Ugandans point to cost of living, unemployment as major concerns, survey finds

Ugandans are increasingly concerned about the rising cost of living, with nearly six out of ten citizens naming inflation as one of the country’s most pressing issues, a survey reveals. The national mobile phone panel survey, Sauti za Wananchi, conducted by Twaweza, sheds light on public opinion about the country’s economic challenges, poverty, and citizens’ priorities.

Economic Strain Dominates Concerns

The survey, which gathered data from across Uganda in early 2023, found that the cost of living tops the list of challenges facing both the nation and households. More than 60% of respondents said inflation was one of the top three issues confronting the country, while 62% cited it as a key problem within their own homes.

“For the last few years, things have just been getting harder,” said Janet Nabirye, a 38-year-old mother of four in Kisozi Buddo. “We cannot afford basic things like food and school fees, and prices are always going up. It’s a daily struggle.”

The survey also highlighted growing concerns over unemployment, with 48% of citizens naming it among the top three national issues, and 45% saying it was a major concern for their households. Hunger and drought were also significant issues, with 37% of citizens pointing to food insecurity as a national challenge and 42% reporting it as a household concern.

“I lost my job last year, and since then, things have been tough. I’ve been looking for work, but the opportunities are limited,” said Moses Kagimu, 45, a resident of Kasenge. “It’s not just me; many people I know are in the same situation. It feels like there’s no way out.”

Other challenges identified by respondents included inadequate health services (29%), widespread corruption (25%), and poor transport and education services (13% and 9%, respectively).

Over the past few years, Ugandans’ priorities have shifted. The survey revealed a dramatic increase in concern over economic issues, with the number of citizens citing the cost of living as a top problem more than doubling from 24% in late 2019 to 60% in early 2023. Similarly, unemployment concerns surged from 23% to 48%, and hunger/drought concerns climbed from 20% to 37%.

In contrast, health services, once the top priority, saw a sharp decline. The percentage of citizens citing health as a primary concern dropped from 52% in 2019 to just 29% in 2023, signaling a significant shift in public focus from healthcare to economic stability.

“I used to worry about health, especially when my children fell sick, but now it’s the bills that concern me more. I don’t even have the money for medicine anymore,” said Amina Namakula, a 33-year-old widow and small-scale farmer in Nankonge, Kajjansi Town Coincil, Wakiso District.

Corruption remains a constant worry, with 25% of respondents identifying it as a critical issue. This figure is notably higher than in neighboring countries like Kenya (5%) and Tanzania (4%).

The survey also explored citizens’ perceptions of poverty and its root causes in Uganda. A significant 27% of respondents cited a lack of employment opportunities as the main reason for widespread poverty. Another 54% identified unemployment as one of several contributing factors to economic hardship.

Other factors commonly blamed for poverty include a lack of investment capital (34%), inadequate education (28%), corruption (26%), and a perceived lack of work ethic among some members of society (25%).

When it comes to solutions for poverty, Ugandans suggest a range of measures. To address unemployment, 56% of respondents called for the government to take a more active role in creating job opportunities.

“We need jobs—real jobs,” said Ruth Ninsiima, a 29-year-old graduate in Kampala. “The government should step in and create industries and opportunities that provide stable income for people like me. We are tired of promises, we need action.”

In terms of capital, many citizens believe the government should provide financial support to help individuals invest in businesses or start their own enterprises. Loans, capital investment, and general financial assistance were identified as critical to addressing poverty.

On education, citizens suggested that the government should focus on encouraging parents to send their children to school and provide more free schooling options.

To tackle corruption, 75% of respondents said the government should arrest corrupt officials. Meanwhile, 61% believe that improving the work ethic of citizens through government initiatives could help reduce poverty.

The survey also revealed that most Ugandans believe personal effort is essential for improving one’s status. A substantial 68% of citizens said that hard work is the most important factor in improving one’s life and financial situation. Education came second, with 13% of respondents citing it as key, while only 6% believed connections to people in power were crucial.

