Uganda’s labour force consists of 15 million individuals with Agriculture accounting for 73% of the labour force employed in 2010. About 95 percent of the 11 million people working in Agriculture are informal workers. Within the services sector, 80 percent of the jobs are in the non-wage/informal sector jobs, mainly in low-productivity retail trade. Other sectors that employ relatively large numbers include the manufacturing sector (500,000 people) with about 60% of these in non-wage manufacturing. Construction accounts for 1.6 percent of the workforce (about 250,000 people). However, over 90 percent of workers are in wage employment sector.
The challenge Uganda faces is to increase the number of jobs in the more productive sectors, shifting people out of Agriculture into services and industry, while at the same time putting in place interventions, which will enhance productivity in Agriculture.
The Business, Technical and Vocational Education and Training (BTVET) sector has the potential of providing the largest number of skilled employees to increase Uganda’s productivity. However, the sector has suffered from weaknesses in five major areas. These include; relevance to economic growth, quality of skills provision, access and equity, organizational effectiveness and financial and internal efficiency. The system does not produce the appropriately skilled workforce that Uganda requires to increase income and employment and to compete internationally. The training institutions do not deliver training commensurate to the required standards and few students access the training.
To enhance the capacity of institutions to deliver high-quality, demand-driven training programs in target sectors. The target sectors are construction, manufacturing and Agriculture.
The purpose of USDP is to support the design of the initial set of reforms that will set the foundation for transforming skills development in the country. It aims at creating a scalable model for high quality vocational and technical training which is linked to labour market needs for specific sectors.