Life is rife with ironies, some so plain they demand reflection. One such irony lies in the economic struggles of different groups within Uganda, particularly the contrast between rural subsistence farmers and urban salaried workers.
The government, through the Parish Development Model (PDM), has made it a mission to uplift farmers from mere subsistence into the money economy. The mantra is clear: stop working solely for ekida kyonka—toiling merely to feed the stomach—and transition to a more productive life that drives economic growth. But as we dig deeper, a question arises: who truly works “for the stomach”?
The answer, surprisingly, extends far beyond subsistence farmers. Urban salaried workers, the so-called corporates, might well be the most glaring examples of this irony. Consider a friend of mine, who earns one million shillings a month. On paper, they are part of the formal economy, contributing to the nation’s growth.
In reality, their income vanishes as quickly as it arrives—consumed by rent, transport, and utility bills. At the end of each month, their account is drained, leaving no savings, no investments, and no sense of financial security. A decade of work has yielded little more than survival—a paycheck-to-paycheck existence where feeding the proverbial stomach is the only certainty.
This story is not unique; it mirrors the plight of countless urban workers trapped in a cycle of economic survival. They may don suits, sit in air-conditioned offices, and exude an air of affluence, but their reality is starkly different. Beneath the polished exterior lies a life of struggle, where the high cost of living, stagnant wages, and a lack of upward mobility prevent any meaningful progress.
The challenges faced by urban workers highlight deeper structural issues in Uganda’s economy. Low-paying jobs with no clear growth prospects dominate the labor market. Employers, under constant pressure to cut costs, rarely increase wages to match inflation or the rising cost of living. For many urban workers, the notion of saving, investing, or even dreaming of a better future feels like a luxury they cannot afford.
Meanwhile, the PDM focuses on creating pathways for subsistence farmers to build wealth and resilience. But what about the urban workforce? How do we ensure that the money economy they are already part of is not a hollow promise, offering little more than survival? Without addressing the systemic challenges of urban living, the money economy risks becoming a mirage, luring workers with the illusion of prosperity while delivering little more than subsistence in disguise.
Insights from the 2024 Census Report further confirm this troubling reality. Uganda’s age dependency ratio, standing at 89%, highlights the immense burden on the productive population. For every 100 working-age individuals, there are 89 dependents—a figure that exacerbates the struggles of urban workers already grappling with stagnant wages. Urban areas like Kampala and Wakiso, with populations of 1.9 million and 3.4 million respectively, are overcrowded, driving up the cost of living. Rent, transportation, and food costs spiral out of reach for many, leaving salaried workers in a constant state of financial strain.
The labor market offers little pardon. With a labor force participation rate of just 43% and an employment-to-population ratio of 38%, a significant portion of Uganda’s workforce is underemployed or struggling to find meaningful jobs.
Food insecurity, too, is a shared burden, affecting 46% of the population. This figure bridges the gap between rural farmers and urban corporates, challenging the stereotype of food stability among the latter. Even as farmers are urged to transition to the money economy, urban workers find their purchasing power steadily eroded by rising living costs and stagnant incomes.
The irony becomes even clearer when examining population trends. Uganda’s population density of 224 people per square kilometer places immense pressure on urban resources, further escalating rent and transportation costs. Simultaneously, household sizes have shrunk from an average of 4.7 in 2014 to 4.2 in 2024, reflecting the financial pressures that delay family growth and reshape social dynamics in urban areas.
If the PDM seeks to uplift rural communities, a parallel effort must address the struggles of urban workers. Policymakers must explore ways to bridge the gap between wages and living costs. Increasing wages to match inflation, expanding affordable housing, investing in public transportation, and strengthening urban food security are just a few of the measures needed to alleviate the burden on the urban workforce.
