Is the Youth Fund a Magical Solution to Unemployment?

business funding 2

The unemployment rate in Uganda stands at about 6.2%. In a study by Action Aid International Uganda,

  • Uganda has the youngest population in the world at 83%.
  • 62% of Uganda’s youth are jobless, majority of whom were in urban centers.
  • 12% of all youth in Uganda 12-30 are chronically poor
  • Higher poverty rates among 12-17 years olds as compared to the 18-30 years old.

The Government of Uganda has set aside over Shs 250bn

  • To support the growth of businesses owned by the youths aged 18 and 35
  • To improve competitiveness of the business environment to enable the private sector to play a dominant role for job creation, this will be enforced by vocational training.
  • To support viable and sustainable small and medium-sized enterprises across the country because they comprise over 90% of the private sector. They contribute to employment creation, provision of basic goods and services and the generation of tax revenues.

Every year, universities in Uganda continue to pass out over 300,000 graduates to the job market but very few can be absorbed into formal employment.

Uganda’s youth population to double

Facts on Uganda’s populations – US Population Reference Bureau (PRB) 2013

  • Youth aged [10 to 24] in Uganda expected to more than double to 29.5 million from the current [12.3 million or 33%] of the country’s population by 2050.
  • 26% of girls and 30% of boys are enrolled in secondary schools
  • Only 4% of girls and 5% of boys were enrolled in tertiary institutions between 2005 and 2011.
  • Wide income gaps exist between the poor and rich and these gaps in wealth and income are associated with differences in fertility and health.
  • 13% of the [15- 19] year old adolescents were using contraception between 2005 and 2011 while 20% of those aged [20- 24] used contraception.
  • Half of the youth aged [20-24] in Uganda are married by 18 years.

Out of every 1000 adolescent girls aged [15 -19] years 124 have had children, thus failure to complete education, gender based violence, poor health and poverty cycles.