The concern about youth unemployment is a real problem, however, it is true that many these youth are not as desperate as their brothers and sisters who cannot complete studies due to the cost of fees. It is true that anybody with some viable project can enter the gates of a micro-finance and get money to do some business, but we have the poor students, like those who are due to enter higher institutions of learning and there is no facility at all to cater for their fees. To me I think this is wrong on part of Government. Many of the graduates can do anything for a living for the time being with the hope that when the employment climate improves they will get absorbed, but imagine those who are stopping on the way due to fees problem which is clear given that majority of Ugandans get peanuts compared to the cost of studying. My humble appeal to the Government is to see that there is a scheme immediately in place to cater for these students who are failing to continue studies. There is no excuse at all why this cannot be implemented.
Secondly, why do we see DFCU as the only mentioned bank in this deal?
William Kituuka Kiwanuka
EXTRACT FROM 2011/12 UGANDA BUDGET
Limited Employment Opportunities
80. Madam Speaker, another challenge facing the economy is rising unemployment. It is estimated that the current job market can only absorb 20 percent of the youth. Fortunately, the youth are highly adaptable and only require attitudinal transformation, together with technical and business management skills to fit into the existing job market and create avenues for generating their own small scale enterprises.
81. Madam Speaker, what I have just highlighted above, are key challenges facing the economy. The Budget strategy and the priority interventions which I am going to elaborate will therefore focus on addressing these challenges, commencing next financial year.
Job Creation and Employment Strategy
107. Madam Speaker, as a first step to address employment challenges, I have allocated Shs. 44.5 billion towards creating jobs in the next financial year. The following interventions shall be implemented:-
i. A Youth Entrepreneurship Venture Capital Fund will be established together with the DFCU Bank, for which I am proposing an allocation of Shs. 25 billion. This will be used to support youth starting or expanding their business enterprises. The loan sizes will range between Shs 100,000 to Shs 5 million or 20% of injected equity for youth group investments.
ii. Enterprise Uganda, shall undertake Youth Entrepreneurial Training Programme to instill business management skills among the youth, to enable them join the job market or create their own enterprises. I have allocated a total of Shs 3.5 billion for this purpose.
iii. Enterprise Uganda shall also undertake Business Development Skills clinics in collaboration with the private sector and Uganda Small Scale Industries Association (USSIA), with special focus on imparting technical skills to youth, using non-formal vocational training programmes. I have allocated an additional Shs. 1 billion specifically for this purpose.
iv. Dedicated work spaces will be established in markets starting in Kampala, in which youth and other small scale manufacturers under the Job Stimulus programme will undertake manufacturing and other processing activity. I am proposing to allocate Shs 16.5 billion for this purpose.
108. Madam Speaker, the implementation of these measures will be closely monitored and fine tuned to achieve the required outcome of increased employment.
Uganda youth MP hails government on 2010/11 budget
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The Northern Uganda Youth Member of Parliament, Dennis Obua has hailed the Uganda 2010/11 budget for allocating funds to fund school leavers saying it will help reduce the problem of unemployment.
MP Dennis Obua
MP Dennis Obua
The Uganda Minister of Finance, Planning and Economic development, Hon. Syda Bumba while reading the Uganda 2010/11 Uganda budget at Kampala Serena Hotel indicated that government has allocated money to fund school leavers to help in training and provide capital to start businesses.
The minister indicated that the government has already allocated 4 billion Uganda shillings for the loan scheme to graduates and Uganda shillings 2 billion to pay companies train graduates.
Bbumba said the fund to be managed by Uganda Directorate of industrial training will also help graduates set up businesses and train graduates to prepare them for job market.
Obua says the initiative is a good way to help Uganda youth become self reliant since it will help them get through the job market and promote the culture of entrepreneurship.
According to a 2008 World Bank report, Uganda has the highest youth unemployment rate and the youngest population in the world.