Addressing Graduate Unemployment: A New Initiative by the Ugandan Government
President Yoweri Museveni has introduced a groundbreaking initiative aimed at tackling the persistent issue of graduate unemployment in Uganda. The proposed University Graduates Fund is designed to support university graduates who remain unemployed for at least two years after completing their studies. This move marks an expansion of the government’s broader wealth-creation strategies, focusing specifically on addressing the challenges faced by highly educated youth.
During a campaign rally held in Namisindwa District, Museveni outlined the details of the new fund, which will be managed through regional Saccos (Savings and Credit Cooperatives). These cooperatives will serve as key channels for providing start-up capital to graduates looking to launch small businesses. The initiative aims to empower young people by enabling them to become job creators rather than job seekers.
In addition to the University Graduates Fund, the President announced that the government will allocate an additional Shs15 million to local leaders to access credit. This funding will also extend to religious and cultural leaders, boda boda riders, and youth from marginalized communities. The move reflects the government’s commitment to supporting various sectors of society, particularly those with limited access to financial resources.
The proposed fund mirrors the successful model of the Presidential Skilling Hubs, where Shs50 million is distributed annually to district Saccos as revolving capital for skilled graduates. This approach ensures that funds are reused and sustained over time, creating a long-term impact on employment and economic growth.
At the rally, several beneficiaries of the skilling program shared their experiences. One notable story was that of a single mother who used a Shs200,000 cash reward from State House to start a salon in Manafwa Town Council. Her business now employs six young people and provides training to others, highlighting the transformative potential of such initiatives.
If implemented, the University Graduates Fund will join a growing list of government-led programs aimed at fostering economic development and reducing poverty. These include Emyooga, the Parish Development Model (PDM), the Agriculture Credit Facility, the Women Empowerment Programme, the Youth Livelihood Fund, SAGE, SEGOP, and initiatives for persons with disabilities.
Museveni emphasized the importance of using these funds effectively, stating, “We are saying: use the money we are sending you to get out of poverty. We shall continue sending that money — we can even increase it.”
Support from Local Leaders
Local leaders have welcomed the proposal, recognizing its potential to address the challenges faced by unemployed graduates in the region. Bunambutye East County MP John Musila praised the initiative, noting that Namisindwa has many unemployed graduates who are “a product of the NRM government’s investment in education.” He added that financially supporting them would “complete the equation” by turning them into job creators.
Ema Bwayo, the Namisindwa Youth Councillor and NRM flag bearer for District Chairperson, also expressed support for the plan. She described it as “a timely intervention to counter rising youth unemployment,” but stressed the need for complementary measures such as business incubation, entrepreneurship training, and mindset change programs. “Government can finance ideas, just like the Youth Livelihood Fund did, but graduates need additional skills,” she said.
Bwayo pointed out that unlike school dropouts who often start small and grow steadily, many graduates struggle to navigate the realities of running a business. She called for a holistic approach that combines financial support with practical training and mentorship.
Encouraging Wealth Creation
Museveni used the rally to encourage citizens to focus on wealth creation through commercial farming, value addition, and service-oriented ventures. He argued that these sectors offer greater potential for employment than the limited number of government jobs available. His message aligns with the broader vision of transforming Uganda into a self-sufficient and economically resilient nation.
The rally was part of the President’s ongoing campaign tour of Bugisu, where he continues to seek public support ahead of the 2026 general elections. As the country prepares for another round of political engagement, initiatives like the University Graduates Fund highlight the government’s efforts to address pressing socio-economic challenges.