Unemployment remains higher among youth at 17 percent – with a higher rate among young females (20 percent) than young men (14 percent). Additionally, the youth population (aged 15-24 years) not in education, employment, or training accounted for 41.1% in 2021. This shows that more than half the youth potential (58.1 percent) has not been utilized productively, a situation that undermines the demographic dividend.  

The government is developing a National Employment Strategy 2023-2028 and an action plan for 2023-2025. The strategy aims to increase decent and productive work opportunities through four policy priority pillars, as follows: (i) Strengthening job-rich growth and investment; (ii) strengthening education and training systems to meet labour market needs; (iii) eliminating barriers to employment of vulnerable groups (women, persons with disabilities, youth, refugees, migrants and the long-term unemployed); and (iv) strengthening employment and social protection linkages. 

The Strategy also highlights the seven strategic sectors with the highest potential to generate inclusive growth and employment, as well as a governance, monitoring and evaluation framework to measure progress. 

Investment in SDG 8.5 will help in achieving progress in 55 other SDG target areas, mainly SDG 17 (7 targets); SDG 3, 7 and 9 (5 targets). It  has the potential to negatively impact SDG targets 7.2 and 7.3. This means that such efforts need to be complemented with policies to reduce the energy intensity and to increase its efficiency to mitigate the potential negative impact.

Uganda currently faces a challenge of how to transform its economic activity away from low value-added agricultural production, non-tradeable services and manufacturing activities towards high value globally competitive industry for exports. Related challenges include the high costs of infrastructure, the limited availability of technical and managerial skills and the high cost of credit.

The NDP III (2020/21–2024/25) identified industrialization, governance and the environment as key SDG accelerators.  Of the 20 priority programmes, 3 are exclusively focused on promoting industrialization, notably agro-industrialization, manufacturing and mineral-based industrialization. The government also put it in place the required policy and legal framework, including the National Industrial Policy and Strategy and the African Continental Free Trade Area Implementation Strategy. 

By investing in Target 9.2, Uganda can accelerate progress in 48 other SDG targets, mainly in SDG 6 and 11 (8 targets), SDG 7 (5 targets), SDG 2 (4 targets). The pursuit of industrialization also entails trade-offs. It requires careful consideration of environmental sustainability as industrial activities can have adverse ecological impacts — affecting ecosystems (SDG 15 and SDG 6). Therefore, it is crucial to promote sustainable industrialization for inclusive growth, employment and wealth creation.

In the NDP-III the Government of Uganda identified the following deficiencies as key challenges in the governance domain: (i) weak policy, legal and regulatory frameworks for effective governance; (ii) weak business support environment; (iii) low respect for and observance of human rights and fundamental freedoms; (iv) limited access to and affordability of justice; (v) high crime rates; (vi) a weak societal security structure; and (vii) corruption.

The government recognizes these challenges and is working to strengthen the transparency and accountability systems and the institutions to promote good governance. Of the 20 priority programmes in NDP-III, 3 programmes exclusively focus on good governance (governance and security, administration of justice and the legislature). In the NDP-III, the government established an APEX Platform to strengthen the oversight role of the Presidency to improve public policy management and accountability. The government introduced the Parish Development Model to improve public service delivery, especially to vulnerable population groups.

Investment in SDG Target 16.6 will help achieve progress in 72 other SDG targets. Specifically, it will accelerate progress in SDG 14 (9 targets), SDG 6 (8 targets), SDG 17 (7 targets), and SDG 12 (6 targets). Investment in SDG 16.6 has no known trade-offs to other SDGs.