Business
IMF tells gov’t to invest in areas that will create jobs
Publish Date: May 15, 2014
IMF tells gov’t to invest in areas that will create jobs
Many youth have remained unemployed even after gradution
  • mail
  • img
newvision

By John Odyek

The IMF has urged government to direct public expenditure on areas that support economic growth and job creation in the coming years to tackle the unemployment and poverty problem.

Uganda faces the challenge of increasing unemployment especially among the youth.

Through free Universal Primary and Secondary Education, the Government expects to eradicate abject poverty and backwardness in society.

Similarly, parents hope that with education, their children will get good jobs which will reverse their plight but this is not the case.

The ministry of finance estimates that about 480,000 students leave the education system every year with over 36,000 obtaining university degrees. They estimate that over two million literate youths are jobless and a further over two million are underemployed. Only 20% (80,000) of the school leavers get employed.

“The labour market is characterized by limited job opportunities for graduates. Low productivity and low income earning in sectors such as agriculture make them unattractive to young people. Existence of skill and entrepreneurial gaps in the labour market indicates a mismatch between the training programmes offered by the country’s education system and labour needs of the country,” according to the ministry of finance.

A team from the International Monetary Fund (IMF) visited Kampala during the past two weeks to conduct the second review of Uganda’s economic program supported by the Policy Support Instrument (PSI).

The IMF mission met with senior government officials and members from the civil and private sector.

Ana Lucía Coronel, IMF mission chief and senior resident representative for Uganda said some targets under the PSI were met while others were not. Coronel said government should reduce consumption expenditure but focus on investment in infrastructure and improving productivity in  agriculture where the majority of the population are employed.

The statements, comments, or opinions expressed through the use of New Vision Online are those of their respective authors, who are solely responsible for them, and do not necessarily represent the views held by the staff and management of New Vision Online.

New Vision Online reserves the right to moderate, publish or delete a post without warning or consultation with the author.Find out why we moderate comments. For any questions please contact digital@newvision.co.ug

  • mail
  • img
blog comments powered by Disqus
Also In This Section
Fastjet starts Entebbe flights
Fastjet, one of Africa’s burgeoning budget airlines has started flights from Entebbe International Airport to Dar es Salaam’s Julius Nyerere International Airport....
USAID funds coffee policy
Efforts to implement the national coffee policy got ‘a shot in the arm’ after the United States Agency for International Development (USAID) earmarked about sh1.3b to promote development in the coffee sector. The policy is expected to rejuvenate Uganda’s coffee sector....
Uganda losing sh497 trillion in unprocessed exports
ACCORDING to trade minister Amelia Kyambadde, Uganda lost as much as $128.45m (sh373b) in 2012 in exporting goods that were not processed, packaged or branded to the UK....
Tonnes of immature fish impounded in Amolatar
A combined force of the Police and regional fisheries law enforcers mounted a surprise night operation in Amolatar district, impounding tonnes of immature smoked fish...
Vision Mobile products and services
Vision Mobile, a Small Business Unit of Vision Group provides state of the art based products, services and applications with a mission to offer the most advanced Value Add Services in Uganda....
Ugandans cautioned of fake, dirty soft drinks on market
As the Uganda National Bureau of standards (UNBS) steps up efforts to increase compliance to standards, a section of manufactures of juice are still not conforming to the required procedures and standards....
Is KCCA doing enough to curb poor hygeine?
Yes
No
Can't Say
follow us
subscribe to our news letter