Uganda bets on BPO to solve youth unemployment

With over 75% of its population under 30, Uganda is grappling with a youth unemployment crisis. The country’s unemployment rate hovers around 9.4%, but the figures are significantly higher among young people, creating an urgent need for solutions.

The Business Process Outsourcing (BPO) sector is emerging as a beacon of hope. Driven by technological advances and the demand for cost-effective services, BPO is being touted as a key driver for job creation in Uganda.

“We see the BPO sector as a cornerstone of employment for our youth,” stated Col. Edith Nakalema, head of the State House Investors Protection Unit. “With the right investments and support, this industry has the potential to create thousands of jobs for Ugandans.”

To make this vision a reality, the government is focusing on improving the business environment for BPO companies. Efforts include investing in digital infrastructure, offering youth training programs, and providing incentives to attract foreign investors.

However, industry players stress the need for action over promises. “The government needs to back its words with tangible support,” said Kwesiga Steven, general manager at Exquisite Solution Limited. “Policies should foster investment rather than hinder it.”

Uganda has already begun to attract international interest, with the Indian Business Forum expressing its intention to invest in the country’s BPO sector. Officials remain optimistic about the industry’s ability to alleviate unemployment.

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

For the sector to thrive, skill development remains essential. “Even those who’ve only completed senior six can find roles in customer care and marketing within BPOs,” said Joshua Akandwanaho, BPO and ITES supervisor at the National Information Technology Authority (NITA-U).

Grace Labong Achire from Yako Call Centre underscored the importance of soft skills and a competitive mindset to make Uganda stand out in the global outsourcing market. “We need to shift the mindset of our young people. Many have degrees but lack the experience to adapt to this new technological landscape,” she noted.

Additionally, private sector players like Rajnish Jain, founder of Yako Bank, are contributing to the cause. “We’re building a Knowledge Process Outsourcing sector to empower young people in ICT,” Jain revealed.

As Uganda races to create job opportunities for its growing youth population, the BPO sector stands out as a promising solution. With a collaborative approach between the government, private sector, and investors, outsourcing could become a powerful engine for economic growth and youth employment in the years ahead.