President Museveni Signals Labour Reforms, Champions Wealth-Driven Job Creation

President Yoweri Kaguta Museveni has announced potential sweeping reforms in Uganda’s labour sector, focusing on establishing a minimum wage, phasing out casual labour, and tightening oversight of employment agencies. Speaking at the International Labour Day celebrations on May 2, 2025, at Nakaale Grounds in Nakapiripirit District, the President outlined a vision for inclusive job creation rooted in wealth generation. The event, themed “Consolidating on the Gains of the Parish Development Model (PDM) for Increased Productivity and Inclusive Job Creation,” underscored the government’s commitment to economic transformation.

President Museveni revealed that the Cabinet will revisit critical labour issues in June 2025, following discussions with workers at State House, Entebbe. “We talked about the minimum wage, the tripartite arrangement, and the issue of casual labour,” he said. “We are also going to look into employment agencies that exploit workers by standing between them and employers.” He emphasized a sector-by-sector approach to ensure practical and consultative solutions.

The President also criticized the reliance on foreign labour in sectors where Ugandans are qualified, questioning why foreign companies import workers when local talent is available. He pledged stricter scrutiny of institutions prioritizing foreign labour over Ugandans.

Central to Museveni’s address was the linkage between wealth creation and sustainable employment. “Jobs cannot exist without wealth,” he declared, citing the Parish Development Model (PDM) as a cornerstone of this strategy. He shared success stories of PDM beneficiaries, such as a Fort Portal entrepreneur employing 15 people through animal feed production and a Nakapiripirit farmer who transitioned from green grams to pig farming, now managing 35 pigs.

The President highlighted investments in infrastructure, including low-cost electricity, railways, affordable credit through the Uganda Development Bank (UDB), and cheaper internet, as critical enablers of wealth creation. According to the Uganda Bureau of Statistics (UBOS), Uganda’s workforce includes 1.4 million factory workers, 3.6 million in agriculture, 5 million in services, 46,000 in ICT, and 480,000 in public service, with the private sector driving significant job growth.

Museveni praised the growing peace and development in Karamoja, while condemning cattle rustling as a barrier to progress. “A real cattle lover doesn’t steal,” he quipped, emphasizing both moral and practical reasons for rejecting such practices. He urged Ugandans to embrace patriotism and Pan-Africanism to expand market opportunities. “Factories and jobs mean nothing without a market. We need East Africa and beyond,” he said, highlighting the limitations of Uganda’s internal market.

The Minister of Gender, Labour and Social Development, Hon. Betty Amongi, described Uganda’s labour force as the economy’s backbone, with 73% of workers under 30, according to the 2024 UBOS Census. She stressed the need to protect workers’ rights and enhance productive employment. Hon. Anyakun Esther, Minister of State for Labour, Employment and Industrial Relations, sought continued presidential support for the Third Decent Work Country Program (2025/26-2029/30), launched at the event, to improve working conditions and labour productivity.

Representing workers, Mr. John Oketcho of the Central Organization of Free Trade Unions (COFTU) praised Museveni’s leadership and the PDM’s role in poverty alleviation. Mr. Fred Bamwesigye of the Uganda Federation of Employers commended the NRM government for stabilizing the economy, noting Uganda’s low inflation and projected GDP growth of over 7%.

The event saw the launch of the Labour Market Information System and a Digital Job Matching System, alongside the Third Decent Work Country Program, aimed at promoting employment and workers’ rights. President Museveni also awarded medals to 61 individuals for their contributions to Uganda’s development.

Attended by dignitaries including the 3rd Deputy Prime Minister, Rt. Hon. Rukia Nakadama, ministers, MPs, and diplomats, the celebrations underscored Uganda’s commitment to a dynamic, inclusive labour market driven by wealth creation and regional integration.

As the government prepares for further discussions in June, President Museveni’s vision signals a transformative approach to labour and economic policy, with the potential to reshape Uganda’s workforce for years to come.