ACKNOWLEDGEMENT

I thank my fellow students of Msc Project Management from JKUAT,

Nairobi Campus for providing advice/guidance and proof reading

the manuscript for the proposal. I acknowledge my wife Sarah

Takali for providing invaluable resource on graduate unemployment

in Uganda. I further acknowledge with gratitude our lecturer Mr.

N. Kinyanjui for guiding us in writing proposals for not for

profit projects.

i

DEDICATION

I dedicate this work to my cousin Mr. Hudson Andrua, his wife

Nyamungu Andrua and almighty God who helped me to reach this far.

ii

TABLE OF CONTENTS

ACKNOWLEDGEMENT......................................................i

DEDICATION..........................................................iiTABLE OF CONTENTS..................................................iii

EXECUTIVE SUMMARY...................................................ivACRONYMS............................................................vi

INTRODUCTION.........................................................1Background..........................................................1

Pilot Project: Kampala..............................................2

SITUATIONAL ANALYSIS.................................................2

PROJECT JUSTIFICATION................................................2PROJECT MANAGEMENT...................................................4

PROJECT DESCRIPTION..................................................5Goal of the project.................................................5

Objectives of the Project...........................................5

Out puts of the project.............................................6

SUSTAINABILITY.......................................................6Financial Sustainability............................................6

iii

Management Sustainability...........................................6

MONITORING AND EVALUATION............................................7

WORK BREAK DOWN STRUCTURE............................................8BUDGET..............................................................10

APPENDIX............................................................11Logical Frame Work.................................................11

Organizational Structure...........................................15

Budget Notes.......................................................16

REFERENCES..........................................................16

EXECUTIVE SUMMARY

Upon graduating it is the hope of any Ugandan graduate to secure

a job that can sustain themselves and provide for any additional

need that might come by, however; this hope is usually thwarted

when the reality sets in that unemployment is almost inevitable

in a country that has a high population. Unemployment can be

defined as an economic condition in which individuals seeking

jobs remain un-hired. In Uganda youth unemployment stands at 32%

and its 36% for graduates leaving universities. Uganda currently

has got over 30 degree awarding institutions producing 20,000

graduates every year .The goal of this project is to empower

iv

unemployment graduates by implementing a pilot project in Kampala

where graduates will be trained on entrepreneurship skills,

business management, sales and marketing, business idea

generation, business financial management, customer care and

personal financial management and they will be given 3 million

shillings as venture capital upon writing bankable business

proposals so that they can engage in meaningful economic

ventures. The specific objectives of the project are to reduce

stigma among un-employed graduates, to train the graduates in

business management and entrepreneurship skills and to give

trainees venture capital to start up business and mentor them.

Monitoring and evaluation of the project will be undertaken,

monitoring shall take place immediately after project

implementation this will ensure progress will be tracked and any

deviation will be reported. The project will then undertake mid-

term and expost review. Sustainability of the project will be

ensured by using the project funds as planned. Revenue generated

through the interest rates will be induced back into the project;

this will ensure circulation of funds so that all unemployed

graduates benefit from the loan scheme. The project will

v

contribute to reduction of stigma among unemployed graduates;

this will boost their self-esteem hence they will remain

productive leading to improved Uganda’s economy. The project will

cost Sixteen billion Two hundred and One million Three hundred

and Fifty thousand Uganda shillings only (16,201,350,000). 53.3%

of the cost shall be given to the 2,880 unemployed graduates as

venture capital, 15.1% shall be spent on training un-employed

graduates and 21.6% on administration and contingency of 10%

within period of 5 years.

vi

ACRONYMS

JKUAT Jomo Kenyatta University of Agriculture and Technology

Msc Master of Science

PB Project Board

PAP Poverty Alleviation Project

UCU Uganda Christian University

SACCO Saving credit and cooperative society

KCCA Kampala Capital City Authority

PM Project Management

NGO Non Governmental Organization

Ugx Uganda Shillings

vii

INTRODUCTION

Background

Unemployment is an economic condition in which individuals

seeking jobs remain un-hired. In Uganda youth unemployment stands

at 32% and its 36% for graduates leaving universities. Uganda

currently has got over 30 degree awarding institutions producing

20,000 graduates every year and if no steps/ controls are

established these figures may keep escalating.

