President Yoweri Kaguta Museveni has announced plans to establish a special fund to support unemployed university graduates, a move he says is aimed at helping young people transition from job seekers to job creators.
Speaking to thousands of supporters at Kololo Independence Grounds shortly after being officially nominated by the Electoral Commission to run for a seventh term in the 2026 general elections, Museveni said the fund will specifically target graduates who fail to secure employment within two years after completing their studies.
“I had brought an idea that a university graduate who has left university, and has not got a job for two years, should go to a certain fund where he or she can borrow and start their own business,” Museveni told cheering supporters.
Uganda has one of the youngest populations in the world, with over 75% under the age of 30. Yet, the country struggles with one of the highest youth unemployment rates globally.
While government data shows increased enrollment and completion rates at universities, job opportunities have not kept pace. This has resulted in a large number of educated but idle youth, many of whom turn to informal work or migrate abroad in search of better prospects.
Museveni reiterated that having educated but unemployed youth is still better than having an illiterate population, arguing that the fund will equip them to participate in the “money economy” rather than remain in subsistence living.
Details about the implementation of the fund are still emerging, but according to officials close to the presidency, it will operate like a revolving credit facility, offering:
Low-interest loans to graduates to start small and medium enterprises (SMEs)
Business incubation programs to help youth develop entrepreneurial skills
Monitoring and mentorship support to ensure funds are used productively
Economists say such a fund could help address structural unemployment if paired with reforms in industrialization, vocational training, and investment in value addition to create sustainable markets for new businesses.
“The graduate fund is a popular move. However, its success will depend on transparency, proper targeting, and whether it can be shielded from political capture,” said Dr. Sarah Kabuye, an economist at Makerere University.
Others have raised concerns about financing and sustainability, given Uganda’s rising public debt.
Uganda loses tens of thousands of skilled young people each year to labor export, with many ending up in low-paying, risky jobs abroad.
Experts warn that this brain drain undermines the country’s ability to build a strong domestic economy.
If successfully implemented, the fund could reduce outward migration, boost local entrepreneurship, and tap into the country’s youthful human capital to spur economic growth.
