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This paper leverages the 2015 International Labor Organization (ILO) School to Work Transition Survey (SWTS) for Uganda to examine the determinants facilitating the transition of youth workers from informal to formal employment. SWTS enables analysis using micro data pertaining to youth’s prevailing conditions. The analysis indicates that fostering private sector led growth, investing in education and skills development, implementing targeted programs and, advancing gender parity are essential strategies to mitigate informality.
Across several social and economic dimensions Uganda scores relatively well in sub-Saharan Africa in terms of gender gaps. Yet, despite a progressive institutional framework, women continue facing higher poverty and vulnerability, lower education opportunities, and obstacles to acquiring productive assets. While existing social protection and economic (i.e. poverty-reducing) programs do not show gender exclusion given the need to close the remaining gaps in opportunities and outcomes consideration could be given to strengthening direct gender targeting and increasing programmatic support.
1. Our Ugandan authorities appreciate the constructive engagement with staff and share the thrust of staff's assessment of economic developments and key policy priorities.
1. Uganda has navigated the post pandemic recovery well. The impacts of the pandemic and Russia’s war in Ukraine have by now largely tapered off: real GDP growth is back to its prepandemic levels, inflation is among the lowest in the region, and fiscal and external balances have seen notable improvements (Text Figure 1). However, Uganda’s gap in real per capita income with other emerging and developing economies continues to widen. Over the last year, external buffers have also declined, denting Uganda’s ability to weather future shocks.
This paper revisits monetary policy transmission in Uganda, focusing on the credit and exchange rate channels. Despite inflation being below the target, the Bank of Uganda has maintained a tight monetary policy stance. The findings support the importance of exchange rate developments in shaping monetary policy actions in Uganda, offering several policy recommendations to further strengthen monetary policy transmission and enhance the inflation targeting framework.
We analyze macro-financial linkages in Uganda using the “from-whom-to-whom” balance sheet approach (BSA) framework.2 While the banking sector, which dominates the Ugandan financial system, remains fundamentally sound, there are pockets of vulnerabilities resulting from the growing sovereign-bank nexus and cross-border exposures of the NFC sector which require close vigilance.
UGANDA