Business
Three fixes that could solve Uganda's jobs crisis
The first is investing in the foundations that allow businesses and workers to thrive. That means improving healthcare, education, skills training, transport, clean water, energy and other public services that make it easier for people to work and companies to grow.
Three fixes that could solve Uganda's jobs crisis
By: Jackie Nalubwama, Journalist @New Vision
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In its analysis, Country Partnership Framework (2026– 2035) and the Uganda Public Finance Review, the World Bank believes that creating jobs in developing countries requires more than economic growth. It argues that governments, businesses and development partners must work together around three priorities that can turn investment into employment.
The first is investing in the foundations that allow businesses and workers to thrive. That means improving healthcare, education, skills training, transport, clean water, energy and other public services that make it easier for people to work and companies to grow.
Prof. Dr David Katamba notes that World Bank recommendations are important because it is Uganda’s development partner. He is a professor of Corporate Social Responsibility and Management at Makerere University Business School.
He concurs with the analysis, stating that Uganda’s youth unemployment stands at over 74% because qualified youth with skills can’t find jobs to earn a living. Therefore, investment in social services could help equip young people with the skills employers need while lowering the cost of doing business.
The World Bank says its financing is linked to measurable results, citing projects such as Tunisia's employability programme, which has benefited more than 22,000 students by aligning training with labour market needs. Across its active portfolio, the institution says it has helped improve education for more than 305 million students and expanded access to quality health services for 381.1 million people. It has also launched Mission 300, an initiative aimed at connecting 300 million people in Africa to electricity by 2030.
The second pillar focuses on improving governance and creating a business environment that encourages investment. According to the World Bank, governments need to simplify regulations, reduce unnecessary bureaucracy, strengthen tax systems, tackle corruption and create predictable policies that give businesses the confidence to invest and create jobs.
Prof. Katamba highlights the importance of governance saying, “It is one of the pillars which make an enterprise sound.”
Applauding the World Bank for recommending improved governance, Prof. Katamba says, “It's because when governance systems in organisations are collapsed, or when the governance systems are compromised, the recruitment process becomes fraudulent. To mean that, for example, during the recruitment process of a finance officer, of a corporate executive, a CEO, if the recruitment process is fraudulent because of the poor governance, that gives the room for the qualified persons to be left out of employment, and thus causing unemployment and giving a job to the wrong [unqualified] people.”
The World Bank says its financing is linked to measurable results, citing projects such as Tunisia's employability programme, which has benefited more than 22,000 students by aligning training with labour market needs. Across its active portfolio, the institution says it has helped improve education for more than 305 million students and expanded access to quality health services for 381.1 million people. It has also launched Mission 300, an initiative aimed at connecting 300 million people in Africa to electricity by 2030.
The second pillar focuses on improving governance and creating a business environment that encourages investment. According to the World Bank, governments need to simplify regulations, reduce unnecessary bureaucracy, strengthen tax systems, tackle corruption and create predictable policies that give businesses the confidence to invest and create jobs.
Prof. Katamba highlights the importance of governance saying, “It is one of the pillars which make an enterprise sound.”
Applauding the World Bank for recommending improved governance, Prof. Katamba says, “It's because when governance systems in organisations are collapsed, or when the governance systems are compromised, the recruitment process becomes fraudulent. To mean that, for example, during the recruitment process of a finance officer, of a corporate executive, a CEO, if the recruitment process is fraudulent because of the poor governance, that gives the room for the qualified persons to be left out of employment, and thus causing unemployment and giving a job to the wrong [unqualified] people.”
On the other hand, Prof. Katamba says with improved governance, the right people are employed and renumerated rightfully. “Usually, when employees are not remunerated well, they will always tend to leave the jobs and they would prefer to be on the streets. Because one would say, ‘Instead of me putting my energy to waste in an organisation and then I get stressed, psychotic trauma, abandonment and I am paid peanuts, let me try my luck on the streets.’ Not knowing that in the process, he's becoming more unemployed,” he says.
The third pillar recognises that public funding alone cannot generate enough employment. The World Bank says attracting private investment—from small businesses to multinational companies—is essential because the private sector already provides about 90 per cent of jobs in developing countries.
According to Prof. Katamba, the government can only achieve its Tenfold Growth Strategy with employed youth. “There's no way [the] government can realise that when most of its energetic population and youth is unemployed,” he says, adding that a partnership with the private sector is the answer to the jobs crisis problem.
“And by the fact that the government of Uganda commits less than 10% of its national budget to developing the educating sector, that is to promote skills in Uganda, relevant skills, it becomes imperative that it cannot raise enough public funds. Henceforth, it has to tap into the private company's funds,” he says.
The World Bank, a proponent of sustainable job creation, recommends no only economic growth, but stronger institutions, better infrastructure and a vibrant private sector capable of turning investment into opportunities for millions of young people.
The third pillar recognises that public funding alone cannot generate enough employment. The World Bank says attracting private investment—from small businesses to multinational companies—is essential because the private sector already provides about 90 per cent of jobs in developing countries.
According to Prof. Katamba, the government can only achieve its Tenfold Growth Strategy with employed youth. “There's no way [the] government can realise that when most of its energetic population and youth is unemployed,” he says, adding that a partnership with the private sector is the answer to the jobs crisis problem.
“And by the fact that the government of Uganda commits less than 10% of its national budget to developing the educating sector, that is to promote skills in Uganda, relevant skills, it becomes imperative that it cannot raise enough public funds. Henceforth, it has to tap into the private company's funds,” he says.
The World Bank, a proponent of sustainable job creation, recommends no only economic growth, but stronger institutions, better infrastructure and a vibrant private sector capable of turning investment into opportunities for millions of young people.