Uganda turns to outsourcing as solution to soaring youth unemployment rates

Uganda is turning to the business process outsourcing (BPO) sector as a key solution to its youth unemployment crisis.

With over 75% of its population under the age of 30, Uganda faces a daunting challenge in providing employment opportunities for its young people. The country’s unemployment rate stands at around 9.4%, with youth unemployment rates significantly higher.

However, officials believe that the BPO sector can play a crucial role in absorbing some of this excess labor. The industry, which involves contracting out business operations to third-party providers, has been growing rapidly in recent years, driven by advances in technology and the increasing demand for cost-effective services.

“We’re looking at the BPO sector as a key driver of job creation for our young people,” said Col. Edith Nakalema, head of the State House Investors Protection Unit. “We believe that with the right support and investment, this sector can provide thousands of jobs for Ugandans.”

To achieve this goal, the government is working to create a favorable business environment for BPO companies. This includes investing in digital infrastructure, providing training programs for young people, and offering incentives to attract foreign investment.

“The government needs to put its money where its mouth is,” said Kwesiga Steven, general manager at Exquisite Solution Limited, a Kampala-based outsourcing firm. “We need policies that encourage investment, not stifle it.”

Nakalema acknowledged that the government has a role to play in supporting the sector’s growth. She pointed to the Indian Business Forum’s recent expression of interest in investing in Uganda’s BPO sector as a sign of the industry’s potential.

“Youth unemployment is a ticking time bomb,” Nakalema said. “But with the right support, the BPO sector can help us defuse it.”

Joshua Akandwanaho, BPO and ITES supervisor at the National Information Technology Authority (NITA-U), emphasized the need for young people to acquire the skills required to succeed in the sector.

“Even those who finished senior six can work in BPOs, in areas such as customer care and marketing,” Akandwanaho said.

Grace Labong Achire, from Yako Call Centre, highlighted the importance of mindset change and soft skills in making Uganda competitive in the BPO sector.

“We need to make our young people appreciate that the sector is competitive,” Achire said. “Most of the young people have gone to school, they have degrees, they are trained but not experienced to work with this new technology.”

Rajnish Jain, founder of Yako Bank, revealed that his company is currently working on a project aimed at empowering young people in the ICT sector.

“We are facilitating and building a sector of Knowledge Process Outsourcing,” Jain said.

As Uganda struggles to create jobs for its rapidly expanding youth population, the success of the BPO sector will be closely watched. With the right combination of government support, investment, and innovation, officials believe that outsourcing can become a key driver of economic growth and job creation in the years to come.