Platform Economy Growth in Uganda: Tackling Gender Gaps and Improving Conditions for Young Workers

The International Labour Organization (ILO), in partnership with the Ministry of Gender, Labour and Social Development, has released an important report highlighting the challenges and opportunities in Uganda’s Platform Economy. Titled “Platform Work in Uganda: Promoting Decent Work for All,” the study, conducted in collaboration with Makerere University, surveyed 647 platform workers across sectors including taxi services, delivery, online freelancing, and e-commerce to understand the landscape of digital labour platforms in Uganda. The report identifies key opportunities, challenges, and gaps in current policies.

During the report launch on Wednesday, November 20, 2024, at the Four Points by Sheraton Hotel in Kampala, Raymond Wasukira, Senior Labour Officer, who represented the Permanent Secretary of the the Ministry of Gender, Labour and Social Development (MGLSD) stated that “the findings of this report will guide us in addressing the gaps in Uganda’s platform economy to ensure that workers benefit from decent and equitable opportunities.” He added that collaboration between government, platforms, and stakeholders is key to achieving this goal.

Evans Lwanga, the Chief Technical Adviser for ILO PROSPECTS Uganda, echoed similar sentiments. “This report highlights the need for urgent policy interventions to ensure platform workers in Uganda are not left behind in the digital economy,” he said.

Key Findings

The report highlights that digital labour platforms have seen consistent growth since 2015, with 18 local and international platforms currently in operation. Although location-based services such as Uber, Bolt, SafeBoda, and Jumia are gaining popularity, the report indicates limited adoption of online freelance platforms due to the digital divide.

The report further reveals that that platform workers are predominantly young (ages 28-32) and well-educated, even in traditionally low-skilled sectors. While freelancers earn higher hourly wages compared to conventional workers, significant income insecurity remains, the report notes.

Additionally, earnings among platform workers vary considerably by sector and gender, with women earning less than men. A significant gender gap exists within freelance work, with men earning an average of 16,472 shillings (US$4.4) per hour for total work compared with 11,075 shillings (US$3) for women. Women earn almost 35% less than men, and this could partly be due to the occupational segregation of tasks as women are disproportionately concentrated in lower-paying fields like writing and administrative support, while men dominate in tasks such as IT and data analysis.

The report notes that while the majority of men (86%) believed that they received fair compensation for their online work, only 57% of women reported the same. This aligns with the findings that men tend to earn more, underscoring a significant pay gap between genders.

Long working hours are alarmingly prevalent, with taxi drivers and delivery workers working an average of 75–79 hours per week. The demanding and often unpredictable nature of platform work takes a toll on workers’ well-being, as they are often stressed. According to the report, freelancers work an average of 46 hours per week, with women working slightly more (50 hours) than men (45 hours). However, a significant portion of this time (10 hours) is unpaid, dedicated to activities like searching for tasks (67%), researching clients (38%), unpaid self-study (38%), client communication (29%) and profile-building (24%).

The survey findings reveal that the majority of workers transitioned to platform work from other jobs. This is primarily due to a lack of available jobs or a desire for better income and skill development opportunities. This transition from previous jobs is evident in the taxi (81%), and delivery (77%), with a smaller but still significant proportion in online freelancing (43%). While one-third of these workers in the taxi and delivery sectors previously worked in related fields, the remainder transitioned from different sectors. Freelancers typically came from salaried positions in various fields. About 58% of the sellers transitioned to the e-commerce marketplace and social media platforms from other jobs and one-third of them worked in related fields.

The challenges outlined in the report include, a lack of social protection for many workers, such as health insurance and pensions, and the prevalence of algorithmic management practices, which restricts workers autonomy and increases stress. Common issues also include account deactivations and unpaid tasks that has an impact on their earnings and livelihoods.

Despite the informal support available through social media, there is minimal organised advocacy for worker rights, indicating a need for greater collective action and unionization.

Recommendations

To ensure decent work conditions for platform workers, the report recommends several policy reforms. Establishing clear legal frameworks to classify workers and define employer responsibilities, guaranteeing the right to organize and engage in collective bargaining, and introducing tailored social security mechanisms for platform work. Addressing occupational safety and health (OSH) risks specific to platforms and enhancing data protection and ensuring transparency in algorithmic processes are the other key recommendations.

