Bank of Uganda Deputy Governor Prof. Augustus Nuwagaba has warned that Uganda’s economic transformation could stall unless urgent measures are taken to harness the potential of its young population, which accounts for more than three-quarters of the country’s citizens.
In a statement titled “Investing in the Ugandan Youth as Assets for Accelerating Uganda’s Economic Transformation,” Prof Nuwagaba said Uganda’s demographic structure is both an opportunity and a risk if youth remain excluded from economic participation.
“Three-quarters of Ugandans are under 30 years of age,” he noted, citing the 2024 Uganda Bureau of Statistics census.
“It is positive that young people are eager to contribute to economic growth, but many face challenges in accessing capital, skills, and markets.”
He warned that failing to integrate young Ugandans into the economy could undermine recovery efforts, despite improvements in macroeconomic indicators.
“Uganda’s economy has largely recovered from COVID-19; however, employment and economic impacts have not been fully restored. Many businesses, particularly in the informal sector, are slowly recovering,” he said.
Prof. Nuwagaba identified three key areas to convert Uganda’s youthful population into a productive force.
He highlighted the rapid growth of digital work, noting that the gig economy offers opportunities but also requires protections for fair pay and decent working conditions.
He emphasised entrepreneurship as the primary pathway to job creation and innovation, arguing that strengthening enterprises would diversify the economy and shield it from sector-specific shocks.
The Deputy Governor cited government initiatives such as the Small Business Recovery Fund, launched in 2022 to support 50,000 micro and small enterprises, with 40 percent led by women and 30 percent by youth. Programs like GROW and INVITE, he said, have already helped create thousands of jobs.
Nuwagaba called for stronger coordination between government, private sector actors, and development partners to build an economy capable of absorbing the country’s growing labour force.
“Together, we can create a thriving ecosystem for employment and entrepreneurship, transforming the economy for long-term prosperity,” he said.
