“Projections show that remittance in 2010 will amount to $980.9 million (Shs2.2 trillion)” Dr. Kihangire said recently at a conference aimed at encouraging Ugandans in the Diaspora to invest back at home.
He attributed the increase to the number of Ugandans going to work abroad and the fact that majority at work, have not lost their jobs despite the global recession in the last two years.
A report by the World Bank; “Migration and Remittances Factbook 2011” released in November attributed the increase in remittances to the global economic recovery, which has resulted into job stability and new jobs for millions of immigrants from developing countries.
Globally remittances are expected to reach $440 billion up from $416 billion in 2009 according to the report. “Remittances help in time of crisis and distress. Remittances impact on poverty and welfare through a multiplier effect,” Dr Kihangire told participants at the 4th annual Diaspora Home is the Best Summit in Kampala yesterday.
Most of those working abroad send home money to friends and relatives for education and health purposes with little going to investment activities according to BoU.
The remittances mainly originate from Europe and America according to a recent BoU survey. “In Uganda, 50 per cent of remittances recorded have been used for education and health expenses. 40 per cent is attributed to savings and investment while 10 per cent goes to social activities,” he said.