UIA plans a million jobs by 2020

By Vision Reporter

At a ceremony to celebrate its silver jubilee that was held recently at Hotel Africana in Kampala, Uganda Investment Authority (UIA) acting board chairman, Eng. Tobias Karekaho, revealed that the authority was in its final stages of drafting a five-year strategic plan that aims at creating a million jobs between 2016 and 2020.

Although much has not yet been known about what the strategic plan will offer, questions arise on whether the target that seems too ambitious shall be achieved. For example, in its 25 years of existence, a total of 798,302 jobs have been created by the projects that were licensed by the authority.

The highest level of licensed employment was registered in 2010, when 84,017 jobs were created and this represented 10.2% of the total jobs created. The manufacturing sector accounted for the highest number of jobs created (262,185) accounting for 32.8% of the total jobs created.

This was followed by the agricultural sector that attracted 199,978 jobs, accounting for 25.1% of the total jobs created. Even with such jobs created, Uganda's unemployment rate has remained high, with the rates estimated at 3.8% as of 2013, with youth unemployment being estimated at around 60%.

It should be noted that the high rates of youth unemployment have been attributed to the theoretical education system that leads to a skills gap between what is taught in classrooms and what is required in workplaces.

It is estimated that more than 400,000 young people are churned into Uganda's job market annually yet it can provide approximately 8,000 jobs only. But Karekaho believes that with the backing of the Government, this ambitious plan can be achieved.

Evelyn Anite, the minister of state for planning and investment, has revealed that they intend to establish at least five industrial parks annually to create space for investors in a bid to see the jobs created by investments and Uganda's bid for a middle income status by 2020.

Outstanding investors awarded

UIA also took advantage of the celebrations and awarded local outstanding investors and individuals that have been instrumental in creating investments, a catalyst for job creation.

In a speech read by Vice-President Edward Ssekandi, President Yoweri Museveni underscored the need for manufacturers to be sensitive on quality to help Uganda's products gain competitiveness, especially at the global market fronts.