Business & Management
Economists Offer Policy Recommendations to Curb Youth Unemployment in Uganda
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.
Hoima and Kikuube Districts, Uganda – October 20, 2024
A group of third-year students from College of Business and Management Sciences’s Energy and Natural Resources Economics program visited the Kingfisher oil operations and Kabalega Airport in Hoima and Kikuube districts on October 20, 2024. Led by Dr. Peter Babyenda and Dr. John Sseruyange, and with authorization from the Petroleum Authority of Uganda, the visit offered the students an invaluable opportunity to connect classroom learning with field experience.
The primary objective of the field trip was to enhance students’ practical understanding of Uganda’s oil industry by observing the extraction and production processes firsthand. According to Dr. Babyenda, “Blending theory with real-world exposure is essential for these students, as it allows them to apply and expand their knowledge beyond the classroom.”
During the tour, students explored several key areas:
- Practical Exposure – Witnessing the operational procedures of oil extraction offered students a concrete understanding of how theoretical concepts play out in the field, enhancing their grasp of the industry.
- Economic Impact Analysis – Observing the economic role of oil production in Hoima and Kikuube allowed the students to explore its broader impact on local and global markets and its contributions to community development and Uganda’s economic landscape.
- Technical Knowledge – The students gained insights into the technical aspects of oil extraction, learning about the complexities of the operations, the innovations employed, and the challenges faced by the industry.
- Environmental and Social Considerations – Students observed the environmental practices in place and evaluated the social dynamics involved, gaining an understanding of how oil companies balance production with community and environmental sustainability.
- Career Insights – With opportunities to interact with professionals in the oil sector, students received guidance on potential career paths in the industry, helping them make informed decisions about their futures.
- Current Industry Issues – The group also delved into the status of the East African Crude Oil Pipeline (EACOP) project and discussed challenges in oil and natural gas production, examining where Uganda stands in terms of production timelines, obstacles, solutions, and the role they can play as future energy professionals.
Reflecting on the trip, Dr. Sseruyange highlighted the importance of this experience in solidifying students’ understanding of Uganda’s evolving oil industry. “This field experience not only complements what they’ve learned in lectures but also equips them with a real sense of the operational and societal impact of the energy sector,”he noted.
The students expressed their gratitude for the immersive experience, noting how it broadened their perspectives and deepened their knowledge. The field trip served as an essential step in preparing them for careers within Uganda’s energy and natural resources sectors, bringing them closer to the industry’s forefront and the future of sustainable energy in the region.
The Environment for Development (EfD) Uganda team, led by Prof. Edward Bbaale, has been
recognized as Runners-Up for the prestigious EfD Policy Impact Award 2024. Their impactful
paper, titled “Policy Options for Clean Cooking and Reduced Biomass Dependency,” earned
them a Certificate of Excellence during the 18th Annual General Meeting (AGM) of the EfD
network, held from October 3 to 6, 2024, at the Argyle Grand Hotel in Nairobi, Kenya.
Organized by the EfD Global Hub at the University of Gothenburg and hosted by EfD-Kenya
Centre at the University of Nairobi, the AGM brought together researchers and policymakers
from across the world. The event celebrated the remarkable work being done to influence global environmental policies.
Representing Uganda, Prof. Bbaale was accompanied by Mr. Gyaviira Ssewankambo, EfD-
Mak’s Office Manager, and a team of researchers and collaborators. Among those present were
Dr. Peter Babyenda, Dr. Susan Kavuma, Dr. John Sseruyange, Dr. Nicholas Kilimani, Dr.
Florence Lwiza Nsereko, Mr. Jordan Ssemwanga, Mr. Nathan Mununuzi (Ministry of Water and
Environment), and Eng. Domnic Mucunguzi (Ministry of Agriculture, Animal Industry, and
Fisheries).
Insights from the Study
The award-winning study, led by Prof. Bbaale and his research fellows—Dr. Babyenda, Dr.
Sseruyange, and Dr. Kilimani—focused on “Promoting Inclusive Clean Energy Transition in
Uganda: Evidence, Challenges, and Policy Options.” The research explored perceptions of
cooking energy systems in Uganda, with an emphasis on the over-reliance on biomass,
particularly charcoal, as the primary energy source in low-income areas.
The study revealed key barriers to the clean energy transition, including fear of electricity and
liquid petroleum gas, weak public awareness, and insufficient regulatory frameworks. These
challenges have slowed the adoption of alternative energy solutions in Ugandan households.
Prof. Bbaale emphasized the need for stronger regulatory support and awareness to foster the
country’s energy transition: “The transition to cleaner energy requires overcoming public
misconceptions and improving regulatory systems to promote sustainable cooking solutions.”
See video clips interview with Edward Bbaale and Peter Babyenda – Courtesy of the EfD Global
Hub
Edward Bbaale:
Peter Babyenda:
EfD-Mak’s Growing Impact
Prof. Bbaale highlighted the value of the 18th AGM for fostering collaboration and growth
within the EfD network. “The EfD-Mak Centre appreciates the efforts of colleagues who
submitted proposals and papers, and we congratulate Dr. Lwiza and Dr. Kavuma for their
contributions. These proposals are vital to keeping the Centre running,” Bbaale noted.
Looking ahead, he encouraged further mobilization of research fellows, recommending the
appointment of collaborative leaders and co-leaders to enhance engagement and productivity
within the Centre. A full report on EfD Uganda’s participation at the AGM is attached.
