Youth advocates call for action on stalled youth Startup Bill

Youth leaders are urging the government to prioritize the long-delayed Youth Startup Bill, which seeks to address systemic challenges hindering young entrepreneurs in Uganda.

The call came during a national engagement organized by the Ngabo Youth Friendly Services Initiative, where Executive Director Sadat Zaga Ziwa underscored the barriers youth face despite existing government programs.

Ziwa pointed out that while initiatives like the Parish Development Model (PDM) and the Presidential Initiative on Skilling the Girl Child provide funding and training, many young entrepreneurs struggle with high taxes, limited capital, and bureaucratic red tape.

“Young people receive startup funds, but by the time they navigate taxes and permits, the money is gone. We need to address these silent, unspoken challenges,” Ziwa stated.

The Youth Startup Bill, initially tabled as a private member's bill by Boniface Okot, proposes solutions such as tax relief, affordable financing, and support for innovative ventures.

Despite initial interest from the Minister of Trade and the President last year, the bill has stalled.

Advocates argue its implementation is critical for youth entrepreneurship.

“Young innovators with ideas that could employ thousands are sidelined due to a lack of financial services and access to land,” Ziwa added.

The event, supported by Plan International and the Safe and Inclusive Cities Project, brought together youth leaders, members of the Parliamentary Forum on Refugee and Internally Displaced Persons, and other stakeholders.

Participants emphasised the need for Parliament to expedite the bill's reading and implementation.

“Youth voices are crucial,” Ziwa concluded. “We need policies that create real, sustainable change for the next generation.”

Claire Dorothy Nabuko, a youth advocate and member of the Youth Advisory Board under the Safe and Inclusive Project, highlighted the struggles young entrepreneurs face, including high taxes, licenses, and the inability to sustain government-funded businesses.

“Youth start businesses, but they do not even last a year,” Nabuko stated, adding that the high costs of taxes and licenses consume much of the limited capital they receive.

“For instance, if someone gets Shs 1 million under PDM, they might spend Shs 250,000 on an annual license. This leaves little to invest in the business, making it hard to sustain operations,” she explained.

Nabuko stressed the need for financial literacy training and mindset transformation to ensure sustainability.

“Youth should be trained in financial management and how to grow a business over time. Transformation requires capital and the right mindset,” she noted.

She also urged policymakers to reduce taxes and license fees for youth-led businesses and expand access to capacity-building programs.

“Reducing taxes and license costs would support young entrepreneurs significantly. Mentorship and ongoing training would ensure government-funded businesses remain viable and impactful,” Nabuko said.

Meanwhile, Ismail Saxafi, the team leader of the Aider Refugee Initiative, has called on the government to include refugees in national development initiatives.

While Uganda is globally recognized for hosting over 1.7 million refugees, Saxafi noted that programs like the Parish Development Model (PDM) exclude this vulnerable group.

"Uganda is a great host country for refugees, but most programs are exclusive. Refugees are not included. We are calling on the government to consider us in their future plans,” Saxafi stated.

He emphasized that refugees, who often lack alternative support systems, should benefit from such programs to build self-reliance.

“Our people have skills and want to do business, but programs like PDM exclude us. Refugees are part of the community and should be included,” he said.

Saxafi proposed adopting a resource allocation model similar to humanitarian aid, where 70% of resources go to refugees and 30% to host communities.

“When planning initiatives, the government should think about refugees. They deserve a share of these opportunities,” he added.