5 December 2012

Uganda Expects U.S $700 Million Remittances From Abroad

Uganda, which is the third largest economy in East Africa expects to record over $700million as remittances earned by Ugandans living in foreign countries, a top Bank of Uganda official has said.

Speaking to journalists at the Bank's head office in Kampala on Dec. 4, Adam Mugume, the bank's executive director for research said, despite the economic constraints faced in some countries like the USA, South Africa, Europe and South Sudan, Uganda's remittances from abroad may not decline from the last years collections of around $700million.

"We think about 60% of that money ($700million) was collected by the end of July and that the balance is being recorded," he said.

The remittances in Uganda mainly originate from Europe and America according to reports from the Central Bank. Part of the remittances recorded has been used for education and health purposes which have positively impacted on peoples' lives. Part of it (remittances) is invested in businesses which in the long term, contribute to the improvement in country's balance of payment position.

Uganda recorded about $760 million in 2011 as remittances down from $778 million in 2010, posting a deficit of $10million. The deficit was attributed to the tough economic situations including inflation that hit the world in the year.

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