Youth Livelihood Programme Uganda

REPUBLIC OF UGANDA
MINISTRY OF GENDER, LABOUR AND

SOCIAL DEVELOPMENT
YOUTH LIVELIHOOD PROGRAMME (YLP)
PROGRAMME DOCUMENT
DECEMBER,
DECEMBER, 2013
TABLE OF CONTENTS
TABLE OF CONTENTS ........................................................................................................................... i
ACRONYMS AND ABBREVIATIONS ................................................................................................ iv
CHAPTER 1 ................................................................................................................................................ 1
1.0 INTRODUCTION........................................................................................................................... 1
1.1 Background and Country Context ............................................................................................ 1

1.2 The Un-employment Challenge ................................................................................................. 1
1.3 Justification for the Youth Livelihood Programme .......................................................................... 2
1.4 The Legal Policy Framework ..................................................................................................... 3
CHAPTER 2 ................................................................................................................................................ 5
2.0 PROGRAMME DESCRIPTION ................................................................................................... 5
2.1 Introduction ................................................................................................................................... 5

2.2 Programme Objective ............................................................................................................... 5
2.3 Key Performance Indicators (KPI) ............................................................................................... 5
2.4 Target Population and Targeting Mechanism ............................................................................... 6
2.5 Programme Period and Geographical Coverage ........................................................................... 6
2.6 Operating Principles...................................................................................................................... 6
2.7 Programme Financing and Resource Allocation Criteria ............................................................ 7
2.8 Project Eligibility Criteria ............................................................................................................. 8
2.9 Environmental and Social Safeguards .......................................................................................... 9
2.10 Sustainability................................................................................................................................. 9
2.11 Key Features of the Design of the Youth Livelihood Programme ................................................ 9
CHAPTER 3 .............................................................................................................................................. 11
3.0 PROGRAMME COMPONENTS ................................................................................................ 11
3.1 Skills Development (SD) Component......................................................................................... 11

3.2 Livelihood Support (LS) Component ......................................................................................... 12
3.3 Institutional Support (IS) Component ............................................................................................ 12
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MGLSD-YOUTH LIVELIHOOD PROGRAMME DOCUMENT
(ii) Transparency, Accountability And Anti - Corruption ................................................................ 13
CHAPTER 4 .............................................................................................................................................. 15
4.0 PROGRAMME IMPLEMENTATION ARRANGEMENTS.................................................... 15
4.1 General Arrangements ................................................................................................................. 15

4.2 Youth Interest Group (YIG)........................................................................................................ 18
4.3 Guarantors for Youth Interest Groups ........................................................................................ 18
4.4 Project Implementation by Youth Programme Management Committee (YPMC) .................... 19
4.5 Beneficiary Selection ................................................................................................................. 20
4.6 Funds Flow.................................................................................................................................. 20
–4.8 Monitoring and Evaluation ......................................................................................................... 23
CHAPTER 5 .............................................................................................................................................. 24
5.0 PROJECT CYCLE AND BENCHMARKS ................................................................................ 24
CHAPTER 6 .............................................................................................................................................. 28
6.0 FUND REVOLVING MECHANISM ............................................................................................ 28
CHAPTER 7 .............................................................................................................................................. 30
7.0 FIDUCIARY ISSUES ...................................................................................................................... 30
7.1 Financial Management ................................................................................................................ 30

7.2 Procurement ................................................................................................................................ 30
CHAPTER 8 .............................................................................................................................................. 32
8.0 INSTITUTIONAL STRUCTURE ................................................................................................... 32
8.1 National Level.................................................................................................................................. 32

8.2 District and Sub-county Levels ................................................................................................... 33
8.3 Community Level ....................................................................................................................... 33
CHAPTER 9 .............................................................................................................................................. 34
9.0 ROLES OF OTHER KEY STAKEHOLDERS ......................................................................... 34

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(a) Ministry of Gender, Labour and Social Development ................................................................ 34
(b) Ministry of Finance, Planning and Economic Development ...................................................... 34
(c) Ministry of Local Government ................................................................................................... 34
(d) Ministry of Justice and Constitutional Affairs ............................................................................ 35
(e) Ministry of Public Service .......................................................................................................... 35
(f) Ministry of Education and Sports ............................................................................................... 35
(g) Ministry of Trade, Industry and Cooperatives ............................................................................ 35
(h) Office of the Prime Minister ....................................................................................................... 35
(i) Inspector General of Government (IGG) ........................................................................................ 36
(j) Office of the Auditor General ......................................................................................................... 36
(k) Bank of Uganda .......................................................................................................................... 36
(l) Parliament ....................................................................................................................................... 36
(m) National Youth Council .............................................................................................................. 36
(n) District Authorities.................................................................................................................. 37
ANNEXES ................................................................................................................................................. 38
ANNEX 1: PROGRAMME RISKS AND MITIGATION MEASURES............................................... 38
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ACRONYMS AND ABBREVIATIONS
ACDO Assistant Community Development Officer
AU African Union
BoU Bank of Uganda
CAO Chief Administrative Officer
CBO Community Based Organisation
CDD Community Demand-Driven Development
CDO Community Development Officer
CSO Civil Society Organisation
DEC District Executive Committee
DTPC District Technical Planning Committee
ESMF Environmental and Social Management Framework
EPRA Extended Participatory Rural Appraisal
GoU Government of Uganda
IEC Information Education and Communication
IGA Income Generating Activities
IS Institutional Support Component
LC Local Council
LG Local Government
LS Livelihoods Support Component
MFPED Ministry of Finance, Planning and Economic Development
MGLSD Ministry of Gender, Labour and Social Development
MIS Management Information System
MoU Memorandum of Understanding
NGO Non-Governmental Organisation
NTWC National Technical Working Committee
NYPC National Youth Policy Committee
PIS Programme Implementation Support
PMA Programme for Modernisation of Agriculture
PS Permanent Secretary
RDC Resident District Commissioner
RPF Resettlement Policy Framework
SAC Social Accountability Committee
SC Sub- County
SCC Sub-County Chief
SD Skills Development Component
SDIP Social Development Investment Plan
STPC Sub-county Technical Planning Committee
TAAC Transparency, Accountability and Anti-corruption
TST Technical Support Team
TV Television
UBOS Uganda Bureau of Statistics
UGS Uganda Shillings
UN United Nations
USD United States Dollars
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YF Youth Facilitator
YIG Youth Interest Group
YLP Youth Livelihoods Programme
YPMC Youth Project Management Committee
YPC Youth Procurement Committee
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CHAPTER 1
1.0 INTRODUCTION
1.1 Background and Country Context
The Constitution of the Republic of Uganda (1995), defines a youth as a person between
the age of 18 and 30 years. The population of the youth in Uganda is estimated at 6.5
million, representing 21.3% of the total population of the country. With an annual
average population growth rate of 3.2% (1.3 million people), the youth population in the
country is projected to hit 7.7 million by 2015. The major demographic issues in Uganda
arise from the age structure of the population rather than the overall size of the
population. Uganda has a very young population which represents a major challenge in
the short and medium term if not well planned and provided for.
Increasing employment rates and reduction of poverty among the youth, is a major
challenge and a high priority for the Government of Uganda (GoU). Uganda Vision 2040
recognizes that Uganda has a labour force that is largely under or unemployed due to
inappropriate skills and slow labour absorptive capacity of the economy; as a result, a
large number of unemployed youth are becoming a social and economic threat. The
National Development Plan (2010/11 to 2014/15), identifies promotion of non-formal
skills and promotion of start-ups and youth entrepreneurship as part of Government
strategies to address the challenges of labour and employment in the country.
1.2 The Un-employment Challenge
The high level of unemployment among the youth is a concern worldwide, as it is a

recipe for organized crime, lawlessness, political instability and social conflicts. In
Uganda, the Youth Employment Report (UBOS September 2012), indicates that the total
labour-force in the country is comprised of 4.4 million youth. About 32% of the
estimated 6.5 million youth in the country are jobless, about 2 million of which are
literate; and 2 million are under-employed. Fifty-percent 50% of the economically active
youth are not engaged in income-generating employment (MFPED 2011). Youth self-
employment is by far the most important form of youth work. The survey reveals that
60% of employed young people are self-employed, while 70% of the employed youth in
rural areas are engaged in agriculture. Seventy-percent (70%) of the youth in urban areas
are engaged in the service sector. Informal employment accounts for the highest
proportion of the employed youth outside agriculture.
Youth unemployment is more pronounced in urban areas than in rural areas, as a result of
rural –urban migration. It is estimated that 67% of the youth get engaged in some form of
employment by the age of 18 years. This large number of youth that enter the labour
market at an early age is associated with the high school dropout rates.
There are strong linkages between unemployment, underemployment, shortage of decent

