Uganda’s population continues to grow at one of the fastest rates in Africa, crossing the 45.9 million marks with nearly 78 percent under the age of 30.
On paper, this looks like a tremendous opportunity a young, energetic generation capable of driving economic transformation.
But in reality, Uganda’s largest population segment remains trapped in a cycle of poverty and unproductivity, struggling to meet even the most basic physiological needs of food, shelter, and health. This condition, worsened by high youth unemployment, a weak education system, corruption, and injustice, has left the country’s development dream hanging by a thread.
Every year, thousands of young Ugandans graduate from universities with degrees and certificates, yet most face an uncertain future. With few industries and limited investment in job creation, many find themselves unemployed, underemployed, or dependent on small informal ventures that barely sustain daily life.
The Uganda Bureau of Statistics estimates youth unemployment at over 60 percent, but the figure feels even higher when one walks through Kampala’s suburbs or rural towns, where able-bodied youth spend entire days idle, waiting for opportunities that never come.
This unproductivity is not just a social challenge; it is an economic crisis in slow motion. A country where the majority earn little or nothing inevitably struggles to generate sufficient tax revenue. Out of a population of over 45.9 million, the Uganda Revenue Authority records indicate 4.4 million registered active tax payers barely 8.71 percent of the population. This narrow tax base forces the government to rely heavily on external borrowing to fund even the most basic services. When citizens do not produce enough, they cannot pay enough taxes. And when incomes remain low, even the middle class turns to loans for survival.
The explosion of small-scale borrowing through telecom platforms such as MTN MoMo, Airtel Money, and other digital lenders shows the depth of the struggle. According to Bank of Uganda reports, Ugandans now borrow hundreds of billions of shillings every month from micro-loan programs, often at high interest rates, according to the recently published report within 12 months the loan disbursements shifted from UGX 1.66 trillion to UGX 3.5 trillion, most of the small loans taken to pay rent, school fees, or buy food. These loans rarely go into investment; instead, they reflect a desperate attempt to stay afloat in a tough economy.
What was meant to boost financial inclusion has, in many cases, become a trap of debt for millions of low-income earners.
Part of this crisis begins in Uganda’s education system, which has long emphasized academic success over practical skills. Universal Primary and Secondary Education opened access but weakened quality. Overcrowded classrooms, underpaid teachers, and outdated curricula have turned learning into a ritual of exams rather than skills acquisition.
Graduates often leave school without technical or entrepreneurial abilities, joining the long queue of job seekers in an economy that values creativity and innovation. Education, which should be a ladder out of poverty, has instead become a path to disappointment.
Corruption and systemic injustice have deepened this paralysis. Billions of shillings meant for youth projects, health care, and education are often lost through embezzlement, ghost beneficiaries, or politically motivated programs.
The perception that connections, not competence, determine success has eroded public morale. When young people see that loyalty pays more than hard work, productivity declines. A nation cannot prosper where honesty is unrewarded and opportunity depends on who you know.
Meanwhile, millions of Ugandans remain caught in the daily fight for survival. Many families live on less than $2.15 (equivalent to UGX 7,505.86) a day according to the national Survey 2023/2024 carried out by Uganda Bureau of Statistics (UBOS), while prices of food, rent, and transport continue to rise.
In Maslow’s hierarchy of needs, physiological and safety needs form the foundation of human motivation yet in Uganda, a majority are still stuck at that bottom level. It is hard to expect innovation or national growth when citizens are preoccupied with their next meal.
With hope the youthful population, if empowered with skills, integrity, and access to genuine opportunities, can become the engine of transformation. The government can widen its tax base by investing in industries that create decent work, reforming education to emphasize innovation, and tackling corruption decisively. Private enterprises, too, must see youth not as job seekers but as potential creators.
With honest leadership, skill development, and fair systems, Uganda’s young majority can rise from survival to productivity from borrowers to builders of the nation’s future.
Uganda’s greatest wealth to start with are the people who remains untapped caught in the daily struggle for basic needs. But if the country chooses the path of good governance, constitutional reform backed by accountable Leaders, investment, and integrity, the same population that today survives on hope could tomorrow power Uganda’s prosperity.
The author, is a Social Development specialist and CEO Bridge Your Mind Centre
Email; bwani.jose@gmail.com
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