Dr Aminah Zawedde

New BPO Policy positions Uganda as Africa’s premier outsourcing hub

by · The Observer

In a pivotal move for Uganda's economic trajectory, the Ugandan Cabinet has approved the National Business Process Outsourcing (BPO) Policy, positioning the country to emerge as a leading outsourcing destination in Africa.

Developed by the National BPO Council under the ministry of ICT and National Guidance, this policy is expected to reshape Uganda's BPO sector, stimulate economic growth, and address the pressing issue of youth unemployment by creating new job opportunities.

The challenges faced by Jane Nakimuli (name changed for privacy), a recent business administration graduate, illustrate the broader employment struggles confronting many young Ugandans. Despite holding a degree, Nakimuli found herself grappling with the harsh reality of a saturated job market.

"I spent countless hours creating my resume and applying for jobs, but the opportunities were few and far between," she said, expressing her frustration. "I began to question the value of my hard-earned education."

Nakimuli's case highlights a systemic issue. Recent statistics show that over 70 per cent of Ugandan youth between the ages of 18 and 35 are struggling to secure meaningful employment, despite possessing relevant qualifications. This alarming statistic indicates a fundamental disconnect between the education system and the job market, emphasizing the urgent need for innovative and scalable solutions to tackle youth unemployment.

The National BPO Policy emerges as a potential solution. After years of engagements and benchmarking studies within Uganda’s BPO sector, the policy draws from the success of industry leaders such as India and the Philippines. The ministry of ICT and National Guidance has crafted a comprehensive framework to leverage Uganda's strengths, aiming to establish the country as a global outsourcing hub.

Uganda’s competitive advantage lies in its young, educated, and English-proficient workforce, alongside affordable labour costs, strategic geographical location, and a supportive government committed to fostering growth. These factors, combined with the nation's time zone alignment with Western markets and rapidly improving ICT infrastructure, make Uganda an attractive destination for outsourcing services.

Reports like the World Bank’s Digital Economy for Africa (DE4A) have highlighted Uganda's digital advancements, particularly in expanding internet connectivity, increasing digital literacy, and improving e-government services. The report notes that over 70 per cent of Uganda’s youth are adept at using digital tools, positioning them well for BPO roles.

Moreover, the Global Innovation Index ranks Uganda among Sub-Saharan Africa's top innovation achievers, thanks to its growing startup ecosystem and entrepreneurial talent. Dr Chris Baryomunsi, minister of ICT and National Guidance, expressed optimism about the policy’s potential impact.

"The National BPO Policy signifies a watershed moment for Uganda. By leveraging our nation’s vast potential and fertile digital environment, we are now ready to attract substantial international investments, nurture homegrown BPO trailblazers, and create abundant employment prospects for our youth. This policy exemplifies our government’s steadfast dedication to transforming Uganda into Africa’s innovation hub and outsourcing capital."

The policy aims to foster collaboration between the government, private sector, and educational institutions, focusing on creating meaningful opportunities for Uganda's youth. By providing a conducive environment for BPO growth, it seeks to attract international companies, encourage local entrepreneurship, and equip the younger generation with the skills required to thrive in a digital economy.

For Nakimuli and other young Ugandans, the National BPO Policy offers renewed hope.

"I am excited about the possibilities the BPO industry presents," Nakimuli shared, her voice now filled with optimism.

"With the right training and opportunities, I believe I can use my skills to contribute to Uganda’s growth. This policy gives me hope for a brighter future."

The policy outlines a multifaceted strategy to develop a thriving BPO ecosystem, including streamlining business processes, ensuring cost-effectiveness, expanding market access, nurturing talent, and developing cutting-edge infrastructure. The ministry has also finalized the National BPO Strategy, which includes specific initiatives and resource allocation plans to ensure seamless policy implementation.

Building on the momentum of past initiatives, such as "Uganda – Africa’s Innovation Powerhouse," the ministry is set to launch high-impact promotional campaigns to showcase Uganda’s BPO capabilities globally, attract international clients, and cement the country's reputation as a leader in innovative outsourcing solutions.

Dr Aminah Zawedde, permanent secretary of the ministry of ICT and National Guidance, applauded the collaborative effort behind the policy.

"The National BPO Policy is a testament to the power of collaboration and stakeholder engagement. It reflects the collective wisdom and aspirations of our vibrant BPO community, and we are confident it will serve as a catalyst for growth and innovation in the sector."

Prof William Bazeyo, chairman of the National BPO Council, emphasized the transformative potential of the policy.

"This policy marks a turning point for Uganda’s BPO industry. It provides a solid foundation for attracting international investment, fostering local entrepreneurship, and positioning Uganda as a global outsourcing powerhouse. We are excited about the vast opportunities ahead and the positive impact this will have on our economy and workforce."

As Uganda embarks on this journey, the BPO sector is poised to play a pivotal role in driving economic growth, diversifying the economy, and generating substantial employment. With 100,000 jobs projected, the National BPO Policy addresses youth unemployment while positioning Uganda at the forefront of Africa’s outsourcing revolution.

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