jobs and poverty. Eradication of poverty requires sustained macro-economic stability
coupled with an enabling environment for investments that contributes to productive
employment creation.
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High poverty and unemployment levels among the youth in the country have persisted
over time and are increasingly leading to a feeling of marginalization and exclusion
among the youth. Most youth subsist on the margins of the economy or have jobs that do
not provide them with adequate means to ensure survival. This situation is aggravated by
the huge imbalance between the supply and the demand for labour, hence heightening the
sense of risk. There is increasing evidence of distress migration from the rural to urban
among the youth.
1.3 Justification for the Youth Livelihood Programme
(i) The overall economic goal of the Government of Uganda is to transform the country from
a peasant into a middle income economy by 2025. The country has had an impressive and
stable economic recovery with the growth rate averaging 6.5% over the past fifteen years.
In order to achieve this, Government has been implementing various programmes to
alleviate poverty among its population which have yielded a wide national and
international support and recognition. Despite these programmes, there are still gaps
characterized by persistent existence of extremely poor and marginalized groups.
(ii) Uganda’s rapidly growing population has exacerbated the high levels of unemployment
especially among the youth and this has exerted extreme pressure on the available
resources and job opportunities. Some of the existing job opportunities, particularly in
subsistence and the informal sector, require semi-skilled labour, which are of low
economic value and pay. There is a mismatch between the rate at which jobs are created
and entrants in the labour market most of whom are youth. There is therefore need for
pragmatic, integrated and comprehensive interventions that could empower young people
with opportunities for creation of their own enterprises thus contributing to the social
economic transformation of the country.
(iii)The Government is implementing the Universal Primary Education (UPE) and Universal
Secondary Education (USE) Programmes that provide knowledge and contribute to
increased literacy levels. Furthermore, the tertiary institutions provide skills through
programmes such as Business Technical and Vocational Education and Training
(BTVET) which have made significant contribution to alleviating unemployment
problems among the youth. The Youth Livelihoods Programme will build on the gains of
these programmes, while taking into account the needs of the youth that have not had the
opportunity to enroll for formal education. YLP takes cognizance of the fact that an
increase in the number of people that have attained higher education does not necessarily
result in more or better employment nor does it guarantee jobs. Youth require relevant
skills to keep abreast with the ever - changing demands of the labour market. There are
a lot of unemployed, energetic and enthusiastic youth in the country who if not gainfully
engaged could pose socio – economic, political and security challenges to the nation.
(iv) The Government of Uganda has in the past undertaken a number of programs intended
to address the problem of un-employment and poverty among the youth including:
Northern Uganda Social Action Plan (NUSAF2), Skilling Uganda, Youth Enterprise
Scheme, Youth Venture Capital Fund, and various programmes under the different
Government Ministries and Development Partners’ Initiatives. The Youth Livelihoods
Programme is complementary to all these interventions and will seek to strengthen the
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participation of the youth by addressing the following key challenges faced by most of
the youth programmes implemented in the country: (a) poor mobilization and
sensitization, (b) inappropriate targeting, (c) poor beneficiary selection mechanism, (d)
mismatch of skills with market demand, and (e) poor mind-set of the youth, among
others. The design of the proposed Youth Livelihoods Programme draws lessons from the
experience gained under these programs especially NUSAF2.
The Youth Livelihood Programme is therefore designed to provide strategic and

sustainable interventions for the youth to enable them effectively participate in the
National development and improve their quality of life. The Programme focuses on 3
components, namely; Skills Development, Livelihood Support, and Institutional Support.
The YLP will prioritize entrepreneurship and business management skills, personal
finance management, life skills, and mindset change as integral parts of the Livelihood
Support and Skills Support components.
1.4 The Legal Policy Framework
The Youth Livelihood Programme is informed and premised on a number of relevant

National and International legal and policy frameworks as follows: Article 32 of the
Constitution of the Republic of Uganda states that the state shall take affirmative action
in favour of groups marginalized on the basis of age and any other reason created for
purposes of redressing imbalances which exist against them.
The YLP is responsive to Uganda’s Vision 2040 statement, “A Transformed Uganda

Society from a Peasant to a Modern and Prosperous country within 30 years” and
the theme of the National Development Plan (2010/11-2014/15), “Growth, Employment
and Social-Economic Transformation for Prosperity”. The Programme is in line with
the Social Development Investment Plan (SDIP) II of the Ministry of Gender Labour and
Social Development (MGLSD) that aims at promoting employment among marginalized
groups for social transformation, as well as the National Youth Policy that recognizes
productive employment as a measure of ensuring effective participation of the youth in
economic growth and development.
The YLP is also guided by the Millennium Development Goals that commit Member
States to vigorously promote human development as the key to sustaining social and
economic progress in all countries.
Uganda as a member state of the United Nations (UN), African Union (AU), and the
Commonwealth, is obliged to implement youth programmes as stipulated in the UN
Actions on Youth, the African Youth Charter, and Commonwealth Action Plan for
Youth. Uganda is also a signatory to the Universal Declaration of Human Rights, 1948,
which guarantees everyone the right to social security in the event of unemployment or
lack of livelihood in circumstances beyond his/her control. At the regional level, Uganda
has endorsed the Livingstone Call to Action, 2006, which obliges African states to put in
place costed plans for the implementation of direct income support programmes
especially to marginalized groups.
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The YLP in addition, is guided by the National Employment Policy, the National Gender
Policy, Decentralization Policy, the Uganda National Culture Policy, Basic Education
Policy for Disadvantaged Groups, the Programme for Modernization of Agriculture
(PMA), the National Child Labour Policy and National Policy for Persons with
Disability.
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CHAPTER 2
2.0 PROGRAMME DESCRIPTION
2.1 Introduction
The Youth Livelihood Programme (YLP) is a Rolling Government of Uganda

Programme, targeting the poor and unemployed youth in all the districts in the country.
The Programme will be implemented under the Ministry of Gender, Labour and Social
Development (MGLSD). It will be financed initially from Government own resources
(with a possibility of development partners’ support in the future). The initial budget
estimate for the Rolling Programme is Uganda Shillings 265 billion in the next 5 years.
YLP is a community demand-driven Programme that will be implemented with guidance

from the Central Government and the Local Governments. The funds will be advanced
to the Youth Interest Groups (YIG) in form of a Revolving Fund in order to increase
outreach and enhance sustainability of the Programme.
2.2 Programme Objective

The overall Programme Development Objective (PDO) of the YLP is to empower the
target youth in Uganda to harness their socio-economic potential and increase self-
employment opportunities and income levels.
Specific Objectives
(i) To provide youth with marketable vocational skills and tool kits for self-
employment and job creation.
(ii) To provide financial support to enable the youth establish Income Generating
Activities (IGAs).
(iii) To Provide the youth with entrepreneurship and life skills as an integral part of
their livelihoods.
(iv) To provide youth with relevant knowledge and information for attitudinal change
(positive mind set change).
2.3 Key Performance Indicators (KPI)
The PDO will be measured by the following Indicators:

(i) Number of youth benefiting from the Youth Livelihoods Programme.
(ii) Average increase in the income levels of the youth (%)
(iii) Youth in self- employment after programme support (%);
(iv) Youth equipped with entrepreneurship skills and have opened their own
businesses (%);
(v) Number of youth trained in life skills
(vi) Number of active youth groups formed through a participatory process
(empowerment indicator)
(vii) Level of satisfaction of the targeted youth with the quality of the project processes
and implementation (%).
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2.4 Target Population and Targeting Mechanism
The principle target beneficiaries of the Programme will be the unemployed youth aged
between 18 to 30 years. Specifically, the Programme will target the following categories
of youth:
(i) Dropouts from school and training institutions

(ii) Youth living in slums, city streets, high risk and impoverished communities
(iii) Youth that have not had the opportunity to attend formal education
(iv) Single parent youth
(v) Youth with disability
(vi) Youth Living with HIV/AIDS
(vii) Youth who have completed secondary school
(viii) Graduates of Tertiary Institutions (including University).
Special consideration will be accorded to the female youth who should constitute at least
30% of the participants to be selected under the Programme. Deliberate and specific
efforts will be made to offer targeted support to Special Interest Groups youth with
disabilities and University Graduates.
The targeting methodology will involve a combination of the following approaches; (i)
geographical targeting by the Ministry of Gender, Labour and Social Development
(MGLSD); based on existing data including poverty, youth population, unemployment
etc.; and (ii) community based targeting; based on the socio-economic status of the
individual youth e.g. present income source, period out of employment, number of
children, etc.
2.5 Programme Period and Geographical Coverage
The Youth Livelihoods Programme will be implemented starting in the Financial Year
2013/2014 in all the current 112 districts (including Kampala City) of the Republic of
Uganda.
2.6 Operating Principles