As Uganda’s digital economy continues to grow, this report accentuates the urgency of implementing fair and inclusive policies. These findings are timely as the ILO gears up for deliberations on promoting decent work within the platform economy during the upcoming 2025 and 2026 International Labor Conferences.

About the ILO

The International Labour Organization is a UN agency uniting governments, employers, and workers from 187 member states to promote decent work globally.

The ILO in Uganda is actively implementing initiatives to harness the potential of the digital economy in creating job opportunities for youth. These efforts focus on developing digital skills and facilitating job matching within the gig economy, including in refugee settlements. Other key activities include awareness-raising training on labour laws in collaboration with Uganda’s workers union apex body, National Organization of Trade Unions (NOTU) and the launch of a new Community of Practice initiative led by the Federation of Uganda Employers, aimed at fostering collaboration and compliance with decent work principles in the digital economy.

Tags: delivery, Denis Jjuuko, e-commerce, Evans Lwanga, online freelancing, Prime Time Communications, social protection, taxi serviceS, the Ministry of Gender, the National Organization of Trade Unions (NOTU)

Out to Lunch

#OutToLunch: Rampant unemployment is a key national security issue

By Denis Jjuuko The public service ministry recently announced that more than 40,000 people applied for 287 jobs across different government ministries, departments and agencies. More than 28,000 of those who applied qualified, meaning they were selected for aptitude tests which were to be held at the Mandela National Stadium at Namboole. It must be frustrating looking for job in Uganda. The news came after a bombshell report emanating from research by the Inspectorate of Government (IG) and the Economic Policy Research Centre (EPRC) that indicated that Ugandans pay a whopping Shs42.34b annually to district service boards to get jobs. Averagely, the report indicated, 130,000 people pay bribes to land jobs. The people who ask for these bribes know that the jobs are scarce and people are desperate and willing to do anything to land the jobs. When somebody who bribed their way to a job gets employed, it means a few things. First, the person is not the best for the job. They just had the money to pay a recruiter. The best candidate may not have had the money and therefore wasn’t considered. Because the person knows they only got the job through bribery, they will continue bribing their way into senior positions. That is how we end up with incompetent people in positions of authority. People who can’t execute anything and making sure things don’t work or looking at everyone who is competent as a threat or what people call work politics. The people who are competent end up doing very little at work so that the incompetent boss doesn’t feel insecure and threatened. That is how we end with yes people—they won’t advise their bosses. They will do whatever the boss wants whether it makes sense or not. Remember, there are no jobs and these people have families to feed. Rocking the boat isn’t something that they want to do. Second, the people who bribed their way to jobs will only hire those who pay them a bribe. That way you end up with a corrupt layer at every level and an incompetent lot everywhere. Service delivery is impacted. Government then fails to create jobs that young people can apply for and get on merit. Third, because the public service is corrupted, the private sector suffers too. People can’t start and run businesses professionally. The people who are in positions because they paid a recruiter will endlessly try to get a return on their investment (read bribe). Procurement processes will be compromised. Payment for services and goods delivered will be frustrated unless somebody is paid. The bribery doesn’t end at public service. We recently saw many statements from politicians who lost elections for positions in their political parties claiming their rivals won through bribery. Some wondered why people were bribing for positions that were actually “voluntary.” We hear that candidates for Members of Parliament in some constituencies spend more money than they would get in the five years they would spend in the office should they win. If somebody spends more money than they would be officially paid, it means they are doing so to illegally get something. Somebody who sells their house to get money for election will do anything to get their house back. That is how we end up without jobs and seeing young energetic people leaving the country for the Middle East not to do highly technical jobs but menial ones or being trafficked for sex like we recently heard from a BBC investigation. Government has been saying that they are intending to grow the economy to US$500 billion annually. Great stuff but with rampant corruption, it will be a tall order. There is a need to nip corruption in the bud in order to create sustainable jobs for the working age population. Otherwise, we shall continue to see thousands of people filling up soccer stadiums to apply for a few jobs they know they stand no chance of getting. That is what they call desperation. And desperate people can do pretty much anything. Unemployment ends up being a key national security issue that the government must urgently address. The public have a chance to play a key role here by voting people in 2026 not because they bribed them with a t-shirts or some cheap alcohol but those who can address the challenges they face such as unemployment. The writer is a communication and visibility consultant. djjuuko@gmail.com

