Why Museveni’s cash handouts may fail Uganda’s youth

Date:

BADRU WALUSANSA

In recent years, President Museveni has increasingly focused on the challenges facing Uganda’s youth. The president appears to have taken a more deliberate approach to narrowing the gap between his government and young people.

Time will tell whether this renewed focus is driven by genuine concern or political calculation. Among the approaches he has adopted are cash handouts aimed at helping youths who are struggling with poverty.

Life is undeniably difficult for many young Ugandans. This is not merely rhetoric but a reality that is widely acknowledged.

Claims that youths are not doing enough to improve their circumstances are often weak and unconvincing. Many young people have tried to build decent lives, but the odds remain heavily stacked against them.

Business leader Robert Kabushenga once remarked that “Ugandans are simply poor, the rest are semantics.” Borrowing from those words, it is fair to say that many young Ugandans are indeed poor.

Put plainly, if one sets aside statistics and speaks candidly, many youths struggle to meet the basic demands of life. They remain precariously close to the poverty line and have limited opportunities to secure sustainable livelihoods.

In an effort to escape poverty, some young people have sold family land to finance travel abroad in search of greener pastures. Many end up working under harsh and undignified conditions. Others who complete university or tertiary education with hopes of securing employment often find themselves frustrated by limited job opportunities.

What Uganda needs are sustainable solutions to youth unemployment. Young people should be supported to rethink their purpose and become drivers of the country’s socio-economic and political transformation. However, this opportunity risks being lost if it is not carefully nurtured.

Government programmes such as the Youth Livelihood Programme and the Youth Venture Capital Fund have attempted to address the problem. However, their impact has been limited.

According to the National Development Plan IV, the implementation of youth programmes has faced numerous challenges. These include illiteracy, poor coordination, limited financing, political patronage, and corruption, all of which undermine development efforts.

Faced with these frustrations, the President may have shifted tactics and turned to direct cash handouts as a quick intervention to address youth poverty. Yet questions remain about whether these payments signal a lack of confidence in existing government youth structures or whether they are primarily political gestures.

Cash handouts are unlikely to offer a sustainable solution. While they may provide temporary relief, they do little to address the structural causes of youth unemployment. Job creation, rather than direct handouts, offers a more durable path toward economic independence.

The difference between the two approaches is significant. Handouts can foster dependency, while job creation encourages self-reliance and long-term stability.

In many cases, these handouts have been distributed through youth groups organised as Savings and Credit Cooperative Organisations, commonly known as SACCOs. The process has sometimes appeared simple. Form a SACCO and access funds from the President.

From election campaigns to the period after elections, such handouts have continued to reach youth groups across the country. However, complaints persist that the money often fails to reach the intended beneficiaries. In some cases, it is reportedly diverted for personal gain.

To date, there is little publicly available evidence demonstrating that these handouts have produced lasting economic transformation among young people. A thorough investigation could help clarify their real impact.

While no single policy can solve youth unemployment, cash handouts alone are unlikely to provide the answer.

Greater emphasis should be placed on expanding access to affordable credit for youth-led businesses, strengthening digital infrastructure, promoting technical and vocational education, and supporting youth innovation hubs. Increased investment in sectors such as agriculture, tourism, and industry would also help create jobs.

Uganda’s young population continues to bear the brunt of unemployment. Sustainable interventions could gradually improve the situation.

The greater concern is what might happen if the flow of cash handouts eventually stops. Many young people who have come to depend on them may find themselves with few alternatives.

The author, Badru Walusansa, is a socio-political analyst.


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