The Programme operations will be premised on the following underlying principles
among others:
(a) Demand Driven:-The youth will be responsible for initiating the requests for the
livelihood support and vocational skills training in accordance with their needs and
preferences.
(b) Active Youth Participation and Ownership:-The youth shall participate in the
entire planning and implementation process of the programme and be accountable
for the results.
(c) Gender Responsiveness and Promotion of Equity:-The Programme will ensure

fair and just share of the benefits to the target beneficiaries. Efforts shall be made to
ensure that the female youth constitute at least 30% of the beneficiaries under the
Livelihood Support and Skills Development Components.
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(d) Equitable Geographical Distribution:-The YLP shall ensure regional equity
in the distribution of the Programme resources across the target districts, sub-
counties and communities.
(e) Public-Private Partnership:-The implementation of the YLP shall promote

collaboration and cooperation between the public and private sector.
(f) Non-involvement of Child Labour:-No child shall be employed in any YLP

supported activities.
(g) Environmental Integrity: -All YLP interventions shall ensure preservation and
sustainability of sound environmental conditions.
(h) Viable and Sustainable Investments:-The livelihood enterprises shall be

subjected to relevant viability and sustainability analyses to ascertain the likely
level and quality of returns to the beneficiaries.
(i) Provision for Youth with Special Needs:-The Programme interventions will be
sensitive to and have special considerations for the Youth with Disabilities
(YWD) as much as possible.
(j) Cultural Sensitivity:-All interventions shall consider and build on the positive
cultural norms of the beneficiary Communities (do-no harm/respect).
(k) Utilizing Existing Institutions:-The Programme shall use relevant existing

institutions while building on ongoing programmes.
(l) Direct Flow of Funds to the Individual Youth Group Projects:-Funds will be
disbursed directly to the individual Youth Interest Groups Bank Accounts, in
Commercial Banks nearest to them.
(m) Community Procurement:- The beneficiaries will be responsible for procurement

of their productive assets and tools by themselves. The Contracts Committee of
MGLSD will handle all procurements of equipment such as vehicles, motorcycles,
computers, bicycles and others that might be required for use at national level and
for distribution to the districts and sub – counties.
(n) Revolving Support: - The grants to the communities will the administered in form
of revolving funds among the target Youth Interest Groups. This way, beneficiary
outreach will be expanded and the sense of commitment will be instilled in the
beneficiaries, while promoting sustainability of the Programme.
2.7 Programme Financing and Resource Allocation Criteria

The Programme will initially be financed by the Government of Uganda to the tune of
UGS 265 billion over the first 5-Year implementation period. Additional financing may
be sought from development partners depending on the need. The Fund will be allocated
among the 3 Programme Components as follows:
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(i) Skills Development Fund (20%)
(ii) Livelihoods Support Fund (70%).
(iii) Institutional Support Fund (10%)
The District and Sub County resource allocation for the Livelihoods Support Component
and Skills Development Fund will be based on three weighted parameters as follows:
(i) Poverty Count (40% weight);

(ii) Youth Population (45% weight); and
(iii) Land Area (15% weight).
Project Grants
This refers to the Programme funds that will be used to finance approved youth projects
under the Livelihood Support and Skills Development Components. Funds will cover the
cost of inputs and project specific trainings.
Each Youth Interest Group Project under both the Livelihood Support and Skills
Development Components will be financed to a maximum of UGX 12.5 million and will
be approved by the District Technical Planning Committee (DTPC). The amount to be
approved for each Youth Interest Group will depend on the group size, type of enterprise
and cost of the inputs.
Any Project whose value is in excess of this amount, which is deemed absolutely
necessary and justifiable, will be recommended by the DTPC and District Executive
Committee (DEC) for the approval of the National Technical Working Committee
(NTWC). Such projects will be subject to an absolute cap of UGX 25.0 million. 5%
Service fee will be levied on the project grants whose re-payment goes beyond one year.
This fee will cater for the cost of inflation in the course of implementation of the
Programme.
2.8 Project Eligibility Criteria

The Youth Interest Group Project eligibility criteria shall include the following:
a. The beneficiaries fall within the youth age bracket (18-30 years). Evidence may be
sought through relevant documents (e.g. birth certificates, baptismal tickets and
immunization cards, as applicable) or testimonies of peers, elders and opinion
leaders within the communities where the youth ordinarily reside.
b. All the members of the Youth Interest Group are bona fide residents of the location
(village) under which the Project is being approved.
c. All the Youth Interest Groups are transparently selected in a community

participatory process based on the selection criteria set by the Programme.
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d. Evidence that the members of the Youth Interest Group fully participated in the
identification and planning processes for the Project and group formulation shall be
voluntary. There should be evidence that the enterprise selected has undergone
adequate viability and sustainability analyses guided by the Technical Experts, with
a clear Business Plan and Repayment Plan for the Revolving Fund.
e. Evidence that the Enterprise selected has undergone the full generation process
including appraisal and approval by the Sub-county and District Local Governments
respectively, based on the Programme Guidelines.
f. The enterprise must have a clear physical address/location. Where the enterprise
requires land, the ownership and legal status of the land should be established
through a valid land agreement/or land title.
g. The enterprise should have a reasonable maturity period that permits re-payment of
the Interest-free Revolving Fund within a time period of one (1) year. Service fee of
5% shall be levied on all repayments that exceed 1 year
h. The enterprise has a good implementation and sustainability plan.
i. At least eighty-percent (80%) of the budget for the enterprise should go into the core
inputs of the enterprise as opposed to essential and non-core inputs and
administration expenses.
2.9 Environmental and Social Safeguards

The youth communities are expected to implement projects that are affordable and within
their capacity to manage and maintain. All projects are required to comply with the
Environmental and Social Management Framework (ESMF) and Resettlement Policy
Framework (RPF) approved by the Government of Uganda. Environmental mitigation
measures will be provided for within each youth project budget. Any resettlement
and/relocation issues will be resolved before any Youth Project is approved.
2.10 Sustainability
The revolving nature of the Youth Livelihood Programme will ensure sustainability
through the cash and in-kind refunds and re-disbursement.
2.11 Key Features of the Design of the Youth Livelihood Programme
(i) The implementation of the YLP is mainstreamed in the Government structures and
systems at both the national and local government levels.
(ii) The YLP has adopted the CDD model that ensures effective participation of the
target youth population and all key stakeholders from the community to the
national level in decision making in the realization of their preferred choices. The
youth projects will be generated in a “bottom-up” approach.
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(iii) The YLP uses a community targeting mechanism to ensure that beneficiary
selection is conducted in an open and transparent manner.
(iv) YLP focuses on marketable vocational skills and viable income generating
activities for the target youth irrespective of the levels of education
(v) The YLP support will be administered in form of revolving funds. This serves as
an in-built mechanism for Programme sustainability and a guarantee for longer
term benefit to the target population The revolving funds are interest free and do
not require any collateral to access. The Programme relies on intra and inter-group
peer pressure as a means of ensuring compliance by all beneficiary groups.
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CHAPTER 3
3.0 PROGRAMME COMPONENTS
The YLP has three components namely:
(a) Skills Development (SD) Component
(b) Livelihoods Support (LS) Component
(c) Institutional Support (IS) Component
3.1 Skills Development (SD) Component

The Skills Development Component will support the development of relevant livelihoods
skills that create opportunities for self-employment among the youth. The component will
provide hands-on training for the youth in marketable trades identified by the youth and
provide basic start-up tool kits for the youth who successfully complete the trainings.
Entrepreneurship/Business skills and life skills will be integral parts of the Vocational
Skills Trainings. Appropriate follow-up support will be provided to the Youth by the
relevant subject matter specialists at the District level. The skills training will be
undertaken by selected competent master craftsmen or training institutions with tailor-
made training modules to be developed.
Table 1: Some Investment Options for Skills Development Component
Component Recommended Investment Options/Menu

Skills Development - Masonry/Brick Laying,
- Carpentry and joinery
- Hairy dressing/ Cosmetology,
- Tailoring/fashion and design,
- Metal fabrication,
- Clay Molding/Pottery/Energy Saving Technology,
- Bicycle Repair,
- Motor Mechanics,
- Shoe making/repair,
- Agro – processing,
- Bakery/Cookery
- Electrical Repairs,
- Borehole Repairs
- Weaving and embroidery
- Video-audio editing
- Leather works
- Computer use and application
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3.2 Livelihood Support (LS) Component
The Livelihood Support (LS) Component is intended to finance productive assets for
income generating activities initiated by the youth. All the beneficiaries under the LS
Component will receive basic training in Entrepreneurship/Business skills and life skills
and appropriate follow-up support by the relevant subject matter specialists.
Table 2: Some Investment Options for Livelihoods Support Components
Component Recommended Investment Options/Menu

Livelihoods Support - Dairy production,
- High value crops,
- Poultry/egg production,
- Piggery,
- Improved goats,
- Aquaculture/integrated farming
- Labour-saving technologies e.g. animal traction
- Apiary - honey production
- Agro-forestry/tree propagation
- Post-harvest handling
- Value addition & marketing
- Produce Buying and Selling
3.3 Institutional Support (IS) Component