Various reasons have been advanced to explain, high graduate un-

employment rate in Uganda. The reasons include: Teaching

irrelevant courses from what the industry requires, inadequate

industrial training opportunities given to the students, poor

quality of teaching owing to high lecturer student ratio and over

reliance on tutorial assistants to lecture full course unit,

rampant examination malpractice in the universities, etc.

Most of the parents/guardians of these graduates sacrificed all

they had to educate them and in most cases the graduates have

other siblings who still need to be supported. Upon graduation

they’re expected to fend for themselves, therefore requiring that

they bear the cost of their basic needs such as accommodation,

feeding and medication. This explains why there are numerous

graduates in the slums of Kampala and other major towns of Uganda

as they cannot afford decent accommodation and food as they try

out there lack on the elusive jobs. They spent the little they

have on transport moving from one urban centre to another to try1

out employment opportunities however, if no opening shows up

hopelessness sets in leading to loss of confidence and self

esteem.

According to Goldsmith and Diette (2012), un-employment is a

stressful event which progresses in phases. Shock tends to

characterize the initial phase, during which the individual is

still optimistic and unbroken. As unemployment advances, the

individual become pessimistic and suffers active distress, and

ultimately becomes fatalistic about their situation and adapts

unenthusiastically to their new state. Thus, the unemployed

exhibit poorer mental health due to elevated levels of anxiety,

frustration, disappointment, alienation and depression.

As a result of frustration and loss of hope about the dreamed

better life upon graduation and employment and high expectations

of their parents or guardians, some un-employed graduates have

resorted to drugs, alcoholism and criminality. Graduate

unemployment is a serious political, social and economic problem

to the country. The government losses revenue as the unemployed

graduates cannot contribute any income to the treasury in terms

of taxes. They also pose serious security threat as they can

easily be incited by people with wrong or evil motivates such as

terrorist out fits who try to undermine the credibility of the

government. They can also easily join criminal gangs and

terrorize people.

2

If the problem of graduate un-employment is not handled, there is

possibility of having a lost generation.

Pilot Project: Kampala

Kampala is the capital city of Uganda located in East Africa it’s

the central business centre for the government. It’s situated

40km north of Uganda’s international airport at Entebbe on Lake

Victoria and is spread haphazardly over seven hills, with a

population of 1.2 million people (2002). A number of economic

activities take place in Kampala, this include road side trade,

food markets, corporate businesses etc. 60% of the unemployed

graduates live in Kampala.

SITUATIONAL ANALYSIS

Uganda is continuing to produce many graduates yet the government

is not coming up with policies to ensure that the graduates can

use their acquired skills in the job market. Due to the need to

survive many graduates take up any job that come their way

irrespective of the social status the job accords thus it is not

surprising to see a graduate guarding a banking hall or hawking

food in the markets of Nakasero. 36% of graduates are unemployed

yet each year universities in Uganda enroll new students implying

the number of those graduating is credibly increasing.

Unemployment has led to change of attitudes of the graduates;

they have ceased to appreciate the value of education and this

further impact on the subsequent generations since they will not

have role models to look up to.3

PROJECT JUSTIFICATION

36% of graduates emerging from over 30 universities are

unemployed; most of the graduates do not have adequate vocational

and entrepreneurship skills during their years of study from

primary, secondary to university education.

Youth un-employment is the major contributor to increases in

homelessness, urban migration, drug abuse, unwanted pregnancies,

single parenthood, broken homes, hooliganism and crime. This

situation retards both individual and national development and

can threaten peace and security.

The Government of Uganda initiated several projects to try to

overcome this challenge not only for graduate un-employment but

for youth un-employment. Programs such as ENTAKIKUA, Poverty

Alleviation Project (PAP), Prosperity for All Program and Youth

Fund were intended to avail the youths and graduates with low

interest loans as startup capital for business without any

success.

These projects were targeting youth and or graduates who were

already in business with little regard for those who were to

start from scratch. The low interest loans are disbursed through

commercial banks where the business plans of the graduates have4

to undergo vigorous analysis and evaluation by bank officials

before such loans are given to the beneficiaries and in most

cases the beneficiaries are denied the loans on the suspicion

that they will not service the loans.

