Labour exports earn Uganda $1.6 billion annually

What the report says

Uganda earns about $1.6 billion a year from citizens working abroad, according to the Bank of Uganda deputy governor, Augustus Nuwagaba, speaking at a town hall meeting in Kabale District. The Independent Uganda reports that the money from labour externalisation is becoming an important source of foreign exchange alongside tourism, remittances and merchandise exports.

Nuwagaba said roughly $900 million of the total comes from less-skilled workers, many employed in the Middle East, while about $700 million comes from skilled Ugandans working in places such as the United States. He identified Saudi Arabia, the United Arab Emirates, Qatar and the U.S. as key destinations for Ugandan workers. He said these earnings support household spending, bolster foreign exchange reserves and help the country’s current account.

The official argued that Uganda could increase earnings from labour exports if more workers received vocational and professional training before leaving the country. He said people with stronger skills are more likely to get higher-paying jobs and send back more money. He also linked the discussion to wider economic pressures, including a narrow export base, a high import bill and strain on the shilling.

Nuwagaba also said tourism brings in about $4 billion annually and urged greater production, value addition and investment to reduce dependence on imports and strengthen long-term foreign exchange earnings. Separately, the report included comments from local figures in Kabale and elsewhere who raised concerns about bank lending rules, taxation of local leaders’ salaries and the visibility of government loan schemes.