The Institutional Support Component is intended to improve the technical, administrative
and managerial capacity of the key implementers of the Programme, and promote good
governance at all levels of Programme implementation. The Component has two sub-
components namely:
(i) Programme Implementation Support (PIS) sub-component that will help strengthen the
capacities of the various implementers at the Ministry of Gender, Labour and Social
Development, Local Governments and Community levels to ensure efficient and effective
implementation, supervision, monitoring and evaluation of Programme activities.
Elements of Programme Implementation Support

a) Project Co-ordination, Collaboration and Linkages.
b) Technical Support Team (TST).
c) Capacity Building and Training.
d) Knowledge Dissemination/Development Communication
e) Monitoring & Evaluation.
f) Management Information System (MIS).
The Programme will set up a lean Technical Support Team (TST), to complement and help
strengthen the capacity of the MGLSD to implement the Programme in a more efficient
manner. The TST will be headed by a Programme Manager and will comprise of skilled
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experts in fields such as livelihoods, skills training, monitoring and evaluation,
communication, and management information systems. The TST will be sourced through a
competitive process. The TST will work with the existing staff in MGLSD and the Local
Governments to ensure a quick roll-out of Programme implementation in all the districts.
The key functions of the TST will include the following:
a) Develop Programme Component Handbooks, User Guides and Training Modules, based
on the Programme Operations Manual.
b) Provide day-to-day technical implementation support, monitoring and evaluation at the
national, local government and community levels.
c) Prepare Programme Annual Workplans and Budgets
d) Receive, review for compliance, and recommend youth project proposals for financing.
e) Work with Districts in the development and review of Programme delivery benchmarks
and facilitate the decentralized management of YLP activities.
f) Prepare Quarterly and Annual Programme Implementation Progress and Financial
Reports
g) Document achievements, best practices, lessons and challenges to inform local
government and national planning processes.
h) Based on lessons learnt from similar Programmes, the TST will be critical in supporting
the mainstream staff in the MGLSD and the Local Governments to ensure effective
Programme roll-out, coordination, provision of technical support, monitoring and
financial management.
(ii) Transparency, Accountability And Anti - Corruption
(a) The MGLSD will work in collaboration with the Inspectorate of Government in the
implementation of the Transparency, Accountability and Anticorruption sub-
component.
(b) The Programme will have strong Grievances Handling and Feedback Mechanism.
The Sub-county Chiefs, Chief Administrative Officers, Resident District
Commissioners, Principal Inspectorate Officers (IGG-Regional Offices) and the
Permanent Secretary, MGLSD will be the grievance focal points. Grievance reporting
and feedback mechanisms will be disseminated through stakeholders’ mobilization
and sensitization programmes, and IEC messages.
(c) The Information, Education and Communications programme will be tailored to
promote positive mind-set and attitude change among the youth, as a cross-cutting
issue in all the Components of the Programme.
(d) Transparency, Accountability and Anti-Corruption (TAAC) sub- component is
intended to promote good governance at all levels of Programme implementation.
The TAAC sub-component will be implemented in collaboration with the
Inspectorate of Government. The main focus will be on the preventive measures
rather than investigation and prosecution.
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(e) The Strategies for TAAC Program will include:
i) Transparent beneficiary selection, Project approval, disbursement,

implementation/procurements and accountability processes at community, local
government and national levels;
ii) Systems of immediate reporting of grievances and feedback to the affected
persons;
iii) Rewards and sanctions;
iv) Use of participatory monitoring tools (e.g. Community Score Card, Barazas, etc.);
v) Effective Development Communication-well timed and targeted IEC messages
vi) TAAC monitoring matrix
(f) Sanctions
Under the TAAC, sanctions will be instituted for any violation of guidelines in the
implementation of the programme. These will include:
i) Invoking Government Civil Service Standing Orders for Civil Servants.

ii) Subjecting individuals, communities and/or Local Governments to nationally
acceptable practices of charges and committing in cases of proven corrupt
practices.
iii) Suspension of disbursements to Local Governments and communities whose
overall compliance level falls below the set fiduciary requirements.
iv) Naming and shaming of individuals, communities and Local Governments on
public media ((Newspapers, FM-Radios, TV etc…).
(g) Rewards
Issuing certificates of recognition and recognizing good performance on public media

(Newspapers, FM-Radios, TV etc…) will be instituted as a reward mechanism to
promote good performance and compliance.
14
CHAPTER 4
4.0 PROGRAMME IMPLEMENTATION ARRANGEMENTS
The Youth Livelihoods Programme (YLP) implementation will be based on the following
arrangements:
4.1 General Arrangements

(i) Community Demand-Driven Development (CDD) Approach will be
employed with appropriate guidance from the Central Government and
Local Governments. This will allow the youth participate in identification,
planning, implementation, management monitoring and evaluation of their
Programme activities in their respective communities.
(ii) Mainstreaming into Government structures and operations at the Central

Government and Local Government levels. The PS/MGLSD will be the
overall Accounting Officer, while the Chief Administrative Officers will be
the Accounting Officers for the Programme in their respective districts.
(iii) The Ministry of Gender, Labour and Social Development will sign MoUs with
implementing District Local Governments. The MoUs will clearly stipulate
the roles, responsibilities and obligations of the parties involved. The
Districts will in turn sign Financing Agreements with each Youth Interest
Group approved for funding under the Programme.
(iv) Support to the youth under YLP will be accessed through Youth Interest
Groups (YIGs). YIP will have 10-15 members for ease of management and
maintenance of group cohesion, while at the same ensuring wider coverage of
the deserving youth. In exceptional circumstances a youth group that does not
conform to the prescribed group size may be considered in its own special
merit by the National Technical Working Committee and PS/MGLSD.
(v) While the support will be accessed by the youth through their YIGs, at the
group level, 2 scenarios will arise due to the varying nature of the enterprises
and inputs to be financed, namely: (i) enterprises that can best be managed as
a group e.g. metal fabrication, carpentry, hair-dressing, shoe making, fish
farming, value addition/agro-processing etc., and (ii) enterprises that by
nature of their inputs can best be managed at individual level e.g. dairy cattle,
goat rearing, piggery, tailoring, bicycle repair, etc. For scenario (i) the
enterprises will be managed as a group, while for scenario (ii), the productive
assets will be shared equally by the individual beneficiaries after procurement,
to allow them manage their mini-enterprises at individual level. However, in
scenario (ii) arrangements must be made to ensure that some activities such as
15
meetings, monitoring of individual members’ investments, savings, trainings,
repayment of the revolving fund etc., are maintained at the group level.
(vi) Selection of beneficiaries will be done in an open and transparent manner

through community participatory mechanisms facilitated by the Sub-county
Community Development Officers.
(vii) Youth Projects Implementation will be done by the beneficiary youth groups
themselves, spearheaded by their Youth Interest Group Committees namely:
the Youth Project Management Committee (YPMC) and Youth Procurement
Committee (YPC) closely monitored by the Social Accountability Committee
(SAC). The Projects implementation will receive technical support and
guidance from the relevant sector experts at every stage of implementation.
(viii) The YPMC, YPC and SAC will receive basic training in Project
implementation and management including: records keeping, procurement,
financial management, reporting and accountability, monitoring and
evaluation.
(ix) All the beneficiaries will receive training in entrepreneurship/business

management skills, life skills, personal finances, group dynamics and
leadership skills. Regular follow-up visits to offer technical support and
advisory services will be made by subject matter specialists.
(x) All the beneficiaries will receive training in their respective project specific
skills e.g. Animal Health Management, Apiary Management and Value
Addition etc.
(xi) All beneficiaries of the Vocational Skills Development Component will

receive basic start-up tool kits to enable them apply the skills acquired.
(xii) Fund disbursements for the approved Youth Projects will be done directly into
the individual Youth Interest Groups Accounts in any Commercial Bank of
their choice within the District. The Youth Interest Group Project Accounts
will be managed by the Youth Project Management Committee (YPMC).
(xiii) The Chairperson of the YIG, Sub-County Treasurer (Sub-Accountant), and

Sub-County Chief shall be the signatories to the Bank Account. In case of
Kampala Capital City Authority, the Chairperson of the Youth Interest Group,
the Division Town Clerk and or Division Treasurer will be signatories to the
Account. The CAO will not be a signatory to the Youth Group Accounts, but
shall have express powers to access information on the operations of the
accounts. The CAO can suspend transactions on the account in consultation
with the PS/MGLSD, in case of abuse. The Chairpersons of YIG will be the
mandatory signatory to the Community accounts
16
(xiv) Each withdrawal or payment of funds from the Youth Interest Group
Accounts shall be based on activity plans and budgets approved by the
Group backed by minutes of the Group meetings. The Chief Administrative
Officer (or a person designated by the CAO) shall issue clearance to the
Commercial Banks for payments to be effected.
(xv) For any further payment to be made from the Youth Accounts Interest Group
Account, the group should present accountability for funds drawn/paid in the
previous withdrawals.
(xvi) Each district will open two separate accounts for YLP funds i.e. YLP Youth
Grants Account and YLP District Operations Account. The YLP Youth
Grants Account will transmit funds directly to the approved Youth Interest
Groups Accounts, while the YLP District Operations Account will finance
administration expenses at the district and sub-county levels.
(xvii)The Youth Grants shall be administered in an interest-free Revolving Fund

arrangement. The grace period and repayment period will depend on the
nature of the enterprise. Payments made within one year shall not attract the
service fee. Overall period of repayment should not exceed 3 years.
(xviii) The MGLSD will work in collaboration with the Inspectorate of

Government in the implementation of the Transparency, Accountability and
Anticorruption sub-component.
(xix) The Programme will have strong Grievances Handling and Feedback
Mechanism. The Sub-county Chiefs, Chief Administrative Officers,
Resident District Commissioner, Principal Inspectorate Officers (IGG-
Regional Offices) and the Permanent Secretary, MGLSD will be the grievance
focal points. Grievance reporting and feedback mechanisms will be
disseminated through stakeholders’ mobilization and sensitization
programmes, and IEC messages.
(xx) The Information, Education and Communications programme will be tailored

to promote positive mind-set and attitude change among the youth, as a
cross-cutting issue in all the Components of the Programme.
17
4.2 Youth Interest Group (YIG)
A Youth Interest Group (YIG) refers to a voluntary group of individual youth that
come together in pursuit of solutions to their common needs. All the support to the
youth under the YLP will be accessed through YIGs. The recommended size of a
YIG is 10-15 members, a size that is small enough and within the capacity of the
group to self-manage and realize meaningful impact. Each YIG will have at least
30% female youth.
Each YIG will elect 3 committees among themselves to handle the day-to-day
running of their group activities. The 3 committees include the Youth Project
Management Committee (YPMC), Youth Procurement Committee (YPC) and
Social Accountability Committee (SAC). All the YIG members are entitled to equal
benefits under the Programme.
The mobilization and formation of the YIGs will be facilitated by the Sub-county
Community Development Officers (CDOs) and Assistant Community Development
Officers (ACDOs). The CDOs and ACDOs will also be responsible for providing
technical support to the YIGs and coordination of technical support to be provided
to the YIGs by the various sector experts and subject matter specialists at the Local
Government level.
The YIGs will be encouraged and supported to grow into community savings
schemes such as SACCOs, marketing associations and other forms of
community/sub-county/district economic federations.
4.3 Guarantors for Youth Interest Groups

