updated priority areas.
The policy initiatives should be SMART and should reinforce labour market participation, especially regarding discouraged workers and women.
Other policy recommendations include benchmarking with other countries that have succeeded; Reduce of political interferences in the bureaucratic process of the YEP implementation; Increase budget allocation to YEP and also improve the adequacy and effectiveness of the technical support unit of these programs.
In addition, the study advocates for holistic youth employment policy initiatives as opposed to piecemeal, ad-hoc, under-funded and poorly implemented programs. The programs should be rooted within a wider framework that places structural transformation of the country such as NDP III, Vision 2040, among others.
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Business & Management
Driving Sustainable Growth: Eco-Efficiency and Cleaner Production are vital in shaping the future of Micro, Small and Medium Enterprises
Published
5 days agoon
April 20, 2026
By Ritah Namisango and Christopher Kaahwa
On Wednesday, 15th April 2026, the School of Business under the College of Business and Management Sciences (CoBAMS) at Makerere University hosted a project dissemination workshop that brought together researchers, practitioners, policymakers and faculty members.
The workshop focused on the presentation of findings and policy recommendations from the research project titled: Promoting Eco-Efficiency (EE) and Cleaner Production (CP) for sustainable development of Micro, Small and Medium Enterprises (MSMEs) in Uganda.
Opening the workshop, Associate Professor Godfrey Akileng, the Dean, School of Business represented by Dr. Anthony Tibaingana, the Head, Department of Marketing and Management welcomed participants and highlighted the role of research in connecting Makerere University to the wider community.
He noted that MSMEs form the backbone of Uganda’s economy making up the largest share of businesses across sectors and because of this, any meaningful research must speak directly to their realities.

The Dean of the School of Business commended the project team namely Dr. Marion Nanyanzi, Dr. Kasim Sendawula, and Associate Professor Peter K. Turyakira, for positively contributing to the university’s goal of being a research-led institution.
He explained that Eco-Efficiency (EE) is about using available resources wisely not just for today, but for tomorrow and generations to come. “In a country where most businesses operate on a small scale, understanding how to produce more with less is essential,” he said.
Dr. Tibaingana acknowledged the government of Uganda through the Makerere University Research and Innovation Fund (MakRIF) for funding the research project titled, Promoting Eco-Efficiency (EE) and Cleaner Production (CP) for sustainable development of Micro, Small and Medium Enterprises (MSMEs) in Uganda. He recognized Professor Fred Masagazi Masaazi, Chairperson of the Mak RIF Grants Management Committee (GMC) and thanked him, for gracing the dissemination workshop with his personal presence.
Achieving sustainable growth through eco-efficiency and cleaner production
The main presentation led by Dr. Marion Nanyanzi, the Principal Investigator (P.I.) unpacked the research project in a detailed and practical way. At its core, the study explored how MSMEs, particularly in the Food and Beverage (F&B) Service sector in Uganda can achieve sustainable growth by balancing three key areas: economic performance, environmental responsibility and social contribution.
From a social perspective, Dr. Nanyanzi stated that businesses were found to be playing an important role in creating jobs, supporting local suppliers, and contributing to community activities. She added that the study was also focused on reducing environmental harmful practices such as reliance on charcoal and firewood and adopting cleaner energy sources that would economically yield increased profits for enterprises.

The study revealed that while these enterprises significantly contribute to employment and government revenue, they face serious constraints pointing out that high operational costs especially electricity remain a major challenge. “ So, many businesses are forced to turn to cheaper alternatives that are harmful to both health and environment creating a difficult balance between survival and sustainability,” she said.
Amidst these challenges, the study highlighted the resilience and creativity of entrepreneurs. It was found out that many business owners have developed coping strategies to remain operational with some of them adjusting production depending on customer flow especially in areas such as Kampala where demand fluctuates with academic calendars. Dr. Nanyanzi noted that other entrepreneurs have found ways to manage resources more carefully for instance through switching on refrigerators at night when electricity tariffs are lower or re-using water to reduce costs.
Makerere University Guest House highlights its cleaner production strategy
Adding a practical perspective to the study, Mr. Patrick Ojiambo Lwande, the manager of Makerere University Guest House shared how cleaner production is being implemented by the facility in its everyday operations. He mentioned that the facility undertakes waste segregation, recycling and proper waste management as key practices. “Organic waste is separated and repurposed, recyclable materials are re-used and hazardous waste is carefully handled to avoid environmental pollution,” he stated.

