We must create decent jobs for our youth, says Kasaija 

Finance Minister Matia Kasaija has said government, through  the ten-fold growth agenda, must create decent jobs for youth to address the growing threat of unemployment.

While speaking at the public investment management conference at Makerere University in Kampala, Mr Kasaija said growing the economy ten-fold from a gross domestic product of $50b to $500b within the next 15 years requires a combination of factors, of which creating employment for youth is key.

"Achieving this milestone [growing the economy tenfold from a GDP of $50b to $500b within the next 15 years] requires not only precise planning and implementation of investments but also a focused approach to addressing the pressing issue of youth unemployment by creating decent jobs," he said, noting that there was need to prioritise the expansion of vocational and technical training programmes that collaborate closely with industries to ensure alignment with market demand.

He also indicated that it was important for all stakeholders to assess public investments and chart a course for the future that will drive economic growth and national development to achieve the tenfold growth agenda. 

At the close of last month, the Ministry of Finance published the Externally Funded Projects report, in which it found that most projects, especially those funded by borrowed money, were performing poorly.

Mr Kasaija underscored the need for an effective public investment management system, noting that it must have the ability to deliver inclusive and sustainable socio-economic transformation with in-built resilience to cross-cutting issues.

The Ministry of Finance permanent Secretary and secretary to the Treasury Ramathan Ggoobi, said that as a result of the need to mitigate the culture of poor project implementation, the Ministry of Finance had created the Office of the Head of Project Execution, which would track project implementation under a newly created framework that would standardise and provide strategic direction by facilitating a culture of accountability, transparency and continuous improvement during project implementation.

"Government is taking seriously the [public investment management]," he said, noting that public investments must not only be financially viable, with returns on investment, but should also lead to improvement of the welfare of Ugandans.

Earlier, Mr Ggoobi, in the Externally Funded Projects report had warned accounting officers to ensure that projects under their ministries, departments, and agencies are executed within set timelines, failure of which they will be held liable for cost delays.

In the report, Mr Ggoobi said that whereas government had over the years mobilised resources both domestically and externally to fund social and economic infrastructure, projects are often delayed and poorly implemented, resulting in a substantial loss of taxpayers’ money on loan-funded projects, yet commitment fees are paid upfront.

“Accounting officers will henceforth, be personally liable for the cost of delays in project implementation … as we commence the journey towards a ten-fold growth of our economy, the performance of projects in various votes will be a performance measure for renewal of contracts for accounting officers,” he said.

During the public investment management conference, Prof Glenn Jenkins from Queen’s University, Canada, who was the keynote speaker, said although Uganda had made significant progress in the development of the public investment management system, project implementation challenges must be addressed. 

"Projects are not being completed on time. Time and cost overruns," he said, noting that there was need for training in project management and a legal framework to support a modern public investment management system that is more than an investment appraisal.

Africa must invest in demand-driven skills 

The World Bank has said it is imperative that African governments equip youth with skills that are relevant to the current labor markets, which is more pressing today than ever before. 

In its Africa’s Pulse report noted that countries across Africa have set ambitious goals for economic growth and poverty reduction, goals that are achievable only by fully utilizing their human capital potential.

Therefore, the report noted, the educational and human capital investments countries make early early childhood and basic education must be complemented with investments in relevant and higher-order skills.

“Megatrends such as digitalisation, automation, and adaptation to climate change, which are reshaping the nature of work dramatically, are adding to the urgency of the skills development agenda. These trends present both opportunities and challenges. Countries’ effectiveness in developing and utilizing skills will determine their ability to navigate challenges,” the report reads.

The World Bank also noted that currently, Africa’s growth is hampered by a skills deficit, worsened by the migration of highly skilled professionals to countries with higher earnings potential due to a lack of decent economic opportunities, especially for youth.

“Youth unemployment rate is high at 47.5 percent in southern Africa … 7.2 percent in eastern Africa and 5.2 percent in western Africa. Youth in the region are primarily engaged in low-productivity informal work, with informal employment accounting for about 95 percent of employment among youth ages 15-24,” the report notes.

Dr Andrew Dabalen, the World Bank chief economist for Africa, said that whereas governments across the continent are making strides in stabilising their finances and closing budget gaps, high debt burdens are limiting investments in critical areas such as education, health, and infrastructure, which are essential for long-term growth.

Therefore, he said, as a way forward youth will need to be well educated and appropriately skilled to access better jobs and take advantage of new digital and green economy opportunities. 

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