The YIGs shall secure a credible personality in their community to recommend
them for the support under YLP. The members of each Youth Interest Group (YIG)
will co-guarantee one another for purposes of ensuring successful implementation
of their approved project.
The major role of the Recommenders is to (i) certify that the youth selected are bona
fide residents of their respective areas; (ii) ensure that the funds provided to YIG are
used for the purpose for which they are approved; (iii) report any potential violation
of YLP guidelines by individual youth or YIG in the course of implementation of
their Projects; and (iv) work with the Programme Management to ensure that the
beneficiary YIGs meet their obligations of repayment of the revolving fund.
The following mechanisms will facilitate recovery of the revolving funds :

a) Members of each YIG will co-guarantee themselves to generate internal peer
pressure on every member to meet his/her obligations within the group.
b) External pressure from the Youth Groups expecting to benefit in the subsequent
rounds of disbursements.
c) Reward mechanism as an incentive will encourage the groups to pay back.
d) Naming and Shaming non-compliant beneficiaries or stakeholders.
e) Sanctions by IGG and Police will be used as a last resort.
18
4.4 Project Implementation by Youth Programme Management Committee
(YPMC)
The responsibility of implementation of Youth Projects under YLP rests on the
YIGs. The Youth Project Management Committee (YPMC) will have a delegated
authority to manage the project implementation processes on behalf of the group.
The YPMC will convene YIG meetings on regular basis (at least once every month)
to approve activity plans, budgets, procurement plans, report progress, present
accountability and seek concurrence of the members on issues of Project
implementation.
Appropriate Information, Education and Communication (IEC) and training for the
YPMCs will be undertaken to enhance their capacity to implement the projects
efficiently and effectively. The District and Sub-county Local Government technical
staff will provide the necessary technical guidance to the YPMCs in the course of
implementation of their Projects.
The capacity enhancement effort for the YPMCs and beneficiary groups will focus
mainly on the following areas:
a) General project management
b) Group dynamics and group cohesion
c) Communication skills
d) Leadership skills
e) Planning skills
f) Organization skills
g) Basic records management
h) Basic financial management
i) Community Procurement Procedures
j) Reporting and Accountability
k) Basic business development skills
l) Project–specific skills
The inability of the youth group to cope with or demonstrate project management
capacity as stated above will not be a deterrent for such a group to access funding.
The capacity of the group to implement the project through its YPMC will be
determined during the youth action planning process where youth capacity gaps will
be identified and appropriate action to overcome the deficiency are planned.
Note: Where it is confirmed that the capacity of a YIG is so limited that it will not
be able to implement the Project through its YPMC, the Sub-county will agree with
such a YIG to work out an arrangement to support them in implementation through
the Sub-county Local Government or a Competent NGO/ CBO/CSO, with a known
good track record.
19
4.5 Beneficiary Selection
The selection of the youth to benefit under YLP will be done in a transparent
manner, through community participatory mechanisms facilitated by the Sub-
county CDO and ACDO at the community level.
There shall be a selection committee composed of the Sub-County Chief as the
Chairperson and; other members shall include the Chair of the Sub-County Youth
Council, Community Development Officer, LC I Chairperson and a prominent
member of the Community.
The Chairperson of the Youth Council within the communities and the Chairperson
LC1 will confirm that the selected youth are bona fide Ugandans who reside within
the respective communities. The selection process will take into account the target
beneficiaries, access criteria, local knowledge on the socio-economic status of
individual youth e.g. present income source, period out of employment, number of
children, any other support that the youth may have received under other existing
programmes etc. All the youth selected must be bona fide residents of the areas
where the process is being conducted.
The youth selected through the community process will constitute the Youth
Interest Group that will be facilitated further by the CDO and relevant sector
experts to identify potential projects, undertake viability assessments and generate
the most suitable Project Proposal for funding.
The names, particulars and passport-size photographs of the beneficiaries selected
will be submitted to the Sub-county Chief as part and parcel of the Project Proposal
file for desk and field appraisal by the Sub-county Technical Planning Committee
(STPC). For purposes of continuous involvement of the Youth and ensuring their
representation in Programme processes, the Sub-county Youth Council Chairperson
will be co-opted into the STPC during the appraisal of the Project Proposals.
The STPC will recommend the approved Youth Project Proposals (including the
beneficiaries) to the Sub-county Executive Committee for endorsement, before
submission to the District for approval.
4.6 Funds Flow

The Programme shall have one Designated Account denominated in Uganda
Shillings opened at the Bank of Uganda. From the Designated Account at BoU,
funds will be disbursed to Special District Youth Projects Account, Districts
Operations Account, and MGLSD Institutional Support Account.
The funds from the District Youth Projects Account will be disbursed directly to the
individual Youth Interest Group Projects Accounts for implementation of the
approved Youth Projects, while the funds from the District Operations Account will
be used to finance Project related administrative expenses at the District and Sub-
county/Municipality Division levels and the funds from the MGLSD Institutional
Support Account will finance operations expenses at the national level.
20
YIG Project Accounts
(i) Fund disbursements for the approved Youth Projects will be done directly into
the individual Youth Interest Groups Accounts in Commercial Banks through
the District. The Youth Interest Group Project Accounts will be managed by
the Youth Project Management Committee (YPMC).
(ii) The Chairperson of the Youth Interest Group, Sub-County Treasurer (Sub-
Accountant) and Sub-County Chief shall be the signatories to the Bank
Account. The CAO will not be a signatory to the Youth Group Accounts, but
shall have express powers to access information on the operations of the
accounts when and where necessary. In case of Kampala Capital City
Authority and Municipalities, the Signatories will be the Chairperson of the
Youth Interest Group, the Division Town Clerk and or the Division Treasurer
21
Fig 1: Funds Flow from National to Youth Interest Groups Level
MGLSD – YLP
ACCOUNT (IN BOU)
BOU)
Disbursement to
Districts for Projects &
Operations
MGLSD YLP INSTITUTIONAL

SUPPORT ACCOUNT
DISTRICT YOUTH PROJECTS DISTRICT YLP

ACCOUNT OPERATIONS ACCOUNT
ACCOUNT
SUB-
SUB-COUNTY
OPERATIONS ACCOUNTS
YOUTH PROJECTS ACCOUNTS
22
–4.8 Monitoring and Evaluation
(a) Monitoring and Evaluation (M&E) will be achieved through harmonization of
the existing M&E sub-systems and linking them to the Social Development
Sector M&E Framework. The Youth Livelihoods Programme monitoring and
Evaluation system will take cognizance of the National Integrated Monitoring
and Evaluation Strategy. A functional database/statistics will be created and
the capacity of the Ministry Staff and District Focal Point officers will be built
in M&E.
(b) At the end of two and half years, a mid-term evaluation of the programme will
be conducted to assess the performance of the programme, review lessons
learned, establish best practices and determine the level of returns from the
revolving funds. The following will be used assess performance:
(i) M&E strategy;

(ii) Results Framework;
(iii) Comprehensive M&E plans;
(iv) Internal and External periodic assessments and evaluation; and
(v) Participatory Community Monitoring and Evaluation Approaches.
23
CHAPTER 5
5.0 PROJECT CYCLE AND BENCHMARKS
The YLP has two pre-project cycle stages and 8 project-cycle as follows:
5.1 Pre-project Cycle Stages
(a) Central Government Consultation and Guidance
Prior to, and throughout Programme implementation, the MGLSD will consult
with and receive guidance from the sector/line ministries in matters including,
policy, sector priorities, sector standards and norms, and enterprise selection.
Accordingly, Programme implementation will follow sector norms and