October 13, 2025

Out to Lunch

#OutToLunch: What employees should know before launching a side hustle

By Denis Jjuuko On Friday 29 August this year, I was invited to speak to the staff of Uganda Registration Services Bureau (URSB) about side hustles for corporates during their end of month Fireplace session. The Fireplace is an internal meeting where guest speakers discuss various topics every last Friday of the month. Here is an abridged version of my presentation. I believe others could find an interesting thing or two. In August 1972, Idi Amin launched his so-called economic war which led to the expulsion of Asians. In the months that followed, Uganda experienced unprecedent inflation. With the economy in free fall, many workers realized that their salaries were no longer sufficient. At Makerere University, the country’s premier higher institution of learning, professors took to driving taxis to supplement their income. One professor, until recently a minister in Museveni’s government, was the taxi driver. His colleague, an education professor, was the ‘turn boy’ or conductor. Others became teachers in secondary schools. Their wives turned the garages of their residences into unofficial canteens. Amin’s economic war led to the birth of side hustles in Uganda, where employees do something outside their official jobs to supplement their incomes. The importance of side hustles was further cemented in 1990s when the Structural Adjustment Programme led to thousands of people losing their jobs. Recent mergers of government agencies (rationalization as they call it) and closure of funding organizations like USAID continue to make employees think of life beyond their offices with polished floors. So, if you are thinking of starting a side hustle, what key things should one think about? Here are a few points to ponder. Time: Side hustles for people doing 8-5 jobs should not be too time consuming. Get a hustle like buying and selling land, flipping houses, buying and selling cars, bonds and unit trusts (if you can call them side hustles), or even supplies. Bars, salons, and restaurants require a lot of time when starting which you may not have as you have to concentrate on your job as well. Also, workers in such sectors are unreliable. You don’t know which day they will not turn up. Or when they will sell a crate of beer and replace it creating an impression there are no customers. Still, you don’t want to stay awake in a kafunda so that a few men not eager to get home can finish their beer and leave to enable you close the day’s operations. Cash payments: Avoid side businesses where most of the payments are made in cash. You don’t know when the workers will disappear with it. Most side hustles are small and may not have systems to protect revenues especially in the beginning. Side businesses where people pay in the bank are better. There you can protect your revenue. I know there are mobile money payment codes these days but there are still a few issues with them to be fully embraced. Small is beautiful: All business plans show profitability at one stage. Also, however much research you do, there will always be stuff you will only learn when doing the business. Start small and allow yourself to learn the trade. Don’t throw all your life savings in a business at the beginning. Don’t borrow to start. If you are to borrow, maybe from family. Start with your savings or pool money with others. Six months rule: Before you quit your job to fully concentrate on the side hustle, instruct your bank to send 100% of your salary to an investment account or unit trusts or bonds. Don’t touch this money. Now, see if you can rely on the side hustle for six months. Pay all business and personal expenses from the business. That way you will know if the business is profitable or if you have been subsidizing it with your salary. That way you will avoid looking for a job a few months of leaving one. Do what others are doing: Your side hustle doesn’t have to be innovative or ground breaking. Do what others are doing. See a sector you can invest in, where you can easily raise start up capital and get going. But run it better than others. Ground breaking ideas can then be implemented when you have money you can afford to lose or can raise the required capital from angel investors. Cashflow is the lifeblood of business: Look for businesses which have good cashflows. Planting trees that mature after 20 years should be for people investing for retirement. But doing something that brings in money regularly helps keep the business operational without necessarily relying on the salary or salary loans. Do people need to do typical side hustles? Should everyone do business? There is no clear answer. One just needs to find a model that works for them. Apart from some telecoms and banks, many businesses in Uganda that publicly publish their returns show net profitability of around 10%-15% annually. This means that an employee who invests in treasury bonds or unit trusts is likely to earn the same percentage without any hustle of running after the ever-elusive customers. It can also be a strategy of accumulating capital to venture into capital intensive side hustles that don’t require a lot of time like real estate. The writer is a communication and visibility consultant. djjuuko@gmail.com

