Uganda unlocks potential of young entrepreneurs

By Godfrey Olukya

KAMPALA, Uganda (AA) – Although it is one of the world’s poorest countries, Uganda has been topping the list of the globe’s most entrepreneurial nations, according to the Global Entrepreneurship Monitor (GEM).

As many as 28% of Uganda’s population of nearly 46 million can be seen on the streets doing all sorts of business, from selling roasted maize and cutting women’s nails to driving the local motorcycle taxis called bodaboda.

Speaking to Anadolu Agency on the occasion of Entrepreneurship Week being observed on March 1-7, Andrew Kasigwa, 29, who sells pancakes in Wandegeya, a locality near Uganda’s capital Kampala, said the idea to make and sell cakes came to him as jobs were scarce after his education.

Similarly, Felix Kigundu has been driving a bodaboda for the past four years since he graduated from Makerere University in social science.

“I looked for jobs for some time from office to office but couldn’t get one. In 2017, I decided to start working as a bodaboda operator,” he said.

He said that on average he earns at least 50,000 Uganda shillings ($14.9) a day. With that income, he has been able to build a house and also ably provide for his family.

According to Simon Agume, program manager at the Uganda Women Entrepreneurs Association (UWEA), said Ugandans are very innovative in setting up businesses, but few of them grow larger.

She said that her organization has so far helped 2.5 million women set up startups.

“Over 2 million Ugandans are involved in bodaboda transport all over the country,” said Alex Onyango, an official at the Transport Ministry.

He said that most of the youth who drive motorcycle taxis get them through loans although some work for their bosses and are paid according to what they have earned per day.

- Survival of startups an issue

One of the young men, Keneth Ssamanya, who initially got a motorcycle on loan but now owns three of them, said there is a lot of money in the transport sector and that is why over 2 million people are involved in motorcycle taxi operations.

Despite a host of startups, not all of them survive and many die within a couple of years.

According to economist Josua Mukwana, most of the businesses collapse because those who start them fail to do feasibility studies.

Mentioning the thousands of clothing boutiques started up by young women all over the country, he said many young women who invest in this trade forget that the clothes business in Uganda is seasonal.

“Most people buy clothes during Christmas. So, they ended up failing,” he said.

However, the government is working to support entrepreneurs in the country.

Last month, Ugandan President Yoweri Museveni launched an anti-poverty campaign in which 100 million shillings ($27,196) will be given to every parish – a small administrative unit of two to three villages – every year to allow them to help youth to organize themselves and start businesses.