standards as approved by the Central Government. In areas where such norms
and standards do not exist, MGLSD will work hand in hand with the relevant
arms of government to develop them.
(b) Mobilization and Sensitization
At this stage, MGLSD and Local Governments (LGs) will undertake awareness
creation among the key stakeholders of the Programme at national, district,
sub-county and community levels. This will help create a good understanding
of the Development Objectives, access criteria, implementation modalities and
inspire stakeholders to actively participate in Programme implementation.
The awareness creation will be done through electronic, print and traditional
media, workshops, seminars and community meetings as an ongoing
undertaking. The sensitization and mobilization campaigns are expected to
initially stimulate community interest in the YLP support as well as promote
effective stakeholder participation, transparency and accountability in
Programme implementation throughout the cycle.
The Youth will express their interest in YLP support in form of Project Interest
Forms (PIFs) that shall be distributed free of charge. The distribution of PIFs
will be the responsibility of the Sub-County Chief and Community
Development Officers (YLP Focal Persons designated by the Sub-county
Chief). The interested Youth will receive the PIFs from their respective Sub-
county Headquarters where a Register shall be maintained to record
distributions and submissions of the PIFs.
24
5.2 Project Cycle Stages
Table 3: Project Cycle Benchmarks
Stage Key Tasks Responsibility Centre/Key Max.
Participants Duration
1.Sensitisation & - Clarifying objectives, investment options, - Youth MPs Ongoing
Mobilisation target population, access criteria & - National Youth Council
implementation modalities Executive Committee
- Encouraging stakeholder participation - Statehouse Youth Desk
- Inspiring & creating determination among - PS/MGLSD
the target population - RDCs
- Issuing and Receipt of Project Interest - District Councils
Forms by the Sub-county CDO - District Youth Councils
- CAOs
- Sub-county Chiefs
- CDOs
- Youth/Communities
2.Identification & - Identifying & prioritizing investments areas - CDOs Within 7 days
Preparation that create self-employment and income - District/SC Sector
generation opportunities by the youth Experts
- Selecting beneficiaries - Sub-county Youth
- Preparing subproject proposals and business Chairpersons
plans - Youth/Communities
3.Desk Appraisal - Checking completeness of documentation - Sub-county Chiefs Within 7 days
- Reviewing Project generation process - Sub-county Technical
- Checking conformity with sector standards Planning Committee
& norms (STPC)
- Checking conformity with YLP guidelines - Sub-county Youth
- Checking appropriates of budgets/business Chairpersons
plans - CDOs
4.Field Appraisal - Verifying information on proposal file - Sub-county Chief Within 7 days
- Checking appropriateness of targeting - Sub-county Technical
- Confirming existence of youth selected Planning Committee
- Confirming participation of the youth in (STPC)
planning - Sub-county Youth
Chairpersons
- Recommending youth projects for approval
- CDOs
5.Project Approval - Reviewing Youth Projects documentation - CAO Within 7 days
- Reviewing Project generation and appraisal - District Technical
process Planning Committee
- Ascertaining conformity with sector norms (DTPC)
& standards - Chairperson District
- Ascertaining compliance with YLP Youth Council
guidelines - District Executive
- Recommending Youth Projects for funding Committee
- Communicating approvals to the - PS/MGLSD
beneficiaries
6.Fund Disbursement - Reviewing Project funding requests & - PS/MGLSD Within 21 days
approval process - Commissioner
- Checking compliance with Project financial Youth/MGLSD
guidelines - YLP/TST
- Ascertaining that Financing
agreements/MoUs have been signed
25
Stage Key Tasks Responsibility Centre/Key Max.
Participants Duration
- Ascertaining that the required beneficiary
accounts have been duly opened
- Transferring funds to approved beneficiary
Youth Group Accounts
- Communicating disbursements to the
beneficiaries
7.Implementation - Project launch and respective community - Youth Project Within 270
site Management Committees days (9
- Start of physical implementation of Project (YPMC) months)
activities by the Youth. - STPC/DTPC
- Provision of technical support to the youth
by Sector Experts
- Periodic reporting on progress in
implementation
8.Monitoring & - Field visits to Project sites - PS/MGLSD/TST Ongoing
Evaluation - Providing technical support & guidance to - RDCs
implementers - CAOs/District Planner
- Tracking progress towards meeting the - SCCs/CDOs
Project objectives - Chairs of District, Sub-
County Youth Councils
9.Commissioning - Issuing Project completion certificates to - District Chairpersons Within 7 days
the youth - RDCs
- Formal handover of Project assets to the - CAO
beneficiaries - District and Sub-County
- Inspiring beneficiaries to better their lives Youth Chairpersons
26
Figure 2: Project Cycle
1. MOBILIZATION & SENSITIZATION

- Clarifying objectives, investment options, target population, access criteria &
implementation modalities
- Encouraging stakeholder participation
- Inspiring & creating determination among the target population
9. COMMISSIONING 2. IDENTIFICATION & PREPARATION

-Receipt of project completion reports - Identifying & prioritizing investments areas that create self-
- Issuing project completion certificates to the youth employment & incomes for the youth
- Formal handover of project assets to the beneficiaries - Selecting beneficiaries
- Inspiring beneficiaries to better their lives - Preparing Project Proposals & Business Plans
8. MONITORING & EVALUATION 3. DESK APPRAISAL

- Field visits to project sites
- Checking completeness of documentation
- Providing technical support & guidance to implementers
- Reviewing project generation process
- Tracking progress towards meeting the project objectives
- Checking conformity with sector standards & norms
- Checking conformity with YLP guidelines
7. IMPLEMENTATION
- Project launch at the Youth project site 4. FIELD APPRAISAL
- Physical Implementation of approved project activities - Verifying information on proposal file
- Provision of technical support to youth - Checking appropriateness of targeting
- Confirming existence of youth selected
- Confirming participation of the youth in planning
6. FUND DISBURSEMENT
- Reviewing project funding requests & approval process 5. APPROVAL
- Checking compliance with project financial guidelines
- Ascertaining that Financing agreements/MoUs have been signed
- Reviewing project documentation
- Reviewing project generation and appraisal process
- Ascertaining that the required beneficiary accounts have been duly
- Ascertaining conformity with sector norms & standards
opened
- Ascertaining compliance with Project guidelines
- Transferring funds to approved beneficiary accounts
27
CHAPTER 6
6.0 FUND REVOLVING MECHANISM
The Youth Grants under YLP will be administered as Interest-free Revolving Funds to
ensure sustainability of the Programme. The grace period and repayment period will
depend on the nature of the enterprise. Any repayment that goes beyond one year will
attract a Service fee of 5% to cater for inflation. Overall, the Principal and Service fee will
be paid within a period not exceeding 3 years.
The revolving process will be structured as follows:

(i) All the Project Grants disbursed to each Youth Interest Group (YIG) will be treated as
a Revolving Fund to be repaid in accordance with the Project Financing Agreement
between the District Local Government and the beneficiary Youth Interest Group,
witnessed by the Area Resident State Attorney.
(ii) The scheduling of the repayment of the Revolving Fund will be based on the Project
maturity period, Business Plan and cash flow projections generated at the design of
the Project (or otherwise reviewed). Copies of the re-payment plans/instalments
agreed upon shall be submitted to PS/MGLS.
(iii) Repayments will be made in-cash or in-kind. The youth undertaking enterprises such
as piggery, heifer rearing, goat rearing etc., where off-springs will be produced will
have the option of repayment in-kind, while others involved in enterprises such as
vocational skills development, animal traction, fish farming, crop production etc. will
make their repayments in cash.
(iv) Where repayments are made in kind, arrangements shall be made to have a relevant
sector expert inspect the inputs being used for repayment to ensure that they meet the
agreed standard specifications. The inputs will be passed on to a new YIG which will
have chosen a similar enterprise and has been prepared well enough to participate in
programme implementation
(v) The repayments may be re-scheduled in case of genuine and exceptional

circumstances beyond the control of the YIG. This will be done in mutual agreement
between the District Local Government and the YIG, in consultation with the
PS/MGLSD
(vi) With the approval of the Accountant General, Each District will open a special
Collection Account for the YLP Revolving Fund (separate from the Account handling
direct Grant Disbursements from MGLSD.
(vii) All YIGs will deposit their repayments into the District Collection Account for the
Revolving Fund and receive a receipt from the District for every instalment made.
28
(viii) The District shall maintain a ledger for each YIG for purposes of monitoring and
reporting on the repayments.
(ix) MGLSD will open a National Revolving Fund Collection Account in Bank of Uganda
to receive the repayments from the District Collection Accounts. This arrangement
will permit proper planning and coordination in the re-ploughing of the
revolving funds to new Youth Interest Groups. Its usage will be authorized by
the PS/MGLSD with the approval of the Accountant General.
(x) Funds in the District Collection Account shall not be used for any other purpose other
than financing approved Projects for new Youth Interest Groups. These funds
shall be remitted to Bank of Uganda Collection Account unless authorized by the
Accountant General to be used at Source as a Non Tax Revenue.
(xi) Effort will be made to reward good performing districts in terms of recovery of the
Revolving Funds by re-ploughing more of the funds to such districts.
(xii) The Districts shall submit financial reports on the status of recoveries of the
Revolving Fund to PS/MGLSD on monthly basis from the start of repayments.
Advantages of the Revolving Fund Approach:

(i) Ensures continuous availability of funds for new Youth Interest Groups, hence
sustainability of the Programme.
(ii) Instils the sense of urgency, commitment, hard-work, and responsibility among the
beneficiary YIGs.
(iii) It is an incentive to the Local Governments to mobilize repayments from the
beneficiary groups as a guarantee to have more funds to finance the overwhelming
needs of the Youth in their respective areas.
(iv) At the national level, if the Ministry of Finance releases the required funds annually
and the Revolving fund arrangement is well managed, the burden of mobilization of
new resources by the Ministry of Finance to finance the Programme each coming
Financial Year, will be eased, thereby reducing the pressure on the fiscal space.
(v) Peer pressure from the youth who are expecting to benefit in the subsequent rounds
of disbursements, will create self-motivation among the entire youth population to
work for the success of the Programme.
29
CHAPTER 7
7.0 FIDUCIARY ISSUES
7.1 Financial Management