Other funds are considered as government handouts and are so much

politicized that the beneficiaries who get them never take these

money seriously sometimes and end up misusing them.

Further Uganda’s economy cannot create the necessary jobs for the

graduates as there is less investment in sectors which can create

jobs such as manufacturing, agro-processing, etc. Uganda’s

economy has been growing at a rate of 7% over the past 10 years;

however, this has not translated in to job creation for graduates

as the investments propelling this growth were not conducive to

generating employment. These sectors included importing vehicles,

beauty salons, restaurants and hotels and bars. These sectors

cannot create employment for graduates.

Since the graduates have little entrepreneurship and vocational

skills, we therefore want to tackle graduate un-employment and

poverty holistically by looking at training of the graduates to

develop their business management and entrepreneurship skills,

provide startup (venture capital) capital and monitor the

business for at least a period of 2 years to provide expert

advice and later use the same graduates who passed through our

organization in the training and mentorship of others who shall

join the organization. Then form a graduate saving credit and

5

cooperative society (SACCO) so that those who have graduated in

to business phase can save with the SACCO and to also allow the

government to channel funds to support them.

PROJECT MANAGEMENT

The project management team shall consist of the project manager,

project accountant, legal officer, social workers and counselors.

The rest of the PM team members shall report to the project

manager. The project manager reports to Project Board (PB) and

he/she is member of the PB. The PB shall be consisting of ethical

individuals and people of integrity selected among religious

leaders, opinion leaders and people in academia and in business.

It will have 5 members with the sixth being the project manager

and shall have a chairman who will be selected by the Board

members.

1. The project manager, Onzia Joseph holds Master of Science

degree in Project Management from Jomo Kenyatta University

of Agriculture and Technology and Bachelor of Engineering

degree from Kyambogo University. He worked with LTL Projects

(Pvt) Ltd as projects manager in the construction industry

in Uganda and Kenya.

2. The project Accountant, Olema Sam holds Post graduate

diploma in financial management from Uganda Management

Institute and Bachelor of Arts degree in Economics from

Makerere University. He worked with Barclays Bank, Daily

6

Monitor and as District Counselor for Anyiribu Sub-county in

Arua district.

3. Social worker, Chantong Dorcus holds Post graduate Diploma

in project Planning and Management from Uganda Management

Institute and Bachelor of Arts degree in Social Science and

Social administration. She worked with Horizon 3000, a

Germany NGO. She will head Monitoring and Evaluation team.

4. Social worker, Harriet Andrua, holds Bachelor of Arts degree

in Social Science and Social Administration from Kyambogo

University.

5. Counselor, Auma Sarah holds Bachelor of Arts degree in

Guidance and Counseling from Kyambogo University and works

with the office of Prime Minister Gulu office as head of

department Counseling. She will head counseling team.

6. Legal Officer, Mr. Isaac Gidudu holds bachelor’s of law from

UCU and Post Graduate Diploma in Public administration.

PROJECT DESCRIPTION

Graduate un-employment is 36% with over 30 universities producing

over 20,000 graduates annually. With ever escalating cost of

living, graduate un-employment shall cause serious national

problems such as criminality, prostitution and escalation of un-

employed participating in the drug industry for survival. These

figures are expected to rise if the problem of un-employment is

not tackled.

7

This project is intended to benefit un-employed graduates who

failed to secure employment in either private sector or

government. It will empower graduates who failed to secure

employment after two years from date of graduation from the

university by training them in business management and

entrepreneurship skills in order to unlock their potential. The

graduates will be trained in entrepreneurship and business

management skills, sales and marketing, group dynamics, business

idea generation and inspiration, business foundation, business

financial management, customer care, legal aspects of small scale

enterprise and personal finance management. The last session will

be business planning where the graduates will be taught on how to

develop business plans and proposals that can be used to source

for funds. It’s assumed that these un-employed graduates have got

skills which just needs fine tuning through training and

development.

On larger scale the project shall benefit the graduates, parents,

the public, the government and the national economy.

Goal of the project

The goal of this project is to empower un-employed graduates in

Uganda by implementing a pilot project in Kampala where the un-

employed graduates shall be trained in business management and

entrepreneurship skills and availed with venture capital to start

their own businesses.

