Uganda sees outsourcing as key to unlocking youth employment

KAMPALA, Uganda—To tackle soaring youth unemployment, the Ugandan government is betting on the burgeoning business process outsourcing (BPO) sector.

Col. Edith Nakalema, head of the State House Investors Protection Unit, said Tuesday that the industry offers a vital lifeline for the country’s educated but jobless youth.

“We’re sitting on a treasure trove of talented young people who can be productively engaged through BPOs,” Nakalema said during a meeting with industry stakeholders in Kampala.

The BPO sector, which involves contracting out business operations to third-party providers, has been touted as a potential game-changer for Uganda’s economy. With the global outsourcing market projected to reach $405 billion by 2027, Ugandan officials believe they can capitalize on this trend to create much-needed jobs.

But to realize this ambition, industry experts say the government must first create a favorable business environment. This includes implementing policies that drive demand, investing in digital infrastructure, and providing training programs to equip young people with the skills needed to succeed in the sector.

“The government needs to put its money where its mouth is,” said Kwesiga Steven, general manager at Exquisite Solution Limited, a Kampala-based outsourcing firm. “We need policies that encourage investment, not stifle it.”

Nakalema acknowledged that the government has a role to play in supporting the sector’s growth. She pointed to the Indian Business Forum’s recent expression of interest in investing in Uganda’s BPO sector as a sign of the industry’s potential.

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

Joshua Akandwanaho, BPO and ITES supervisor at the National Information Technology Authority (NITA-U), emphasized the need for young people to acquire the skills required to succeed in the sector.

“Even those who finished senior six can work in BPOs, in areas such as customer care and marketing,” Akandwanaho said.

Grace Labong Achire, from Yako Call Centre, highlighted the importance of mindset change and soft skills in making Uganda competitive in the BPO sector.

“We need to make our young people appreciate that the sector is competitive,” Achire said. “Most of the young people have gone to school, they have degrees, they are trained but not experienced to work with this new technology.”

Rajnish Jain, founder of Yako Bank, revealed that his company is currently working on a project aimed at empowering young people in the ICT sector.

“We are facilitating and building a sector of Knowledge Process Outsourcing,” Jain said.