“It all comes down to effort. If you work hard, you can make something of yourself,” said Michael Kabiru, 28, a mechanic in Ndeeba, Kampala. “It’s not easy, but nothing in life is. We need to stop looking for shortcuts and focus on working with what we have.”

The Permanent Secretary and Secretary to the Treasury (PSST), Ramathan Ggoobi in his keynote address at the 2024 Edition of the Pakasa at Kampala Parents School saidUganda has regularly been ranked among the most entrepreneurial countries in the world, adding that on average three in every ten Ugandans start a business annually. 

To put it in a global context, Ggoobi said only one in ten Japanese and less than one in ten Americans start a business every year.

“Uganda is known as a global hotspot for entrepreneurs.
More interestingly, 7 of every 10 start-ups in Uganda are owned by the youth,” said the PSST.

However, Ggoobi noted that researchers have found that most Ugandan businesses are small and informal and few succeed and the reason is that most of them are ‘necessity enterprises’ (not businesses searching for opportunity), and in a bid to avoid taxes and registration, many of them miss out on opportunities derived from formalization.

Ggoobi said government is focused on addressing the “binding constraints,” by separating the real issues affecting micro, small and medium enterprises (MSMEs)from the usual ‘laundry list’ cited in self-reported surveys and other badly conducted researches.

He said some of the binding constraints affecting business survival and growth include: capital, technology (tools, codes and knowhow), infrastructure (electricity, transport and logistics, workspaces etc.) and business knowledge and environment (business development services; corporate governance; markets; multiple taxes, fees and licenses; politics within the central business district; crime rates etc.)

The PSST said the Government of Uganda is doing a number of things to address the binding constraints to SME growth and grow thw economy.

“Government has prioritized private sector facilitation, particularly SMEs, to accelerate growth, create jobs and wealth, enhance exports, and increase local content,” said the PSST.

The SME-related interventions include; provision of alternative sources of affordable capital. In total, GoU has provided capital in wealth funds at the tune of Shs 8.03 trillion. 

These funds include Uganda Development Bank (Shs.1.45 trillion), Emyooga (Shs. 553 billion), Parish Development Model (Shs.3.4 trillion), the Agricultural Credit Facility (Shs.495.6 billion), Youth Venture Capital Fund (Shs.12.5 billion), Youth Livelihood Fund (Shs. 207.95 billion), Uganda Women Entrepreneurship Program (Shs. 168 billion), Small Business Recovery Fund (Shs.100 billion), Generating  Growth Opportunities and Productivity for Women Enterprises (Shs.824 billion), and Investment for Industrial Transformation and Employment (Shs.800 billion).

To promote local content, specifically in the Oil and Gas sector, the PSST said 465 Ugandan firms have been awarded contracts worth US$1.973 billion, translating in 74% of contractors in the sector. He said the number of Ugandans registered on the National Oil & Gas Talent Register grew to 8,856 by December 2023. 

Ggoobi said other interventions include; entrepreneurshipskilling programmes under the Presidential initiative for Zonal Industrial Hubs that have been established across the country, in addition to SME workspaces in industrial parks that have been set up
such as Mbarara SME Park. 

He said under the NDP IV, Government has set out to implement a Ten-fold Growth Strategy whose aim is to expand the economy from $50 billion in FY 2022/23 to $500 billion by 2040. 

“The areas that are going to be very lucrative are four: the ATMS: Agro-industrialization; Tourism; Mineral-based industrialization, including oil & gas; and Science, Technology, and Innovation, including ICT,” he said. 

The PSST reiterated that Government aims to progressively improve the investment climate of Uganda by lowering cost of doing business through frontloading investments in energy, ICT
and transport that account for a large share of production costs.

As the survey results underscore the deepening concerns over economic instability and poverty in Uganda, citizens are calling for urgent action from the government. Addressing unemployment, promoting education, combating corruption, and providing financial support to individuals and businesses could be key steps in alleviating poverty and improving the overall quality of life.

With inflation and unemployment at the forefront of Ugandans’ minds, there is growing pressure on policymakers to address the economic challenges that are shaping the nation’s future.