8

Objectives of the Project

1. Reduction of stigma among un-employed graduates.

2. To train the graduates in business management and

entrepreneurship skills.

3. To give trainees venture capital to start up business and

mentor them.

Out puts of the project

1. Reduction of stigma among un-employed graduates by 40% in

the next 5 years. This shall be achieved by counseling the

graduates so that they can regain their self esteem and be

able to believe in themselves again.

2. To train 40% percent of the graduates in business management

and entrepreneurship skills in the next 5 years. This shall

enable them to get necessary skills to identify businesses

opportunities from within and outside their area of

professional program of study undertaken at the university.

The biggest problem with starting a business is identifying

which business to start followed by venture capital. We want

to conclusively address this problem in the training so that

trainees can be able to see business opportunities as they

come. This is then coupled with business management skills

to enable them harness their management skills so that they

can successfully run the business started by them.

9

3. To give graduate venture capital of maximum 3 million Uganda

shillings each to 720 graduates annually for successful

business proposals at interest rate of 8% per annum in the

next 4 years. With this venture capital the graduates shall

be able to start business which we shall monitor so as to

try to ensure its success through mentorship. This shall

enable them to employ other youths, earn a living and pay

taxes to the government.

SUSTAINABILITY

Financial Sustainability

The project finances shall be obtained from the donors (local and

foreign) donors, from Youth Fund under government of Uganda,

World Bank and African Development Bank. Internal revenue shall

be generated through registration fees and contribution from the

project founder.

More revenue shall be generated through interests charged on the

loans advanced to the graduates who completed the training and

loans advanced from the graduate SACCO to the business community

and through demonstration businesses set up for training the

graduates.

10

Management Sustainability

The project shall have a dedicated staff who shall ensure its

proper management and voluntary staff. Clear job description and

specification were outlined for the purposes of replacement in

case any of the staff is deemed to be unfit to perform his/her

duties to the satisfactory levels.

We hope to work and cooperate with other organizations whose

vision and mission is to help uplift graduates from poverty

through tackling un-employment.

MONITORING AND EVALUATION

The project shall be monitored and evaluated constantly in

intervals of every 2 months to assure whether or not the project

is going as planned. The exercise of monitoring and evaluation

shall be done by the Project Board with view to detect any

weakness and or pitfalls during implementation period of the

project. Once pitfalls are detected the Project Board shall

institute immediate measures to ensure the project achieves its

objectives.

The evaluation shall help improve project performance. Through

project evaluation, the Board may recommend changes in the

inputs, processes, administration and modification of objectives

and other important aspects which might be considered to affect

success.

The project shall be evaluated based on the following indicators:

11

1. Number of un-employed graduates enrolled.

2. Number of un-employed graduates undertaking counseling.

3. Checking the impact of counseling on behavior change and

self esteem.

4. Number of un-employed graduates undertaking business

management and entrepreneurship training.

5. Number of fundable business plans written by un-employed

graduates.

6. Number of un-fundable business plans written by un-employed

graduates.

7. Number of un-employed graduates who start business.

8. Number of un-employed graduates doing successful business.

9. Number of un-employed graduates doing unsuccessful business.

Monitoring of the project shall be conducted on monthly basis and

financial report submitted to the project manager. However,

monitoring reports shall be submitted to project board after

every 2 months and to funders on quarterly basis. Reports shall

monitor how inputs are being made and how outputs are being

achieved. Financial reports shall reflect the budget description

and projected costs of the project. Financial reports shall have

an income and expenditure sections as shown below:

a) Income.

i. Foreign donor funding sources.

ii. Local donor funding sources

iii. Internal sources.

12

b) Expenditure (by line items as per the budget and by non line

items)

c) Balance of donor funds and internally generated funds.

The exchange rate for the report period will be shown.

WORK BREAK DOWN STRUCTURE

Activity

Duratio

n Unit

Person(s)

Responsible RemarksIncorporation of the

PB 2 weeks

Project

manager  Registration of the

project and opening

bank account. 2 weeks

Project

manager/legal

officer  Rent of project

offices and its

furnishing. 3 weeks

Project

manager/accoun

tant  Hiring consultants to

develop training

1 month PB  

13

syllabus and to train

PM staff.Renting class room

blocks and purchase of

training facilities 2 months

Project

Manager/

accountant.  

