Uganda’s economy is steadily recovering from the shockwaves of COVID-19, but the journey to full economic and employment restoration remains incomplete, according to the Deputy Governor of the Bank of Uganda, Nuwagaba Augustus.
Nuwagaba noted that although overall economic activity has stabilised, many businesses—particularly in the informal sector—continue to struggle.
“Uganda's economy has largely recovered from the effects of COVID-19; however, the economic and employment impacts have not been completely restored,” he said.
He added that “many businesses, especially in the informal sector, are still on a slow path to recovery.”
Uganda’s demographic makeup presents both opportunity and risk. According to the 2024 Uganda Bureau of Statistics (UBOS) census, three-quarters of Ugandans are under 30. This youthful majority is eager to work and innovate, but systemic challenges often hold them back.
“Three-quarters of Ugandans are under the age of 30. Our young people are eager to contribute to economic growth, but they continue to face challenges in accessing capital, skills, and markets,” the Deputy Governor explained.
He raised a critical question: How can Uganda bridge this gap and empower the youth to drive economic transformation?
Nuwagaba pointed to the growing role of digital and gig-based work in Uganda’s employment landscape.
“The gig economy has grown substantially as young people search for flexible work opportunities,” he noted, attributing the trend to rising digital connectivity and limited traditional job options.
However, he cautioned that “we must ensure fair pay for gig workers” if the sector is to offer meaningful, sustainable livelihoods.
The Deputy Governor emphasised that entrepreneurship remains one of the strongest pathways to job creation and innovation.
“Entrepreneurship is the backbone of job creation and the primary engine of innovation for building a more resilient economy,” he stated.
By enabling young entrepreneurs to start and scale businesses, Uganda can diversify its economy and shield it from external shocks.
Nuwagaba highlighted government interventions aimed at reviving small and medium enterprises. Chief among them is the Small Business Recovery Fund, introduced in 2022 to provide direct financing to 50,000 micro and small enterprises—40% of which are owned by women and 30% by youth.
“The Small Business Recovery Fund and other initiatives such as GROW and INVITE have supported entrepreneurs and created thousands of jobs,” he said.
These programmes, he added, demonstrate the government’s commitment to strengthening local enterprises while positioning the youth as a key engine of economic resurgence.
While applauding ongoing efforts, Nuwagaba stressed that meaningful transformation requires collaboration between the state and private sector.
“Together, we can create a thriving ecosystem for employment and entrepreneurship,” he said.
He further underscored the long-term vision: “We can transform and create a dynamic system where entrepreneurship thrives, and the overall economy transforms for long-term prosperity.”