The legal minimum wage has stagnated at 6,000 Ugandan Shillings( US $ 1.7) per month. Established in 1984, it is extremely low in today ' s values. At this rate, one month ' s wages is equivalent to the price of a meal in an inexpensive restaurant, serving traditional cuisine. [ 4 ] Although a new minimum wage of 54,000 Shillings( US $ 15) was negotiated between the government and private sector in 2003, no legislation has so far been passed to implement it. [ 5 ]
Labour activists have reported that government labour oversight practices are insufficient. [ 6 ] Labour inspectors present in only 44 of 112 districts and Occupational Safety and Health standards unenforced due to a lack of resources. Most employers do not give written contracts of employment, resulting in job insecurity and poor union representation for workers. Thus, many prefer informal sector employment to wage employment.
With unstable wages in formal sector jobs and static salaries in many public sector professions, the opportunity cost of switching to self-employment is small, despite entrepreneurship otherwise being considered a high risk career path. In reality, the risk associated with entrepreneurship in Uganda is relatively low, especially considering that people have fewer assets to lose if ventures turn awry, lacking financial capital and savings.
Buses are cramped into a parking lot in Kampala, Uganda. September 01, 2017.
Picture: Vivek Shah