Recruitment of

trainers, volunteer

trainers and

motivational speakers

1 month PB  

Training of un-

employed graduate 6 months

Trainers and

volunteer

trainersIndustrial training

and submission of

business proposal for

assessment 2 month

Trainers, PM

staff and PB.Award of venture

capital 2 weeks PB

BUDGET

14

No. Item AmountProposed Budget for the 1st year

1 Registration of the project and

opening bank account

500,000

2 Rent of project offices and

furnishing for 1 year

39,600,000

3 Hiring consultant to develop

training syllabus and train PM

staff

10,000,000

4 Rent of class room block and

training facilities for one year

128,000,000

5 Venture capital for 720 students

at 3 million each.

2,160,000,000

6 Office operations for one year 200,000,0007 Allowance for Project manager for

one year

72,000,000

8 Allowances to other PM staff 216,000,0009 Allowances for trainers 360,000,00010 Allowances to PB 200,000,000

Subtotal 1 3,386,100,000Add 10% contingency 338,610,000Total 1 3,724,710,000Proposed budget for next 4 years

1 Rent of project offices and

furnishing for 4 years

158,400,000

2 Rent of class room block and

training facilities for one year

512,000,000

15

3 Venture capital for 2,160

unemployed graduates at 3 million

each for next 3 years.

6,480,000,000

4 Office operations for next 4 years 800,000,0005 Allowance for Project manager for

next 4 years

288,000,000

6 Allowances to other PM staff for

next 4 years

864,000,000

7 Allowances for trainers for next 4

years

1,440,000,000

8 Allowances to PB for next 4 years 800,000,000Subtotal 2 11,342,400,000Add 10% contingency 1,134,240,000Total 2 12,476,640,000Grand Total (Total 1 + Total 2),

Shs

Grand Total (Total 1 + Total 2),

USD

16,201,350,000

6,612,795.92

Current exchange rate, 1 USD = Ugx 2,450 shs

APPENDIX

Logical Frame Work

Summary of

Objectives/Act

Objectively

Verifiable

Means/Source of

Verification

Important

Assumptions

16

ivities IndicatorsGoal: to

reduce

graduate un-

employment in

Uganda.

To train and

support 3000

un-employed

graduates

start

business and

mentor them

in 5 years.

1 - Registrar of

companies for

companies

started.

2 - KCCA and

town councils

for trading

licenses.

1 - The

political

situation shall

be favorable to

enable the

training to

proceed.

2 - Funding

shall be

available.

3 - The un-

employed

graduates shall

enroll for the

training.Specific

Objectives:

1 – Reduction

of stigma

among un-

employed

graduate.

2 – To train

the un-

employed

1 - Number of

un-employed

graduates

seeking

counseling

services.

2 – Number of

fundable

business

1 – Interviews

with un-employed

graduates and

observations of

their level of

self esteem.

2 – Evaluation

and monitoring

reports.

1 – The un-

employed shall

not shy away

from their

challenges.

2 – The un-

employed

graduates shall

17

graduates in

business

management and

entrepreneursh

ip skills.

3 – To give

trainees

venture

capital and

mentor them.

proposal

written and

funded

business

proposals.

3 – Number of

trainees who

have received

venture

capital,

number of

trainees

doing

successful

businesses

and the

number of

trainees

saving with

graduate

SACCO.

3 – Evaluation

and monitoring

report.

be able to

complete the

training and

trainers shall

be available.

3 – Funds shall

be available.

Out puts:

1 – 40%

reduction in

stigma among

1 – Drop in

the number of

un-employed

1 – Interviews

and observation

by counselors.

1 – The

counselor

assessments

18

trainee un-

employed

graduate.

2 – To train

40% of un-

employed

graduates in

business

management and

entrepreneursh

ip skills in

the next 4

years.

3 – To give

venture

capital of Ugx

3 million to

720 trained

un-employed

graduates

annually for

the next 4

years.

graduates

seeking

counseling.

