Activation Policies for the Poor in OIC Member States
64
The government could encourage more informal farming groups (GICs) to become co-operatives,
particularly amongst young people with small or no guarantees, with appropriate support to do so.
Micro finance organisations loan more readily to co-operatives than GICs as the financial risks are
thought to be reduced due to increased capacity. It is mandatory for GICs, once they get to a certain
size, to become co-operatives. The paperwork required to register as a co-operative has been
reduced but a co-operative would still need to set up governance for which they require some
training and support. They also require support to arrange practicalities, such as a fixed address
where the co-operative can be contacted. The provision of support to address these needs could
encourage the creation of co-operatives.
3.4 Uganda
3.4.1 Background
Uganda has an unemployment rate of 9%.100 However, this does not present an accurate indication
of the health of the labour market. Many workers are underemployed. This may be in the sense that
they cannot work 40 hours per week even though they would like to (time-related
underemployment); that workers may have an educational attainment higher than their job requires
(skills-related underemployment); or that workers are inadequately paid (wage-related
underemployment).101 A majority of workers are also employed in the informal sector. The situation
is therefore similar to that of Cameroon; workers cannot afford not to work due to the lack of a
comprehensive social safety net programme. The challenge workers face is finding decent work to
allow them to move out of poverty. This is challenging even for those with a high level of education
due to both a shortage of suitable jobs and graduates pursuing studies in fields that do not match
employer needs. The table below provide more information about the labour market and poverty in
Uganda:
Table 6: Key Labour Market and Poverty Statistics for the Country
Unemployment rate Percentage of workers
working in the
informal sector
Under- employment
rate
Poverty rate
9% (2012/2013) 58% of non agricultural
employment (2009)
Time-related: 9%
Skills-related: 6%
Wage-related: 15% (all
2012/2013)
19.7% (2012/2013)
Working poverty rate Median salary Average consumption Average hours
worked per week
17% (2012/2013) 110,000 UGX per month
(US$39.86)102
232,700 UGX per month
per household
(US$84.77)103
41 (2012/2013)
Source: SESRIC, UBOS & ILO
100 UBOS, Uganda National Household Survey 2012/13
101 Note: three types of underemployment are given in this case study, whereas they are not in the other case studies, because of the
availability of data.
102 Based on a conversion rate as at 18th November 2014
103 Ibid