The financial management under YLP will be done in accordance with the
Government of Uganda Financial and Accounting Regulations. MGLSD will ensure
that the plans and budgets for Programme activities are realistic and based on valid
assumptions.
The Programme will use the existing accounting staff at MGLSD headed by the
Principal Accountant and supported by the Accounts Team (additional staff may be
provided under the TST depending on the workload). A computerized accounting
system will be established at national and district levels to capture and track
transactions. A paper based system will be used to track the inflows and outflows at
community level.
Fund disbursement for approved Youth Projects will be made by MGLSD upon
receipt of:
(i) Requests for funds from the district including a letter from the CAO and
approved consolidated schedule of Project requests with particulars of each
project;
(ii) Minutes of DEC and DTPC approval meetings and;
(iii) Evidence of fulfillment of fiduciary requirements by the District
The disbursement of operations funds to the Districts and Sub Counties will be done
on quarterly basis based on:
(i) Quarterly reports for the previous quarter;

(ii) Quarterly work plans and;
(iii) Project financial reports/accountability for funds disbursed.
The District Internal Auditors and the MGLSD Internal Auditors will undertake
quarterly audits and day-to-day pre-audits of Programme activities, while the
independent external audits will be undertaken by the Auditor General to assess the
adequacy of, and compliance with, the established controls, policies and procedures.
7.2 Procurement
(i) (i) Procurements at the national and district level will be undertaken in line with
the existing PPDA Guidelines and Regulations for Government Institutions,
Agencies and Departments. Youth Interest Group Procurements will
also be guided by the existing PPDA guidelines for Community Procurement)
The Contracts Committee of MGLSD will handle all procurements of
equipment such as vehicles, motorcycles, computers, bicycles and others that
might be required for use at national level and for distribution to the districts
and Sub – Counties.
30
(iii) Community Procurement. The beneficiaries will be responsible for
procurement of their productive assets and tools by themselves. They will
receive technical support from sector experts at the district and sub-county
level. Simplified guidelines on community procurement under the Programme
will be developed and disseminated before or during implementation.
31
CHAPTER 8
8.0 INSTITUTIONAL STRUCTURE
8.1 National Level
(i) National Policy Committee

The National YLP Policy Committee (NYPC) will be chaired by the Minister of
State for Youth and Children’s Affairs. Other members include all Ministers of
State in the MGLSD, selected Ministers of State in the Relevant Line Ministries
as indicated in Chapter 9 of this document, Youth Members of Parliament by
virtue of being ex-officio Members of the National Youth Council and the
Chairperson, National Youth Council. The Permanent Secretary, MGLSD as the
Accounting Officer, will be responsible for the overall technical coordination of
the Programme. The committee will meet bi-annually and reports to the Minister
of Gender, Labour and Social Development. The roles and responsibilities of the
NYPC are of policy and budget oversight, advocacy, resource mobilization and
overall monitoring and supervision. The NYPMC will not be involved in direct
implementation and evaluation of the YLP.
(ii) Technical Support Team:
The Ministry of Gender, Labour and Social Development (MGLSD) will recruit a
small Technical Support Team (TST), comprised of people with relevant
technical expertise and experience in Livelihoods programmes, to beef up the
technical capacity at the Ministry level in order to ensure quick start and roll-out
of the implementation of the Programme. The TST will be headed by the Youth
Livelihood Programme Manager and assisted by experts in relevant fields in
Livelihoods, Vocational Skills Development, Entrepreneurship and Business
Management, Finance, Monitoring and Evaluation, Development
Communication, and Management Information System, to support MGLSD in
the implementation of the Youth Livelihood Programme in the whole country.
(iii) National Technical Working Committee:
There will be a National Technical Working Committee (NTWC) composed of
experts from relevant Ministries which will meet on a monthly basis. It will be
chaired by the Permanent Secretary. theThe Commissioner/Youth and Children
Affairs or his delegate will be its Secretary. The Committee will be comprised of
the Director for Social Prottheon, the Youth Livelihood Programme Manager, the
Skills Specialist, the Livelihood Specialist, the Executive Secretary, National
Youth Council, and other technical experts from relevant Ministries to the
implementation of YLP as in Chapter 9. The Specific roles and responsibilities of
the Committee include:
(a) Reviewing YLP national and District annual work plans and budgets.
(b) Providing technical and operational guidance to local governments in
implementation of YLP.
(c) Reviewing progress reports, financial reports, and audit reports of YLP.
(d) Reviewing project funding requests and progress made in implementation by
Districts.
32
8.2 District and Sub-county Levels
The CAOs shall be the Accounting Officer for the Programme at the district level. The
CAOs will designate CDO in charge Youth Affairs as the YLP Focal Person. At the Sub-
county level, the Sub-county Chief shall be the Accounting Officer and he/she will
designate the CDO or ACDO as the Focal Person of YLP at the sub-county level.
Dependent on the staffing capacity of the sub-counties, the districts may recruit a
competent team of qualified youth volunteers to work as Youth Facilitators (YFs) who
will be trained in participatory methodologies, entrepreneurship and business
management to support the Sub-county CDOs in the mobilization and facilitation of the
Youth Interest Groups in the generation of viable and fundable enterprises.
The DTPC and STPC will take responsibility to ensure proper coordination is achieved
through wider participation of the various stakeholders in planning, implementation and
monitoring of programmes at the District and Sub-county levels respectively. They will
also ensure that projects meet the sector norms and standards as well as the viability and
sustainability requirements. The Chairpersons of the Youth Councils will participate in
monitoring the implementation of the programme in the respective districts, Sub-counties
and communities.
8.3 Community Level

At the community level, the Youth Interest Groups shall be responsible for the
implementation of the Youth Projects financed. The committees of the groups will be
supported by sector experts at the Sub-county and District Level. The Sub-county
CDOs/ACDOs will take the primary responsibility of ensuring effective coordination of
the Programs at the community level.
33
CHAPTER 9
9.0 ROLES OF OTHER KEY STAKEHOLDERS
(a) Ministry of Gender, Labour and Social Development

Ministry of Gender, Labour and Social Development will be the overall overseer of the
implementation of the programme. The programme will be hosted in the Department of
Youth and Children Affairs. The Ministry will coordinate, supervise, monitor and
evaluate the programme to ensure compliance with the intended objectives.
The MGLSD will develop the Programme Operations Manual and relevant Guidelines. It
will also develop action plans and budget for submission to the relevant government
authorities for approval. The Ministry will ensure equitable distribution of the
opportunities under the programme, taking into account geographical balance, gender
agenda and specific considerations for persons with disability.
Ministry of Gender, Labour and Social Development shall submit the programme to
Ministry of Finance, Planning and Economic Development for inclusion in the Public
Investment Plan and coding, in order to enable effective programming and adequate
appropriation of funding.
(b) Ministry of Finance, Planning and Economic Development

Ministry of Finance, Planning and Economic Development (MFPED) shall ensure that
the programme is included in the Public Investment Plan (PIP) and National
Development Plan (NDP). MFPED will be responsible for mobilising the resources that
are required for the full implementation of the programme. It has to verify and confirm
that the programme is in line with government development objectives.
(c) Ministry of Local Government

Under decentralisation arrangement the Ministry of Local Government through the
District Administration System, is responsible for coordination, implementation and
managing all government programmes in all districts countrywide. The Ministry of
Local Government in collaboration with other line Ministries ensures that the
implementation of government programmes and activities are in line with established
rules and guidelines and are incorporated in the respective district programmes and
work plans.
The Local Governments at both the district and sub-county levels will be involved in
mobilisation, selection of the appropriate beneficiaries, approval of projects,
implementation, supervision monitoring and evaluation. It is therefore important that
the Ministry of Gender, Labour and Social Development liaises with Ministry of Local
Government to ensure effective implementation of the YLP in all the districts.
34
(d) Ministry of Justice and Constitutional Affairs
Ministry of Justice and Constitutional Affairs (MJCA) will ensure that the programme
operates within the legal and constitutional framework provided and does not breach any
legal provisions. The MJCA provides legal guidance at the formulation, implementation
and completion phases of the programme.
(e) Ministry of Public Service

The Ministry of Public Service is responsible for all issues related to human resources
and welfare of civil and public servants. Under the YLP the Ministry of Public Service
will provide technical guidance on the approval of the appropriate structure, recruitment
of staff and remunerations. The Ministry will also ensure that the objectives and outputs
of the programme are achievable within the established guidelines and timelines. It is the
role of the Ministry of Public Service to approve and monitor the implementation of the
contracts that have been signed with various technical staff under the programme.
(f) Ministry of Education and Sports

Ministry of Education is responsible for all training programmes and skills development
in both private and government institutions. It provides advice on the production of
training curriculum and training programmes. Ministry of Education will play a key role
in providing technical guidance for the development of different training programmes
under the YLP. It will also provide recommendations to MGLSD on the appropriate
institutions to be effectively engaged in equipping the youth with relevant skills and
knowledge for participation in sustainable production for National Development.
(g) Ministry of Trade, Industry and Cooperatives

