Uganda, a landlocked nation in East-Central Africa, is one of the poorest countries in the world. A huge population of the nation is farmers and depends on small plots of land used for subsistence agriculture - the cultivation of cash crops like coffee, cotton, tea, and tobacco. Insufficiency of structured organization, employment opportunities, and underdeveloped service sector are the main reasons behind poor economic conditions. On the other hand, Uganda is enriched with significant natural wealth, including gold, crude oil, and rich agricultural lands—more than two-thirds of the workforce derives employment from these resources.
Overview of Uganda
Population: 42.46 Million
GDP: 41.27Billion USD (FY21)
According to the Uganda Bureau of Statistics (UBOS), the nation’s real gross domestic product (GDP) grew at 2.9% in 2020, which is less than half the 6.8% recorded in 2019 due to the COVID-19 pandemic and subsequent conditions. As per the forecast, the GDP growth is expected at a similar level in FY21. Uganda’s GDP contracted by 1.1% in 2020 and is estimated to have recovered to 3.3% during the 2021 fiscal year. Even if GDP growth recovers by 2022, the level of per capita GDP is likely to remain well below its pre-COVID trajectory.
Being enriched with natural resources and fertile lands with regular rainfall, Uganda is hugely dependent on Agriculture and mining. More than 70% of the labor force is engaged in agriculture, whereas only 30% is employed through government and public sectors. The government has introduced multiple skill training programs and policies to improve the job market along with the economic condition of the country.
A brief glimpse of industries
- Uganda’s labor force is growing above 4% per annum. The unavailability of job opportunities makes a huge population get involved in agriculture or informal sectors with low productivity activities.
- Main industries in Uganda that occupy the largest investment include steel production, cement, cotton, tobacco, sugar, and breweries.
- The manufacturing and construction industry has recovered during the first quarter of 2021, while the cash crop sector has sustained agricultural sector growth.
- Uganda's economy generates a huge share of national income from exporting coffee, crude oil, base metals and products, fish, maize, cement, tobacco, tea, sugar, hides and skins, cocoa beans, beans, flowers, and other products from different parts of the world.
- With the help of foreign help, the government aims to create a greater number of productive employment opportunities to ensure inclusive growth that will enable Uganda to become a stable, integrated middle-income country.
- The government is working towards promoting the urbanization process and transport system to support firm growth and job creation in urban areas.
- The average broadband internet connection speed in Uganda is 16.27 Mbps (Download), whereas the average upload speed is 17.20 Mbps depending on the network connectivity. Mobile services provide similar network connectivity—download speed 17.85 Mbps and 6.24Mbps upload speed.
Cost of living in Uganda
Uganda is quite an affordable place to survive. Though the living cost depends on various factors, including your location, the type of industry dominant in that area, lifestyle, and much more, Uganda offers reasonable food and beverage costs. Cities like Kampala are moderately expensive compared to towns and rural areas. The following table represents a snapshot of living expenses in Uganda.
A Breakdown of the Average Living Cost in Uganda
Salary structure for various roles in Uganda
The following table represents the average annual salary of various sectors in Uganda.
Cost of renting
Cost of living as well as house rent depends on your location in Uganda. Though overall house rent in Uganda is quite affordable, cities are comparatively expensive. Capital Kampala is the most expensive city in the nation. The following table shows some instances of living costs plus house rent in the country.
Your cost of living in Uganda depends on your location
The top sectors that are expected to hire in Uganda in 2021
Top Skills in Uganda
The job market in Uganda is developing. The government is working to develop industries with foreign investments. To improve Uganda's economic condition and job opportunities, the government is encouraging entrepreneurship and private initiatives to develop industries. The major protruding industries in Uganda are:
- Fish farming and integrated aquaculture
- Food processing
Top Skills City-wise Occupation-wise
Capital Kampala has maximum job opportunities. The city has a maximum educated and skilled workforce. Multiple companies have their head office in Kampala. This city offers most job options in the field of:
- Consumer services
- Health care equipment & services
- Food products
- Investment services
- Delivery services
- Broadcasting & entertainment
- Conventional electricity
Entebbe is a central city of Uganda. It offers different job opportunities related to healthcare and Biotechnology.
Arua is a commercial center of Uganda, and the headquarters of multiple business and educational activities are situated here. Being an educational hub and commercial city, numerous job opportunities are available here.
Kakira, Lugazi, Masindi, and Kakuuto cities have a medium population and have less job saturation. These cities offer multiple job opportunities in food product industries, such as the sugar industry.
Fort Portal or Kabarole is one of Uganda's tourism cities and a city with improved healthcare facilities. This city offers job opportunities in the healthcare and tourism industries; positions as healthcare offer, medical professional, sales manager, financial controllers are quite common.
Cost-per-hire is an important metric for any organization, especially when planning to recruit in a foreign country. Hiring cost is a cumulative sum of all the costs associated with filling a position, such as advertising expenses, recruiting events costs, recruitment software fees, onboarding cost, training cost, travel costs, administrative costs and benefits.
When you hire someone in a particular city, a proper assessment of living cost is essential to compensate the employee.
Employment Laws in Uganda
How Can Skuad Help You In Hiring in Uganda?
Hiring in Uganda needs a thorough talent and skill hunt plus in-depth knowledge of the employment laws, trends, city-wise living cost, hiring cost, and so on. To make the hiring easy, cost-effective, and beneficial for your organization, you can consider Skuad as your employer of record partner. Skuad can act as a legal employer to hire employees on your behalf and take responsibility for all formal employment tasks in Uganda. This will give you freedom from hiring stress, and you can concentrate on your core business. Contact Skuad Experts to know more.