2 – At least

40% of un-

employed

graduates

writing

successful

fundable

business

proposals and

40% of

business

proposals

getting

funding.

3 – Ugx 8.64

billion

received by

2,880 trained

un-employed

graduates as

venture

2 – Evaluation

and monitoring

reports.

3 – Evaluation

and monitoring

report, the

number of

businesses

started by the

trained un-

employed

graduates and at

least 2,880

trained un-

employed

graduates

joining the

graduate SACCO.

shall be

accurate.

2 – Good

trainers shall

be available.

3 – The founder

shall be able

to raise all

the required

funds.

19

capital in

the next 4

years.Activities:

1 –

Incorporation

of PB.

2 –

Registration

of the project

with Ministry

of Gender,

Labor and

Social

Development

and opening

project bank

account.

3 –

Development of

project

website.

4 – Rent of

1 – Number of

nominated

persons who

accepted to

be on the PB.

2 – The cost

of project

registration

and cost of

opening

project bank

account.

3 – The cost

of the labor

for

development

the project

website and

copy of

contract

1 – Number of

letter of

acceptance from

nominated

persons to be on

the PB.

2 – Vouchers and

receipts for

project

registration and

opening project

bank account.

3 – Voucher and

or receipt for

payment made for

development of

project website.

4 – Vouchers and

1 – All the

members of PB

shall give

their best to

the project.

2 – The project

shall be

successfully

registered by

Ministry of

Gender, Labor

and Social

Development and

project bank

account shall

be opened.

3 – The project

website shall

be successfully

developed.

20

project

offices and

furnishing it.

5 – Hiring of

consultants to

develop

training

syllabus and

to train

project

management

staff.

6 – Rental of

class room

blocks and

purchase of

training

facilities.

7 –

Recruitment of

trainers,

volunteer

trainers and

motivational

speakers.

8 – Media

agreement.

4 – The cost

of rent, rent

agreement and

cost

furnishing

the office.

5 – Contract

agreement and

cost of the

consultancy

services.

6 – Rent

agreement,

cost of class

room rent and

cost of

training

facilities.

7 – Contract

agreements

signed.

or receipt for

rent and

furnishing the

office.

5 – Vouchers and

or receipts for

payment.

6 – Class room

rent voucher and

voucher training

facility

voucher.

8 – Vouchers for

the media

advertisement.

4 – The renting

the project

office and

furnishing it

shall be

successful

done.

5 – The

appropriate and

relevant

training

syllabus shall

be developed

and project

staff trained.

6 – Class room

blocks shall be

rented and

necessary

training

facilities

purchased.

21

advertisement

and admission

of un-employed

graduates.

9 – Training

of the un-

employed

graduates.

8 – Cost of

media

advertisement

and number of

students

admitted.

9 – The

number of un-

employed

graduates

attending

classes.

9 – Attendance

lists.

7 – Relevant

training and

information

shall be

delivered to

the trainees.

8 – The project

shall be

successfully

communicated to

the masses and

un-employed

graduates shall

be admitted.

9 – The classes

shall be

successfully

conducted.

22

Organizational Structure

Budget Notes

23

Project Board

Project Manager

Legal Officer

Project Accountant

Head of Counseling

Head of Training

Head of M&E

Social Workers

TrainersCounselo

rs

Accounts Assistants

The total budget for the project is Sixteen billion Two hundred

and One million Three hundred and Fifty thousand shillings

(16,201,350,000). 53.3% of the budget shall be given to the un-

employed graduates as venture capital, 15.1% shall be spent on

training un-employed graduates and 21.6% shall be spent on

administration and contingency of 10% within period of 5 years.

REFERENCES

1. John Chikati. The complete handbook of sample project

proposals.

2. The young leaders think tank for policy alternatives

3. Arthur Goldsmith and Timothy Diette (April 2012). Exploring

the link between unemployment and mental health outcomes.

Retrieved from

http://www.apa.org/pi/ses/resources/indicator/index.aspx

4. Labour market status report for Uganda (2011). Ministry of

Gender, Labour and Social Development.

5. Muhammad K. Mayanja (July 2012). Can graduate venture

capital generate employment? Retrieved from

http://www.campusjournal.ug/index.php/formalsector

24