Uganda’s GDP growth slowed from 6.8% in the 2019 FY to around 2.9% in 2020 and around 3.3% last year according to data from the World Bank. Despite the number of challenges experienced since 2019, Uganda’s economy has performed better than expected over the past 2 years and the economy did not contract.
This year it is estimated that the economy will grow by around 4.6% and reach 6.4% in 2023. The Stanbic Bank Purchasing Managers’ Index (PMI) over the last two months, we anticipate a gradual growth in the number of jobs across most sectors.
The PMI is a composite index, calculated as a weighted average of five individual sub-components: New Orders, Output, Employment, Suppliers’ Delivery Times and Stocks of Purchases. Readings above 50.0 signal an improvement in business conditions on the previous month, while readings below 50.0 show a deterioration.
The PMI was at 54.9 for January 2022, slightly up from the 51.5 recorded the month before and all core metrics covered by the survey were up including; output, new orders & employment.
Uganda also took a major stride towards oil production with the Final Investment Decision (FID) that was recently announced by the Government of Uganda, TotalEnergies & China National Offshore Oil Corporation (CNOOC).
They announced a $10 billion (Ugx. 34 trillion) investment in the Tilenga – Kingfisher projects and the 1,443-km long pipeline as part of the projects to kickstart Uganda’s oil production around the Lake Albert region. This is projected to create 14,000 direct (57% of them to Ugandans) and 45,000 indirect jobs therefore it’s impact cannot be understated.
Improved travel conditions and less restrictions also represent a massive opportunity for our tourism sector to pick up and thrive in 2022 especially with the launch of the Explore Uganda campaign that uniquely places our country among the most beautiful to visit.
All these developments point toward a more positive outlook for the economy, country and the people, especially the youth who will be seeking out all the new opportunities on the horizon. This bodes well for the job market and at BrighterMonday Uganda, we are excited with the prospect of supporting the economy to fulfill its recruitment needs throughout the year and beyond.
Over the past seven years, BrighterMonday Uganda has worked with over 8,000 employers, and developed a database of over 200,000 candidate profiles. Our cutting-edge proprietary job matching technology allows us to have a comprehensive overview of the labor market, test and filter candidates and opportunities, then give targeted recommendations to both employers and jobseekers.
We are very optimistic that Uganda is emerging from one of the most difficult moments to reclaim its place among the fastest growing economies and most vibrant markets to invest and do business.
Brian Ntambirweki is the CEO of BrighterMonday Uganda.