Appreciation of eco-efficiency and cleaner production measures
These practices reflect an emerging understanding of eco-efficiency by business owners who are beginning to recognize that reducing waste and conserving resources can directly improve their production line.
The study also found out that many enterprises are making efforts towards cleaner production. Hygiene standards are being improved, waste is better managed and emissions are controlled through simple measures such as chimneys and ventilation system. In some cases, food waste is used as animal feed while other organic materials are re-used in farming. However, the progress to transition towards more sustainable practices is slowed down by various obstacles including limited financial capacity, lack of technical skills and low awareness among business owners.
Key recommendations
To address these gaps, the project team proposed the following practical recommendations:
- Increasing access to affordable financing by government and financial institutions through introducing subsidies, grants, or low-interest green financing schemes to support investment in cleaner production technologies,
- Promoting public-private partnerships to lower the cost of eco-efficient equipment and infrastructure,
- Undertaking capacity building and training programmes, awareness and sensitization campaigns,
- Strengthening institutional and regulatory frameworks, research and innovation support,
- Providing support for small and informal businesses by designing tailored interventions for micro and small enterprises, and
- Encouraging business clustering and cooperative models to enable shared access to eco-efficient technologies and resources.
MakRIF supports research that addresses national priorities
Professor Fred Masagazi Masaazi, Chairperson of Mak-RIF Grants Management Committee (GMC) emphasized the importance of research that addresses national priorities, noting that government support for research is meant to generate practical solutions.

Professor Masagazi Masaazi highlighted the critical role of micro, small, and medium enterprises (MSMEs) in Uganda’s economy, describing the research presented as both timely and relevant. “This is exactly the kind of research Uganda needs — research that directly impacts society and supports economic transformation,” he said.
He encouraged researchers to explore collaborations across disciplines. “Bringing together expertise from different fields can lead to stronger and more impact-oriented solutions that respond to the country’s development needs,” he added. He also called for greater engagement with policymakers and industry players during dissemination.
Research and Industry pathways
The Dean, School of Business, Associate Professor Godfrey Akileng urged researchers, faculty and participants at the dissemination workshop to rethink how research translates into real economic value, emphasizing stronger research to industry pathways at Makerere University and beyond.

Promoting environmental compliance
Mr. Peter Ssekajja, Senior Environmental Officer (Cleaner Production), National Environment Management Authority (NEMA) informed participants about the ongoing efforts to promote environmental compliance, referencing the establishment of a Compliance Assistance Unit and the introduction of the National Environment Sustainability Awards as some of the supporting measures.
He stated that these initiatives aim to support businesses in adopting sustainable practices while recognizing those that are leading the way. “Environment is no longer just about enforcement, but also about guidance, innovation and collaboration,” he emphasized.

Mr. Ssekajja reflected on the changing nature of environmental challenges as populations grow and resources becoming more strained. He appealed for efficient and responsible use of resources by business owners. He implored the business owners to consider sustainability not as a burden, but as an opportunity.
Participants enlightened on eco-efficiency and cleaner production
Dr. Jude Mugarura, the Head, Department of Marketing and Management, appreciated the dissemination workshop which presented them with an opportunity to listen to both the research project team and two practitioners namely Makerere University Guest House, and the National Management Environment Authority (NEMA). “We are therefore able to bridge the academia and the field of practice,” said Dr. Mugarura.

