Uganda bets on BPO to solve youth unemployment

KAMPALA, UGANDA — Uganda is placing its hopes on the business process outsourcing (BPO) industry to address its escalating youth unemployment crisis.
With over 75% of its population under 30, the country faces immense pressure to create jobs for its growing youth demographic. While the national unemployment rate hovers at 9.4%, youth unemployment is significantly higher, threatening economic and social stability.
“We’re looking at the BPO sector as a key driver of job creation for our young people,” said 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.”
Government initiatives to boost outsourcing sector
To capitalize on the potential of BPO, the Ugandan government launched several initiatives aimed at fostering a conducive business environment. These include investments in digital infrastructure, training programs tailored to young people, and incentives designed to attract foreign investors.
“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.”
Recent interest from the Indian Business Forum in Uganda’s BPO sector underscores its growth potential. Rajnish Jain, founder of Yako Bank, announced plans to empower Ugandan youth through knowledge process outsourcing (KPO) projects focused on ICT skills development.
Skills training and mindset shift
Experts stress that equipping young people with relevant skills is critical for success in this competitive global market.
According to Joshua Akandwanaho from the National Information Technology Authority (NITA-U), even those with basic education can find opportunities in customer care and marketing roles within BPOs.
Grace Labong Achire from Yako Call Centre highlighted the importance of soft skills and adaptability: “Most of the young people have gone to school, they have degrees, they are trained but not experienced to work with this new technology.”
She emphasized the need for a mindset shift among Ugandan youth to embrace the competitive nature of the sector.
Outsourcing holds promise for economic growth
As Uganda grapples with its youth unemployment crisis, stakeholders believe that BPO could become a cornerstone of economic growth and job creation.
With coordinated efforts from government, private sector players, and international partners, officials are optimistic that outsourcing will help transform Uganda’s labor market and economy in the years ahead.