The Ministry of Trade and Cooperatives will play a key role in guiding the youth in
Entrepreneurial Skills Development and promotion of group activities among the youth.
(h) Office of the Prime Minister

Office of the Prime Minister is the overall supervisor of government business. All
government institutions including Ministries report on the Performance of their respective
programmes/activities to the OPM for assessment. OPM will provide technical guidance
for the development and monitoring and evaluation framework that will be used for
assessing the performance and impact of YLP on quarterly and annual basis.
Performance reports will be submitted to the OPM on quarterly and annual basis.
Whenever necessary, OPM will visit projects under YLP countrywide to assess the level
of performance and impact.
35
(i) Inspector General of Government (IGG)
The Inspector General of government will work with other stakeholders to ensure that the
benefits of the programme go to the intended targets. IGG will also ensure that the
financial management is in compliance with the government rules and regulations. IGG
may take appropriate measures to punish non-compliance.
(j) Office of the Auditor General

The Office of the Auditor General will ensure effective financial accountability for the
resources released to the project. It will be responsible for institution of sanctions for
non-compliance with accountability milestones. Office of the AG shall ensure that there
is prudence in the utilisation of resources and that there are no un-authorised diversion or
misuse of funds of the programme.
(k) Bank of Uganda

All the project funds will be accessed through Bank of Uganda. The Bank shall on
appropriate requisition and approval by Ministry of Gender, Labour and Social
Development disburse funds to the respective beneficiaries for implementation
Programme activities at the various implementation centres.
(l) Parliament
Parliament will approve the programme for further consideration. It is responsible for
mobilisation and appropriation of adequate funds for the programme to ensure
consistency, sustainability and national coverage. The parliament, especially the Youth
Parliamentarians, will play important role in monitoring and evaluation of the project to
ensure compliance with the established rules and procedures. It will undertake regular
political supervision of the programme up to community levels to ensure quality results.
Parliament shall also advocate for increased resources depending on the need and
absorption capacity.
(m) National Youth Council

The National Youth Council will participate in the sensitization and monitoring of the
programme. They will also mobilise and sensitise the youth countrywide to support and
participate in the programme especially at the community level. They will have important
role of guidance and supervision of the beneficiaries to guarantee success of the
programme. The Chairpersons of the Youth Councils at the district and sub-counties will
be involved in the beneficiary selection and project approval to ensure that the youth that
are selected meet and the projects that are approved, meet the guidelines set under the
programme and are in the best interest of the youth.
36
(n) District Authorities
(i) As the political head of the district, the District Chairperson will supervise the
programme to ensure that the intended youth are the actual beneficiaries and not
imposters.
(ii) Resident District Commissioners as representatives of the President in the districts

will monitor and supervise the programme to ensure successful implementation
and positive impact.
(iii) The Chief Administrative Officers (CAOs) as technical head of the district will be
responsible for the overall technical oversight role of the programme in their
respective districts. The CAOs will submit progress reports to the PS/MGLSD on
quarterly basis.
37
ANNEXES
ANNEX 1: PROGRAMME RISKS AND MITIGATION MEASURES
Table 4: Programme Risks and Mitigation Measures
Risk Rating Mitigation Measures Rating after
Mitigation
1. Over raising expectations H - Provide clear and regular targeted IEC messages on S
of youth and inability to Programme targets, resource allocations and access
meet the demand criteria through the official government
generated amongst the communication channels and the youth leadership
target youth population. structures.
- Provide clear messages on the phases of Programme
implementation, period of engagement selected
under Programme and the exit strategy.
- Institute a well-coordinated mechanism of selection
of youth for various existing youth livelihood
opportunities.
- The Chief Administrative Officers should ensure
effective coordination in the selection of youth for all
related programmes to avoid multiple funding of
some youth at the expense of other equally deserving
youth.
- Match the messages provided with actions (walk the
talk).
2. Delays in release of funds H - Strong commitment from Ministry of Finance, L
by Ministry of Finance, Planning and Economic Development to avail all
Planning and Economic funds allocated for the Programme on time.
Development resulting in
delayed disbursement to
Youth Interest Groups
3. Low technical capacity H - Establishing a Technical Support Team (TST) with L
for project qualified technical staff to complement the
implementation at various mainstream technical staff in the MGLSD at the
levels national level and the Local Governments.
4. Low fiduciary capacity at H - Equipping key implementers with simplified M

various implementation guidelines in procurement, accounting and financial
levels management procedures under the Programme.
5. Challenges of realizing H - Strengthen the capacity of Local Governments to S

timely recovery of supervise and monitor the implementation of projects
programme funds at the community level, as well as recovery of the
released to the Youth revolving fund.
- Peer pressure by co-guarantors (from within the
group)
- External peer pressure (from potential beneficiaries)
- Rewards and Sanctions
6. Low involvement of H - Incorporate members of the existing youth organs M
youth in project processes such i.e the Youth Councils at all levels
- Selection of the youth to be done at the community
level with the participation of the youth.
- Preparation of project proposals and budgets to be
done at the community level with the youth.
38
Risk Rating Mitigation Measures Rating after
Mitigation
- Establishing community youth groups with proper
leadership structures to coordinate, monitor,
supervise and report on project activities
7. Corrupt tendencies among H - Introducing Transparency, Accountability and Anti- M
some stakeholders corruption (TAAC) sub-component in the program to
be spearheaded by the Inspectorate of Government
(IG) to put emphasis on prevention of corruption and
impropriety throughout Programme implementation.
Sanctions will be invoked on culprits.
- Establishment of Social Accountability Committees
(SAC) from within the Youth Interest Groups. SAC
will have linkage with IG. IG will sensitize the SACs
on their roles and responsibilities.
- Designating the offices of the PS/MGLD, CAO,
RDC, as centres of grievance re-dress. These centres
will provide “ hot-lines” (special telephone lines to
be accessed by the public any time).
H - High S - Substantial M - Moderate L - Low
39

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REPUBLIC OF UGANDA

MINISTRY OF GENDER, LABOUR AND

YOUTH LIVELIHOOD PROGRAMME (YLP)

1.1 Background and Country Context ............................................................................................ 1

2.0 PROGRAMME DESCRIPTION ................................................................................................... 5

2.1 Introduction ................................................................................................................................... 5

3.0 PROGRAMME COMPONENTS ................................................................................................ 11

3.1 Skills Development (SD) Component......................................................................................... 11

4.0 PROGRAMME IMPLEMENTATION ARRANGEMENTS.................................................... 15

4.1 General Arrangements ................................................................................................................. 15

5.0 PROJECT CYCLE AND BENCHMARKS ................................................................................ 24

6.0 FUND REVOLVING MECHANISM ............................................................................................ 28

7.0 FIDUCIARY ISSUES ...................................................................................................................... 30

7.1 Financial Management ................................................................................................................ 30

8.0 INSTITUTIONAL STRUCTURE ................................................................................................... 32

8.1 National Level.................................................................................................................................. 32

9.0 ROLES OF OTHER KEY STAKEHOLDERS ......................................................................... 34

ANNEX 1: PROGRAMME RISKS AND MITIGATION MEASURES............................................... 38

1.1 Background and Country Context

1.2 The Un-employment Challenge

The high level of unemployment among the youth is a concern worldwide, as it is a

There are strong linkages between unemployment, underemployment, shortage of decent

1.3 Justification for the Youth Livelihood Programme

The Youth Livelihood Programme is therefore designed to provide strategic and

1.4 The Legal Policy Framework

The Youth Livelihood Programme is informed and premised on a number of relevant

The YLP is responsive to Uganda’s Vision 2040 statement, “A Transformed Uganda

The Youth Livelihood Programme (YLP) is a Rolling Government of Uganda

YLP is a community demand-driven Programme that will be implemented with guidance

2.2 Programme Objective

2.3 Key Performance Indicators (KPI)

The PDO will be measured by the following Indicators:

(i) Dropouts from school and training institutions

2.5 Programme Period and Geographical Coverage

2.6 Operating Principles

(c) Gender Responsiveness and Promotion of Equity:-The Programme will ensure

(e) Public-Private Partnership:-The implementation of the YLP shall promote

(f) Non-involvement of Child Labour:-No child shall be employed in any YLP

(h) Viable and Sustainable Investments:-The livelihood enterprises shall be

(k) Utilizing Existing Institutions:-The Programme shall use relevant existing

(m) Community Procurement:- The beneficiaries will be responsible for procurement

2.7 Programme Financing and Resource Allocation Criteria

(i) Poverty Count (40% weight);

2.8 Project Eligibility Criteria

c. All the Youth Interest Groups are transparently selected in a community

h. The enterprise has a good implementation and sustainability plan.

2.9 Environmental and Social Safeguards

2.11 Key Features of the Design of the Youth Livelihood Programme

3.1 Skills Development (SD) Component

Table 1: Some Investment Options for Skills Development Component

Component Recommended Investment Options/Menu

Table 2: Some Investment Options for Livelihoods Support Components

Component Recommended Investment Options/Menu

3.3 Institutional Support (IS) Component

Elements of Programme Implementation Support

The key functions of the TST will include the following:

(ii) Transparency, Accountability And Anti - Corruption

i) Transparent beneficiary selection, Project approval, disbursement,

i) Invoking Government Civil Service Standing Orders for Civil Servants.

Issuing certificates of recognition and recognizing good performance on public media