Dr. Seperia Bwadene Wanyama, from the School of Business, thanked Mr. Peter Ssekajja from NEMA for his presentation on cleaner production and eco-efficiency, which demonstrated to the participants some of the day-to-day wasteful practices with respect to resources, that they were engaged in, without knowing the implications. A key highlight focused on the usage of water in toilets which indicates the button to press after a short call, and the one to press after a long call, which would greatly save water consumption. “Learning is a continuous process. I have learned from the presentations of the findings by the research project team, as well as, Mr. Peter Ssekajja, who provided an informative presentation on real life practices on eco-efficiency and cleaner production.”
Conclusion: Toward a Clean and Resilient Economy
The workshop concluded with a strong call for collective action to support MSMEs in adopting eco-efficient practices. With the right support, small businesses can become engines of sustainable development. “This study provides practical insights that, if implemented, can transform MSMEs into drivers of sustainable development,” Dr. Sendawula emphasized.

Overall, the research outlines a clear pathway toward a greener, more resilient Ugandan economy—where MSMEs thrive while contributing to environmental sustainability and social well-being.
Business & Management
Academia Urged to Probe Donor Behaviour as Aid Cuts Threaten Service Delivery
Published
5 days agoon
April 20, 2026By
Jane Anyango
Academics, researchers and students at Makerere University have been urged to deepen research into whether international donors cooperate or compete in the provision of aid, amid growing concerns that shifts by major funders could significantly affect service delivery in developing countries.
The call was made during a public lecture delivered on April 16, 2026, by French economist Nathalie Ferriere, titled “Donor Cooperation or Competition: What Do We Know from Economics Research and What Should We Investigate.” The lecture, part of the Environment for Development Initiative seminar series, attracted faculty, researchers and students .

Ferriere, an Associate Professor at Sciences Po Aix affiliated with the Aix-Marseille School of Economics, is in Uganda for a two-week research engagement involving consultations with government institutions including the Ministries of Finance and Health as well as local governments.
Study Donor Reactions to Aid Withdrawals
Ferriere said her research focuses on how donors respond when a major funder withdraws support particularly in sensitive sectors such as family planning.
“My research here is about the interaction between family planning providers’ aid. I look at how the withdrawal of US aid in given years affects the spending of other donors,” she explained.
She noted that her findings show a delayed but concerning pattern.

“Once the US stops giving family planning aid, other donors at the beginning do not react for one or two years but after, they also start to reduce funding,” she said.
Ferriere warned that such trends could have direct implications for countries like Uganda, where a significant portion of health services relies on foreign aid.

“If you have a decrease in this aid, you will have a decrease in family planning provision,” she said adding that governments must anticipate such shifts.
“If you want to keep the same level of services, the government should increase its own expenditure. My next research will be to understand how governments respond in such situations,” she added.

Lecture Opens New Research Frontiers
College Principal and EfD centre Director Edward Bbaale described the lecture as timely and aligned with the university’s strategic direction to strengthen research and international collaboration.
“The topic speaks a lot to me because it opens up research frontiers. What should we really take on as researchers? How else can we look at cooperation or competition in terms of aid?” Bbaale said.

He commended Ferriere for partnering with Makerere researchers on aid-related studies, noting that such collaborations are critical for building a research-driven institution.
“We are excited that of all universities in Africa, you chose to work with researchers from Makerere University,” he said.

Bbaale emphasized that the university is positioning itself as a research-led institution, with internationalization and partnerships at its core.
“A research university is not only about teaching. It is about meetings like this to exchange ideas, to understand where we are and where we are going,” he added.
Donor Behaviour Key to Development Outcomes
Lecturer John Bosco Oryema said the lecture underscored the importance of understanding donor dynamics for countries dependent on external funding.

“When a big donor behaves in a specific way, other donors will follow in the same way,” Oryema noted.
“For developing countries that depend on aid, we need to study the behaviour of our donors. When one reduces, others may also reduce, and our development interventions may fail,” he warned.

Researcher Alice Nalwera highlighted the tendency of donors to align their decisions based on actions taken by leading funders.
“Most donors tend to cooperate and follow what others are doing. There is an aspect of information sharing,” she said.

“What the US is doing will greatly influence what other donors do in terms of disbursement,” she added..
Evelyn Nizame, a third-year economics student said cooperation among donors is essential.

