Creative initiatives by Ugandan entrepreneurs are at the forefront to drive economic transformation through productivity improvements in key sectors. However, with over 700,000 graduates entering the job market every year and just 90,000 securing formal employment, the future of most youths hangs in the balance. In a bid to address this challenge, the Mastercard Foundation organized the Young Africa Works 2025 Dialogue, a two-day discussion between government ministers, private sector leaders, financiers, and development partners that sought to explore how to empower youth-led entrepreneurship as a catalyst for economic growth. The dialogue explored addressing the main challenges young entrepreneurs face, ranging from limited access to finance, skills development, and market access.

Mastercard Foundation Country Director Adrian Bukenya emphasized the need for systemic change. Even as the Foundation has to date supported 1.3 million young Ugandans to access dignified work and enterprise development opportunities, Bukenya emphasized that achieving impact at scale requires more than numbers. “We need partnership and systemic change in order to refine these interventions and allow young people to access key resources like land, capital, and technical support,” he said. Among the biggest challenges mentioned in the discussion was the failure of young entrepreneurs to access finance. In spite of interventions like the Micro, Small, and Medium Enterprises Recovery Fund, which have provided some relief, the need for high collateral and complex loan application processes remain significant hurdles.

Financial Sector Deepening Uganda (FSDU) Programs Director, Joseph Lutwama, mentioned the need for financial solutions that are tailored. “Even with the presence of financial instruments and increasing financial literacy initiatives, the majority of promising business concepts fail to take off due to a lack of capital,” he explained. Besides finance, land and infrastructure constraints also featured as leading constraints, particularly in the agricultural sector. New approaches like Heifer International’s block farming in Busoga and GOAL Uganda’s co-sharing schemes are proving to be effective in allowing young entrepreneurs to share resources and improve efficiency.

These models are demonstrating how collaboration and resource sharing can overcome some of the obstacles young people face in starting and growing their businesses. Investment in practical business skills training for young people is another crucial area. Institutions such as Muni University, Uganda Rural Development and Training Institute (URDTI), and NSSF Hi-Innovator Business Academy are at the forefront of innovative experiential training initiatives to prepare graduates with hands-on entrepreneurship skills. Universities are being tasked to bridge the education-to-business divide, foster innovation, and allow students to graduate with market-relevant skills. In a keynote speech, Francis Twinamatsiko, Assistant Commissioner at the Ministry of Finance, reiterated government’s dedication to empowering young entrepreneurs.

He cited the imperative of expanding financial inclusion, easing registration of businesses, and introducing youth-friendly tax regimes in order to make the business environment friendly. Twinamatsiko, however, noted the need for an attitude change. We have to encourage young people to look at entrepreneurship as not the option of last resort but as a viable and rewarding career option that drives personal fulfillment as well as national development,” he said. Young businesswoman Immaculate Adongo also expressed the same opinion. In her opinion, too many view entrepreneurship as a last resort rather than a goldmine. “We need to change the narrative and help the youth realize the potential of entrepreneurship in driving economic transformation,” Adongo said.

Her words point to the necessity of changing attitudes towards entrepreneurship in society and helping the youth realize entrepreneurship as a potential avenue to success. For Uganda’s youth entrepreneurship ecosystem to thrive, policy reform and digitalization must be at the center stage. Digital infrastructure investment, ease of business registration, and entrepreneurship education as part of the curriculum will render the environment friendlier for young enterprises. These efforts, in addition to multi-stakeholder involvement, have the potential to unleash Uganda’s youth and drive economic growth. The Mastercard Foundation’s commitment to empowering young people is one such catalyst of this transformation.

The Foundation has collaborated with financial institutions, private sector partners, and development organizations in the past five years to open doors to youth entrepreneurship. By consolidating these efforts and addressing the specific needs of young entrepreneurs, the Foundation is clearing the path towards a brighter future for Uganda’s youth. The Young Africa Works Dialogue has offered the platform for transformation. By bringing together the necessary stakeholders and debating the challenges young entrepreneurs face, the event has charted the course towards a more inclusive and prosperous economy. Through continued coordination and focus on entrenching systemic change, young entrepreneurs are well-positioned to shape Uganda’s economic future.

The Young Africa Works Dialogue has demonstrated the immense potential of youth-led entrepreneurship in Uganda. By removing barriers to finance, skills acquisition, and market access, and by creating an enabling ecosystem, Uganda can harness the creativity and innovation of young people. With the right policies, investments, and change in attitudes, the country can create a future where entrepreneurship is not a second-best option but a central driver of economic growth and transformation.