28 September 2008
editorial
Kampala — Uganda generated $3.4b (sh5.9 trillion) from exporting merchandise, formal service exports, remittances from people working outside the country and cross-border trade last year.
The Ugandans working abroad brought into the country over $785m (about sh1.3trillion), according to report just released by the Ministry of Trade and the Uganda Export Promotions Board.
The remittances from the Ugandans working outside the country during the 2006 amounted to $730m. The total export earning during the year amounted to $2.6b. Therefore, the remittances from the Ugandans abroad constituted 25% of the country's overall foreign exchange earnings.
The contributions of Ugandans working abroad to the country's economic development are certainly significant. Many are working under extreme hardships and risks - for instance as security guards in Iraq. While some Ugandans are professionals doing highly skilled and specialised work, most are engaged in doing odd jobs, commonly known as kyeyo, in several countries.
Uganda, ironically, started 'export' of labour by default. During the country's turbulent period between 1966 and 1986, thousands of Ugandans fled into exile due to political repression and persecution.
They sought refuge in the neighbouring countries. Hundreds moved further to southern Africa while others migrated to Europe and America. Even after the country stabilised politically, after 1986, many Ugandans continued to go out largely as economic 'migrants'. These are the Ugandans who today are remitting millions of dollars back home.
The country has a big potential to increase foreign exchange earnings from exporting labour. There are many countries receiving a lot of money from export of labour. But the Government has to have a deliberate policy to promote export of labour.
It is important that the country's education policy emphasises creating a highly skilled labour force. Many countries are facing acute shortages in critical manpower fields.
Uganda should focus on training professionals in these key fields. Many Ugandans working abroad currently are paid 'peanut' because they lack skills and can only do odd jobs.
The Government should also offer protection to these Ugandans working in countries such as Iraq from unscrupulous companies and individuals.
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