“It is very important for donors to cooperate on key projects to deliver quality services to the people,” she said.
Another student, Nabakoza Joan, emphasized the risks of fragmented aid. “When there is a lot of competition, there is fragmentation of funds. But if donors cooperate under one policy, it leads to better outcomes for developing countries,” she explained.

Business & Management
EfD Uganda sends off internee Ruth Asiimwe to African Development Bank, prides in strong mentorship
Published
5 days agoon
April 20, 2026By
Jane Anyango
Environment for Development (EfD) Centre at Makerere University on 16th April 2026 bid farewell to its third intern, Ruth Asiimwe, who has secured a position with the African Development Bank in Juba South Sudan, with staff and alumni hailing the programme’s growing record of nurturing top talent.
Asiimwe’s departure adds to a list of successful transitions by EfD interns into key national and international institutions. The centre’s first intern, Alice Nalweera, joined the Economic Policy Research Centre (EPRC) before becoming an assistant lecturer at Makerere University’s School of Economics, while the second, Lean Ankunda, was recruited by the Bank of Uganda.
Speaking at the farewell, Policy Engagement Specialist Peter Babyenda said Asiimwe’s achievement reflects the strength of EfD’s mentorship model.

“In the same way we bid farewell to Alice and Lean as they moved on to EPRC and Bank of Uganda respectively, today we are here again because of the mentorship we are providing,” Babyenda said. “Ruth is now joining the African Development Bank in Juba, and we are proud of her.”
Babyenda also credited the EfD leadership and partners, noting that the Sida-funded centre, established in 2019, has consistently invested in building research capacity among young scholars.

“We started this mentorship programme to help students learn from what we are doing and become researchers. Wherever you go, please represent us well,” he added.
“A nursery bed for young professionals”
The Director of the EfD Makerere Centre, Prof. Edward Bbaale, described the centre as a “nursery bed” for young professionals, emphasizing its role in shaping future leaders.
“EfD is a place where we nurture seedlings and later transplant them into the main garden. Ruth has been very diligent and professional, and I have no doubt she will represent us well,” Bbaale said.

He added that Asiimwe’s move extends the centre’s influence beyond Uganda. “She is not leaving the EfD network; rather, our footprint is expanding to the African Development Bank and to another country. This makes collaboration easier and strengthens our presence.”
Centre Manager and Supervisor Gyaviira Ssewankambo said the internship programme was introduced to strengthen internal capacity and has since evolved into a critical talent pipeline.

“Ruth has made us proud. She set a high benchmark, and we expect those coming in to build on that,” Ssewankambo said.
Research Fellow Dr. Nicholas Kilimani highlighted the importance of targeted mentorship and talent identification in building a strong team.

“We are dealing with highly specialised talent. The approach of identifying and nurturing dedicated young professionals has paid off, and Ruth is a clear example,” he said.
Staff members also praised Asiimwe’s character, describing her as humble, disciplined, and professional. Data Manager Fred Kasalirwe noted that beyond academic excellence, her soft skills set her apart.

“You may be academically strong, but without soft skills it is difficult to thrive. Ruth is extremely humble and will blend well in any environment,” he said.
Administrative Officer Hilda Makune echoed similar sentiments, saying Asiimwe’s positive attitude and interpersonal skills made her stand out.

“We will miss her. Her humility and teamwork have been exceptional, and we are confident she will represent us well,” Makune said.
Alice Nalwera, the pioneer intern, urged Asiimwe to uphold the centre’s reputation and inspire others.

“Wherever we go, we carry EfD with us. Talk good about the centre and inspire other young women to follow this path,” Nalwera said.
In her remarks, Asiimwe credited EfD for shaping her professional journey, emphasizing the importance of a supportive work environment.

“I have learned that working in a good environment with supportive leadership motivates you to do better. EfD has given me that foundation,” she said.
She also thanked her supervisors and colleagues for mentorship and guidance, noting that the experience had prepared her for the demands of her new role.

Asiimwe’s departure coincided with the introduction of a new intern, Kevin Apolot, who takes over as the centre continues its mentorship programme aimed at producing the next generation of researchers and policy professionals.

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