In the latest economic update report for Uganda launched today, the international lender said Uganda’s level of per capita income – that is money earned by each individual per year– was, by 2018, still behind its neighbors.
The World Bank has said Uganda should ask hard questions on why
the country is growing but not creating enough jobs and people incomes remain
In the Economic update for Uganda launched on Thursday, the international
lender said Uganda’s level of per capita income – that is money earned by each
individual per year– was, by 2018, still behind its neighbours.
The report notes that progress against poverty remains fragile, especially in
This is even when industry sector has grown its contribution to Uganda’s
economy to at least 30% from just 22%. Services sector’s contribution fell to
below 50% while agriculture rose slightly.
Richard Walker, the chief economist for World Banke Uganda, said
industry where the manufacturing of different goods fall, is supposed to
produce more quality jobs but it looks like it is not the case for Uganda.
//Cue in: “On the jobs…
Cue out: … livelihood”//
The report indicated that with higher population growth expected over the
next 10 years, low productivity and a failure to shift to higher productivity
activities that are resilient to shocks and can generate and sustain high
growth rates means more Ugandans will remain poor.
Uganda also needs to create about 660,000 new jobs per year to cater for
the young people leaving the education system.
The country will need at least 1 million jobs each year in 2030, the
World Bank Uganda country director Antony Thompson said.
Currently, Uganda can only create 75, 000 new jobs each year, according to the
2020/21 financial year budget strategy. This is far below what is needed.
Walker also said it is possible that sub-sectors like construction are creating
poor quality jobs where people are paid peanuts and they can’t improve their
The report says that manufacturing sub-sector, which also falls under industry,
was dominated by processed and preserved meat, grain mill and starch products,