KAMPALA, December 5, 2025 —Uganda’s economy has largely bounced back from the effects of the COVID-19 pandemic, but challenges remain, particularly in employment and entrepreneurship, according to Prof. Augustus Nuwagaba, Deputy Governor of the Bank of Uganda.
He made the remarks recently via his X [formerly Twitter] handle.
“While Uganda’s economic recovery is on track, the impacts on employment and businesses, especially in the informal sector, are yet to be fully addressed,” Nuwagaba said.
He added, “Many businesses are slowly recovering, and we must focus on creating opportunities that allow our young people to contribute meaningfully to economic growth.”
Uganda remains a youthful nation, with the 2024 Uganda Bureau of Statistics [UBOS] census report indicating that three-quarters of the population is under 30 years of age. This presents both a challenge and an opportunity for economic transformation.
“The youth are eager to play a role in driving the economy, but they often face barriers in accessing capital, acquiring relevant skills, and reaching markets. It is essential that we bridge this gap to empower them as key contributors to Uganda’s development,” Nuwagaba noted.
He highlighted the growing gig economy as a potential avenue for youth employment.
“The gig economy in Uganda has grown substantially, thanks to digital connectivity and the demand for flexible work. While it may not be a perfect solution, it offers young people alternatives to traditional employment. However, we must ensure fair pay and protection for gig workers,” he added.
Nuwagaba also emphasised entrepreneurship as a critical driver for job creation and innovation.
He added, “Entrepreneurship is the backbone of job creation and innovation. It diversifies the economy and reduces reliance on a single industry, providing sustainable pathways for growth and resilience.”
Government initiatives have begun addressing these challenges. In 2022, the Small Business Recovery Fund was introduced to facilitate access to finance for 50,000 micro and small enterprises, with at least 40 percent women and 30 percent youth benefiting.
Programs such as the Generating Growth Opportunities and Productivity for Women Enterprises [GROW] and Investment for Industrial Transformation and Employment [INVITE] have further supported entrepreneurs and created thousands of jobs.
“By working together, the government and private sector can build a thriving ecosystem for employment and entrepreneurship. This will not only empower our youth but also transform the economy for long-term prosperity,” Nuwagaba noted.
https://thecooperator.news/youth-led-vsla-commends-govt-for-availing-affordable-finance/
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