The EfD-Mak Centre’s research has continued to make waves, including a recent presentation to Parliament in May 2024, where the team advocated for regulatory frameworks to support the transition to clean energy in Uganda.
(https://news.mak.ac.ug/2024/05/efd-takes-research-findings-to-parliament-advocates-for-
regulatory-and-policy-framework-to-support-transition-to-clean-energy-for-households/)
A full report on EfD Uganda’s participation at the NAIROBI 18th EfD AGM may be accessed below.
Jane Anyango is the Communication Officer EfD Uganda
The School of Business, College of Business and Management Sciences, has concluded the 3rd Annual Doctoral Colloquium Programme, 2024, which brought together 34 PhD students, including 11 third-year and 23 first- and second-year students, for a four-day engagement held from Monday October 14 to October 17, 2024.
Organized under the leadership of Prof. Godfrey Akileng, Dean of the School of Business, and Dr. Kasimu Sendawula, the colloquium focused on the theme, “Research Grounding, Framing, Problematizing, and Making a Contribution for a Seamless PhD Experience.” The event aimed
to educate participants on research proposals and thesis guidelines, enhance scholarly writing and presentation skills, and foster networking between young and senior researchers.
The colloquium achieved its objectives through sessions on both provisional and full admission processes, addressing essential topics such as proposal and thesis structure, conceptualization, literature review, qualitative and quantitative data analysis, philosophy of methods, scholarly writing, and ethical clearance. Paper presentation sessions, held on Days 3 and 4, allowed students to refine their research ideas and enhance their understanding of PhD management policies, philosophical foundations, and scholarly writing skills.
Prof. Godfrey Akileng highlighted the remarkable progress of the School’s doctoral program since its inception in 2019. “We have 31 active doctoral students, and five graduates are expected in January,” said Prof. Akileng. He expressed pride in the school’s initiatives, noting the increasing publication rate among both students and staff, which reflects the growing research output. Prof. Akileng encouraged scholars to present their research, develop a matrix for comments received, and work diligently to finish their work on time.
Prof. Akileng also emphasized the importance of customer satisfaction in research, stating, “Our business thought is that the best strategy is having a satisfied work customer and addressing their needs.” He reaffirmed that the staff remains committed to supporting students throughout their PhD journey, urging them to stay focused and follow the plan.
In addition to the ongoing training efforts, upcoming events include the November and December research seminars, where staff members studying abroad will present their work.
During his opening remarks, Prof. Edward Bbaale, Principal of the College of Business and Management Sciences (CoBAMS), emphasized Makerere University’s strategic vision under the 2020-2030 plan, which focuses on transforming the university into a research-led and innovation-driven institution. Prof. Bbaale highlighted three key pillars of the strategy: increasing graduate enrollment, establishing research entities, and bridging research and policy.
“We aim to raise the graduate student population to 30% by 2030, with 10% being international students,” Prof. Bbaale said, adding that the current figure stands at 12%, with only 2% being international students. He also noted the creation of 68 research centers and institutes, such as the School of Business Center for Entrepreneurship and Innovation, as key steps in developing innovative solutions through collaborative research.
Prof. Bbaale encouraged students to embrace challenges and use the resources available at Makerere University to further their academic and research goals. “Your research is not just an academic pursuit; it’s a beacon of hope and a catalyst for societal change,” he said, citing the importance of interdisciplinary research and international collaboration in shaping the future of academic excellence.
Speaking at the closing of the colloquium, Dr. Julius Kikoma, Deputy Director of the Directorate of Research and Graduate Training (DRGT) at Makerere University, praised the School of Business for its progress in doctoral training. “I’m happy to see that the school has grown its capacity to train PhDs,” Dr. Kikoma remarked, adding that the DRGT is working to make the PhD journey less isolating by organizing gatherings like the colloquium, which bring students together.
Dr. Kikoma further highlighted the reforms initiated by the DRGT to streamline PhD training, including a shift from open-ended to structured programs, cohort-based admissions, and providing full admission to students. “We’ve implemented changes to help PhD students move more smoothly through their journey,” he explained.
The symposium also featured contributions from experts such as Dr. Kassim Sendawula, the Coordinator of the PhD Programme at the School of Business, who underscored the value of expert feedback in the research process. Dr. Sendawula noted that the review process provided essential skills and insights, helping scholars refine their research and develop practical solutions.
The colloquium demonstrated Makerere University’s dedication to advancing graduate training and research, fostering a supportive community for PhD students. Dr. Kikoma highlighted that 350 applicants for PhD by research were received in the current academic year, underscoring the increasing interest in graduate studies at the university. The event concluded with a call for continued efforts to support PhD students, align research with national priorities, and maintain the momentum toward achieving the university’s vision of becoming a research-led institution.
-
General1 week agoOnline Application for Government Sponsorship for Programmes offered at all Public Universities & other tertiary Institutions for 2025/2026 AY
-
General1 week agoMURBS Fund Value Grows to UGX 409.2 Billion
-
Engineering, Art & Tech1 week agoMakerere University Innovation Pod Launches Electric Mobility Skilling Programme
-
General3 days agoMakerere University at the 2024 O.R. Tambo Africa Research Chairs Annual Gathering in Ouagadougou, Burkina Faso
-
General1 week agoCEES Empowers USE Students with Business Skills to Tackle Poverty