September 25, 2025

Out to Lunch

#OutToLunch: Unambitious delayed projects, potholes creating a self-doubting population

#OutToLunch: Unambitious delayed projects, potholes creating a self-doubting population By Denis Jjuuko A few years ago, I used to frequent Addis Ababa, the Ethiopian capital to largely attend meetings at the African Union headquarters. If you kept away for a few months, you would return to a city that you wouldn’t recognize. A new flyover would exist within a few months. You would see people laying down railway lines and find these huge buses providing public transport. Addis Ababa in the mid 2000s was a construction site that was turning slums into hotels of certain status and other infrastructural projects. They seemed to deliver their projects without much delays. One thing I also noticed about Ethiopians is that they claimed to have the biggest everything. A cab driver or a university professor would quickly tell you that they had the biggest market in Africa — the Merkato, equivalent of our Owino. They claimed they had the largest number of cows on the continent, biggest airline, largest number of producers of leather products and coffee, biggest army and even the most beautiful women. Although some of these claims may be true and others could be debatable, Ethiopians have come to believe that they have to do the biggest things. And they go ahead and do them. Just the other day, Ethiopian Airlines launched perhaps the biggest hotel in Africa. Ethiopian Skylight Hotel in Addis Ababa boasts of 1,024 modern rooms. That is perhaps why they decided to utilize River Nile a little bit more, they didn’t go around building a 100 Megawatts dam. They went for 5,150MW. The Grand Ethiopian Renaissance Dam (GERD) that was launched a few weeks ago is, true to Ethiopian style, billed as one of the largest infrastructural projects on the continent. And like roads and railway lines in Addis Ababa, the hydroelectricity dam, which cost US$5 billion to build was completed in 14 short years. It had many challenges such as protests from Egypt over the use of River Nile — like they do whenever anyone else wants to use the Nile waters as well as funding, technical skills and even bloody wars. But the project never got derailed. Compare it to the Grand Inga Dam in the Democratic Republic of Congo, perhaps the world’s wealthiest country, and you will understand what I am saying. Or just look at some of the countries where it takes a year or more to build a single kilometer of a dual carriage road without interchanges and bridges. To build the GERD, Ethiopia got most of the funding from local contributions in form of donations, and selling of bonds locally and to Ethiopians in the diaspora among other sources. They got very little foreign debt to achieve their project which ideally should ensure affordable electricity access to many people in Ethiopia while exporting some to neighboring countries thereby getting much more foreign revenue. Ethiopia is not some country in America, Europe or Asia. It is actually considered part of East Africa and a mere two hours by air from Entebbe. They face similar challenges like us. Wars, famine, draught and diseases among others. Like Uganda, they are landlocked and depend a lot on agriculture. In fact, we have just toppled them as the largest coffee exporter on the continent. They still produce more coffee though only that they consume a lot of it domestically. Since we are so similar and ideally neighbors, what do they have in their DNA that we don’t? How can they run an airline with more than 150 aircraft while we struggle with about six including leased ones? How can they build flyovers in Addis in months while we take decades to complete ours? Or build small hydroelectricity dams with defaults while they complete mega ones? There is a need to dream big by technocrats and be intentional about building a culture that leads us to achieve our targets and on time. We can have as many patriotic lectures as we wish but if people are driving over potholes every day and have them normalized as the way of life, we won’t achieve more ambitious targets like GERD. We will end up with a population that self-doubts itself. Businesspeople will not dream of creating mega factories or big businesses. Their ambitions will remain importing a few containers from China, driving an old Landcruiser, building a storied house in a slummy area, and another in the village and a few apartments. An ordinary Ethiopian seeing the country launching GERD or the largest hotel on the continent will dream of something as big. The writer is a communication and visibility consultant. djjuuko@gmail.com

September 25, 2025