Uganda’s ICT Sector Grows, Tackles Youth Unemployment: A Vision for a Digitally Empowered Future

In her opening address at the 2nd Annual National ICT Job Fair 2023 held at Kololo Independence Ground, Dr. Amina Zawedde, the Permanent Secretary of the Ministry of ICT and National Guidance, extended her sincere appreciation to His Excellency President Yoweri Kaguta Museveni for his presence at the event.

“Mr. President, your attendance underscores your unwavering dedication to our nation’s future and the youth of Uganda. Your support and encouragement serve as a guiding beacon as we continue on the path toward a brighter, digitally empowered Uganda,” she stated.

Zawedde went on to disclose that the ICT sector in Uganda has consistently experienced an impressive average growth rate of 14.8 percent.

“It’s noteworthy to recognize that the ICT sector contributed 2.0% to the total nominal GDP in the fiscal year 2021/22, indicating a rise in its value. In nominal terms, the value added by the ICT sector increased from UGX 2.79 trillion in FY2019/20 to UGX 2.93 trillion in FY2020/21,” Zawedde emphasized.

The ICT sector focuses on a matter of paramount significance – the future of the youth and their role in addressing the challenges of unemployment.

Zawedde revealed that Uganda presently boasts 32 universities, accommodating approximately 110,000 students. These institutions collectively graduate over 30,000 students each year. Additionally, she reiterated the impressive 14.8 percent growth rate in ICT services in Uganda.

“It is essential to acknowledge that the ICT sector contributed 2.0% to the total nominal GDP in FY2021/22, reflecting a rise in value. The ICT sector’s nominal value added increased to UGX 2.93 trillion in FY2020/21 from UGX 2.79 trillion in FY2019/20,” stated Zawedde.

Zawedde pointed out that the most recent National Labour Force Survey highlights a concerning statistic: 92% of employees engage in informal employment, including agriculture, which means they are working to sustain themselves and their families rather than contributing to the broader economy. Furthermore, a staggering 95% of enterprises in Uganda are not registered with the Uganda Registration Services Bureau (URSB), and 75% fail to maintain proper financial records.

“To realize the ambitious goals outlined in the National Development Plan III (NDPIII), which focuses on increasing average household incomes and enhancing the quality of life for all Ugandans, we must confront these challenges head-on. The National Labour Force Survey also reveals that 42.9% of employed individuals possess the required education for their jobs, while 46.1% are underqualified for their positions,” Zawedde emphasized.

This underscores the significance of job-relevant skills, particularly in sectors like ICT. Moreover, a substantial portion of Uganda’s youth, approximately 66%, resides in rural areas, with 47% having attained only primary education. Nonetheless, 83% of them have access to ICT equipment such as radios, telephones, and tablets, according to PS Zawedde.

However, she highlighted the unfortunate reality that 97% of the youth primarily use ICT for social networking, with only 32% utilizing it for academic purposes and a mere 10% exploring online job opportunities.

“We must acknowledge that a significant number of our youth are grappling with unemployment, and instead of merely debating statistics, we should focus on our efforts to help them overcome this challenge,” Zawedde urged. She stressed that the ICT sector is dedicated to addressing these pressing issues through strategic initiatives like Business Process Outsourcing (BPO) and the National Skilling Program, with the aim of equipping youth with the skills needed for the present and the future.

She further elaborated that the National BPO Policy represents a significant step in this direction.

“This policy aims to leverage ICT-enabled innovative solutions to optimize labor utilization, enhance efficiency, and promote the BPO industry for sustainable development. In our pursuit of this policy’s development, we aspire to create employment opportunities, increase workplace efficiency, and tap into the global Information Technology Enabled Services (ITES) outsourcing business by 2040,” Zawedde concluded.