David Muwanga

KAMPALA, UGANDA - The Uganda government has responded to an appeal by the International Labour Organisation (ILO) to the governments in East, Central and Southern Africa to give priority to employment creation especially for the youths.



This follows an announcement by Ugandan President Yoweri Museveni that the government will create a fund for graduates who fail to get jobs to access loans and start income generating activities as part of tackling youth unemployment.



The youths especially those with degrees, will have an opportunity to access loans to invest in business or initiate income generating projects.



“The graduates, especially those holding degrees, will have an arrangement for their own ntandikwa (capital). We can handle the others, including those with certificates later, but for those who have acquired degrees and have failed to get jobs, government will ensure that they access loans with small interest or interest free loans that they can use and later pay back,” he said.



The President made the announcement while addressing residents of Kalongo Sub-County in Nakasongola district in central Uganda.



Last week Uganda hosted the East, Central and Southern Africa Employers Conference during which an official of the ILO urged the regional governments to develop policies aimed at creating jobs for their citizens.



“Lack of such policies has resulted into increasing numbers of unemployed people especially the youth, the ILO Director for East Africa based in Dar Es Salaam Alexio Musindo said.



The number of jobless worldwide reached nearly 212 million in 2009 following an unprecedented increase of 34 million compared to 2007, the ILO said in its annual Global Employment Trends report for January 2010.



Based on IMF forecasts, ILO estimates that global unemployment is likely to remain high this year.



In the developed economies and EU, unemployment is projected to increase by 3 million people in 2010, while it will decline in other regions.



The ILO also said the number of unemployed youth worldwide increased by 10.2 million in 2009 compared to 2007, the largest hike since 1991.



In sub-Saharan Africa, the unemployment rate is estimated to have risen to 8.2% in 2009 and is likely to show very little change between 2009 and 2010.



“That is why governments in East, Central and Southern Africa should support employer’s organization to create dialogue on how the governments can create jobs,” Musindo said.



“The President is concerned about the choices that students make for their careers and advised them to follow the career guidance guidelines issued by the Ministry of Education and Sports regarding the country’s job markets.



Uganda’s Ministry of Education and Sports has identified an urgent need to raise the status of work-based skills and to increase student and instructor awareness of quality job practices, attitudes and employability skills, according to a statement from State House.



Through the Business, Technical, Vocational Education and Training Department (BTVET), the Ministry has developed curricular that are skills based and its activities cut across Primary, Secondary and Tertiary levels of education.



The President’s decision will come as a great relief to thousands of parents who have invested heavily in the education of their children but were increasingly getting frustrated with the small job markets. It will also promote a change in attitude of many young graduates as job creators other than job seekers.



Federation of Uganda Employers (FUE) Executive Director Rosemary Ssenabulya however said there plans to establish an employer’s body at the EAC level.



“We need to represent interests of the employers, that is why we should utilise the integration process in the EAC to come together,” she said.



Uganda’s Minister for Gender, Labour and Social Development Gabriel Opio proposed that encouragement of investors in the region would reduce unemployment.“We have incentives and investment opportunities in agro-processing, forestry,

infrastructure, publishing, education, ICT. We need to attract more investors who will create jobs for the youths,” he said.



He said an EAC Common Market in the EAC will improve the terms of trade.