Graduate unemployment in Uganda remains a pressing issue, with figures reported by various experts as high as 80 per cent. 

However, the Uganda Bureau of Statistics (UBOS) states that the graduate unemployment rate currently stands at 15.2 per cent.

Speaking at a high-level meeting held at Makerere University on November 21, 2024, UBOS Deputy Executive Director, Dr. Vincent Fred Ssenono, attributed the challenge to the increasing number of graduates entering the labour market.

“Unemployment in this context refers to young people between 18 to 30 years who have the skills required to perform a job, actively seek work, but remain without income-generating opportunities,” Dr. Ssenono explained.

The meeting, organised by the State House Investors Protection Unit (SHIPU), brought together academicians, government representatives, and private sector experts to devise actionable solutions to graduate unemployment.

Col. Edith Nakalema, the Head of SHIPU, emphasised that the outcomes of this discussion would inform a solutions paper to be presented to President Yoweri Kaguta Museveni.

“We aim to develop a comprehensive proposal by next week for submission to the President,” she noted.

Col. Nakalema underscored the importance of collaboration between the government, academia, and the private sector to create employment opportunities and foster sustainable development.

“Graduates deserve our attention because they represent an investment by their parents and the nation. We must equip them with entrepreneurial skills to empower them as job creators rather than job seekers,” Col. Nakalema stated.

She also emphasised the need for universities to design and implement industry-focused programs in collaboration with industry leaders. 

“We must go beyond competency to nurture true expertise and mastery in high-demand trades both locally and internationally,” she added.

Startup capital and skills empowerment:

Prof. Bruce Kirenga, the Director of the Makerere University Lung Institute, proposed the allocation of startup capital to unemployed graduates and academic institutions, enabling them to create knowledge-based enterprises, including initiatives within the informal sector.

“This strategy empowers young Ugandans to take control of their careers, harness their skills, and build sustainable businesses that contribute to Uganda’s economic development,” Prof. Kirenga remarked.

One of the proposed measures is the introduction of placement programs within all Ministries, Departments, Agencies (MDAs), and private sector companies.

These programs aim to provide fresh graduates with hands-on experience by incentivizing employers through tax relief and wage subsidies, particularly for Small and Medium Enterprises (SMEs).

Prof. Kirenga also highlighted the creation of a special graduate scholarship fund to support upskilling and vocational re-orientation.

“The fund will enable graduates to acquire specialised knowledge in critical fields such as engineering, healthcare, IT, and agriculture, which are essential to Uganda’s long-term growth,” he explained. 

Private sector's role and challenges:

Mr. Stephen Asiimwe, the Executive Director of the Private Sector Foundation Uganda, highlighted the private sector’s critical role in job creation but lamented the unfavourable business climate.

“Access to affordable capital remains our biggest issue. The government must invest in idea incubation and support startups to ensure they grow into sustainable businesses capable of attracting equity investment,” Mr. Asiimwe said.

He called for reforms in Uganda’s copyright laws to protect creators and their intellectual property. Additionally, Mr. Asiimwe urged the government to explore opportunities for exporting skilled labour, citing Kenya’s success in this area.

“The economy is not creating enough jobs. Even the startups we have are failing due to an unfavourable investment climate,” he observed.

Tax incentives, policy reform:

Dr. Joseph Muvawala, the Executive Director of the National Planning Authority (NPA), criticised the taxation of new startups, which he argued stifles innovation and growth. 

“If we can offer tax holidays and capital support to foreign investors, why not extend the same benefits to our local startups?” Dr. Muvawala questioned.

He also identified skill mismatches as a key driver of unemployment, urging the establishment of graduate employment models and apprenticeship placements to reskill the labour force.

Revolutionising education and training:

Academics at the meeting stressed the need for curriculum reforms to align with the job market’s evolving demands.

Prof. Tonny Oyana, Principal of the College of Computing and Information Sciences (CoCIS) at Makerere University, pointed out the absence of training in emerging fields such as artificial intelligence and nanotechnology.

“These are untapped areas with significant market potential that our graduates need to explore,” Prof. Oyana said.

On the other hand, Col. Nakalema reinforced this sentiment, urging universities to prioritise the development of innovative, market-driven programs and foster knowledge-based industries.

Government initiatives and future plans: 

The government plans to establish a one-stop labour market system to streamline job placement processes and ensure employment opportunities are accessible to graduates. 

Additionally, strategies for population control were discussed to align workforce growth with job market capacity. 

The Makerere University Vice-Chancellor Prof. Barnabas Nawangwe expressed optimism about the proposed interventions. 

“Comprehensive solutions to tackle graduate unemployment will significantly benefit the country’s economy and development,” he said.

Col. Nakalema concluded by emphasising the broader implications of addressing youth unemployment, noting its impact on human security, economic stability, and national development. 

“This is a call to action for all stakeholders to unite and address the seven dimensions of human security, including economic, food, and community security,” she said.

The officials noted that the urgency of creating meaningful opportunities for Uganda’s young professionals remains at the forefront.