As Uganda continues to struggle with the rising youth unemployment rates, experts are warning that the crisis is not just about a shortage of jobs.
According to Carolyn Mary Amase, a Financial Literacy Master Trainer and Business Development Coach at Trade Avenue Uganda, the real issues lie deeper within the financial habits and mindset of the country’s youth.
Talking to Business Times Uganda, Amase emphasized that poor financial literacy, unrealistic expectations, and a disempowered mindset are key barriers preventing young Ugandans from achieving their full potential.
“Many young people are stuck in a scarcity mindset driven by learned helplessness; they feel destined to struggle, and that hopelessness stops them from seeking opportunities and embracing alternatives like entrepreneurship,” Amase explained.
A Grim Picture for Young Job Seekers
Amase’s remarks come as the country reflects on data from the 2024 National Population Census, which revealed that over 10 million Ugandans between the ages of 18 and 30 are unemployed.
That accounts for nearly half the country’s youth population, with the unemployment rate among young people significantly higher than the national average.
“The job market is saturated,” she noted, “and young people are still clinging to traditional career paths even as the informal sector expands, offering little job security or upward mobility.”
Beyond Skills: Why Financial Habits Matter
While the government and private sector have launched skills development programs, internships, and entrepreneurship initiatives, Amase believes these solutions alone aren’t enough.
When asked what’s missing in these efforts, she responded, “Even youth who have qualifications and business ideas often lack basic financial habits. That’s why so many of them struggle to sustain employment or businesses.”
She highlighted common issues such as poor saving culture, lack of budgeting skills, and reckless decisions related to debt and investment.
“Some think money management is something to worry about later, others still expect financial support from family, or delay saving because they believe it only makes sense once they start earning more,” Amase explained.
The Pressure to Appear Successful
According to Amase, social pressure and the influence of social media are also contributing to poor financial decisions among young people.
Talking about the role of peer influence, Amase said many young people feel the need to show off success before they’ve achieved it.
“They’re starting businesses without research, borrowing with no plan to repay, and investing in schemes they barely understand,” she said,
She warned that such rushed decisions often fail, with youth facing frustration, collapsed businesses, and financial instability.
“You can’t build a sustainable business without knowledge and planning; jumping into entrepreneurship blindly is why many fail before they even get started,” she cautioned.
Start Small, Save Smart
Amase is clear on one thing: developing financial discipline is not a luxury for the wealthy, but a necessity for everyone.
“Saving is not about waiting for the perfect job or higher income. It’s about building the habit,” she told Business Times.
“Even small, regular savings can grow into meaningful capital over time. That money becomes a cushion and a foundation for future investments,” she advised.
She promotes the idea of “micro-saving,” setting aside even the smallest amounts consistently as a practical and empowering way to build financial resilience.
Entrepreneurship: Not a Quick Fix
While entrepreneurship is widely promoted as a solution to joblessness, Amase cautions against glamorizing it without adequate preparation.
“Desperation drives many young people into starting businesses, but without proper planning or financial knowledge, they end up burning out or accumulating unmanageable debt,” she said.
When asked how poor financial decisions affect youth-led startups, she answered, “It’s fear of missing out. Many invest in opportunities they don’t understand, borrow for lifestyle expenses, and end up stuck in a debt cycle.”
A Call for Early Financial Education
Amase believes that to effectively tackle unemployment, Uganda must also focus on financial education and mindset development starting from a young age.
“Financial literacy is not optional, it’s essential, it must go hand-in-hand with a mindset shift that encourages resilience, responsibility, and self-belief,” she emphasized.
She called on schools, families, and community organizations to take an active role in building financial knowledge among youth.
“Programs like boot camps, mentorships, and peer learning platforms can empower young people to make informed money choices,” she advised.
Walking the Talk
Beyond advocacy, Amase has been at the forefront of equipping young Ugandans with practical financial skills.
Over the years, she has trained thousands of youth through workshops, digital content, and entrepreneurship programs.
Her sessions cover budgeting, debt management, saving, and the principles of running sustainable businesses.
“Youth must embrace self-education around money management, and disciplined saving should be seen as a stepping stone to growth. Once they build that foundation, they can borrow responsibly not just to survive, but to expand,” she advised.
A Hopeful Outlook
Despite the challenges, Amase remains optimistic. She sees a growing interest among Uganda’s youth in gaining financial independence and understanding money beyond spending.
“Uganda’s young people are full of potential, but to truly empower them, we must address not just unemployment, but also the financial mindset and literacy gaps holding them back,” she concluded.
With the right tools, support, and mindset, she believes Uganda’s youth can rewrite their future.