Unlocking the Potential of Ugandan Entrepreneurs through Enhanced Support for Women in Business
The NSSF Hi-Innovator Programme: Impact and Opportunities
The NSSF Hi-Innovator Programme (“the Programme”) is supporting entrepreneurs of Small and Growing Businesses by extending foundational business knowledge, catalytic seed funding, and working with financing institutions to unlock affordable patient capital to enable these entrepreneurs to become more competitive. The Programme is supported by the Fund in conjunction with the Mastercard Foundation and implemented by Outbox through a network of 12 Enterprise Support Organizations (ESOs).
Despite its broad scope and significant success over the past 4 years of its implementation, a closer examination of the Programme's data reveals that more can be done to leverage this potential, particularly by enhancing support for female entrepreneurs to create jobs for other women.
In the 4 years of its existence, the Program has trained over 30,000 entrepreneurs on good practices of entrepreneurship through its Business Academy, committed seed funding of up to USD 20,000 to 368 businesses across 6 cohorts, and enabled access to follow-up financing to 4 Small and Growing Businesses (SGBs). The Program has created and sustained 170,000 work opportunities, of which approximately 120,000 are youth (aged between 18-35).
The Program is enabling a direct contribution to the Fund’s strategic Vision of 2035, where over the next 10 years the Fund looks to have 15 million members and UGX 50 trillion in Assets Under Management. Notably, the program has increased the Fund’s membership by 3,000 new members who have contributed over UGX 450 million as of the end of March 2024. In its effort to ensure that more women are supported in the entrepreneurship ecosystem, the Hi-Innovative runs cohorts specifically dedicated to supporting women-led and women-owned businesses.
Specific to women, 3 of the 6 cohorts have been designed specifically for women, enabling the Program to impact 198 businesses with seed funding and technical support.
Global Trends in Female Employment
Globally, women's participation in the workforce has seen significant growth over the past decades. According to the World Economic Forum, the global female labour force grew by almost 50% from 1980 to 2016. Despite this progress, women still face challenges such as lower wages and underrepresentation in higher organizational levels than their male counterparts.
In high-income countries, there has been a notable shift towards increasing female labour force participation in sectors that offer greater job protection and security. For instance, in the United States, the labour force participation rate for prime-age women (ages 25-54) reached 77.0% in 2023, exceeding pre-pandemic levels and setting a new high. This reflects a broader move towards enhancing employment quality for women in these regions. However, significant disparities remain, particularly in sectors like retail and hospitality, where women’s employment recovery has lagged behind overall employment recovery post-pandemic. [1]
Uganda's Gender Employment Gap
According to NSSF’s data, women represent about 35% of the formal sector workforce in Uganda, with notable concentrations in specific sectors that exceed this average. For instance, women comprise 42.59% of the education sector, 49.29% in human health and social work activities, 51.00% in financial and insurance services, and 52.91% in recreation, accommodation, and food service activities. These sectors not only employ a higher proportion of women but are also crucial for providing dignified and well-paying jobs.
Despite this higher representation, wage disparities persist within these sectors. On average, women in the formal sector earn UGX 1,626,438, while their male counterparts earn UGX 2,031,885, reflecting a general wage gap of 25%. This disparity is even more pronounced within the sectors where women are predominantly employed:
- In education, women earn an average of UGX 691,255 compared to men's 703,557 UGX.
- In financial & insurance services, women earn 1,930,443 UGX versus men's 2,528,905 UGX.
- In human health and social work activities, women earn 1,298,711 UGX compared to 1,487,009 UGX for men.
- In recreation, accommodation, and food service activities, the average female salary is 333,239 UGX, while men earn 438,101 UGX; the broader category also shows women earning 782,098 UGX against men's 838,869 UGX.
These figures illustrate that even within sectors that are more inclusive of women, there remains a consistent pattern where men earn higher salaries. This suggests that while these sectors provide important employment opportunities for women, they also reflect the broader issue of wage inequality that must be addressed.
The Inspiring Stories of Lynnet Akol and Susan Namirimu
In Uganda, where entrepreneurship is increasingly recognized as a critical engine for economic growth and social transformation, two women are making remarkable strides, not just in their businesses but in altering the employment landscape for many others. Lynnet Akol of Krystal Ice LTD and Susan Namirimu of Mtindo Design Studio exemplify how innovative thinking and determined action can lead to substantial societal benefits.
Nurturing Nutrition and Opportunities: The Journey of Lynnet Akol
Lynnet Akol, the founder of Krystal Ice LTD in Portbell, Luzira, turned a simple parenting challenge into a thriving business that now supports 24 employees and 3,000 farmers. Her journey began with a creative solution to encourage her children to consume fruits by freezing them into ice popsicles. This not only made fruit consumption appealing to her children but also sparked the idea for a business that now produces 3,000 nutritious ice pops daily, distributed across 100 supermarkets around Kampala. Lynnet's enterprise not only feeds the young and old with healthy snacks but also supports a substantial agricultural supply chain, contributing significantly to local economies.
Weaving Success: The Inspirational Path of Susan Namirimu
In the northern city of Gulu, Susan Namirimu, founder of Mtindo Design Studio, has turned her passion for tailoring into a powerhouse for job creation and skill development. Starting as a small shop in 2019, Mtindo has grown into a significant local employer and training centre accredited by Uganda's Directorate of Industrial Training. With funding from the National Social Security Fund’s (NSSF’s) Hi-Innovator Programme, Susan expanded her business to include a design academy and increased production capacity, which has led to the creation of 40 jobs and partnerships with 120 businesses, yielding substantial profits and setting a strong foundation for future growth.
Lynnet and Susan have not only created successful businesses but have also contributed to solving significant challenges in their communities— nutrition and employment, respectively. Their stories are a testament to the power of the entrepreneurial spirit that can drive a positive impact on communities when supported by venture-backed programs. As Uganda continues to cultivate a fertile ground for entrepreneurs, the experiences of Lynnet and Susan offer inspiring blueprints for others, especially women, to follow.
Conclusion
While the Fund’s data reveals notable wage disparities of up to 25% within sectors where women are predominantly employed, these areas—ranging from education and health services to finance and hospitality—provide dignified and fulfilling work opportunities for women in Uganda. These sectors not only offer stability and respectable employment but also hold the potential for achieving wage parity with the right interventions.
By strategically focusing on these sectors, the Hi-innovator Programme can work towards changing the culture and mindset on equitable pay by challenging existing norms of women in the workplace as it works to unlock more dignified and fulfilling economic opportunities through entrepreneurship. This dual approach of increasing female participation in the workforce while addressing wage inequalities is essential for promoting a more inclusive and equitable economic environment. Such efforts are crucial not just for the empowerment of women but for leveraging their full potential to drive sustainable national development.
By Allan Munabi, NSSF Uganda
[1] Fact Sheet: The State of Women in the Labor Market in 2023 - Center for American Progress