Business and Economic News By Leo Odera Omolo
MONEY remitted by Ugandans living abroad is expected to reach $773m (sh1.7 trillion) this year, up from $694m (sh1.56 trillion) the previous year, a World Bank report has said.
The World Bank publication titled “Migration and Remittances Factbook 2011”, which tracks documented private transfers of funds and migratory patterns around the world, noted that Uganda was among the top 10 remittance recipients in Africa.
It said the top remittance recipient in Africa was Nigeria, accounting for $10b this year, a slight increase from the previous year’s $9.6b. Others are Sudan ($3.2b), Kenya ($1.8b), Senegal ($1.2b), South Africa ($1b), Uganda ($0.8b), Lesotho ($0.5b), Ethiopia ($387m), Mali ($385m) and Togo ($302m).
The bank predicts that recovery of remittances to Africa will reach $24b (sh54 trillion) by 2012. This recovery is against the aftermath of the global economic crisis.
“The fact that remittances are so large, come in foreign currency and go directly to households means that these transfers have a significant impact on poverty reduction, funding for housing and education, basic essential needs and even business investments,” Dilip Ratha, the manager of the migration and remittances unit at the World Bank, said in a statement on Tuesday.
Remittances from Ugandans abroad have surpassed traditional foreign currency earners like tourism, which amounted to $400m (sh900b), coffee at $269m (sh605b) and fish at $143.53m (sh323b).
The World Bank also estimates that about 22 million sub-Saharan Africans have left the continent.
Africa also has a higher intra-regional migration rate than the rest of the developing world, with three out of four African migrants living in another country in sub-Saharan Africa.
The report reveals that over 757,000 Ugandans are living outside their country of birth this year. “Among those with tertiary education, 36% are living outside Uganda as of 2000.”
The report added that the top destinations for migrants from Uganda are Kenya, the UK, Tanzania, the US, Rwanda, Canada, Sweden, Australia, Germany and Denmark.
“It is estimated that nearly 647,000 non-Ugandans are living in Uganda this year.”
According to the report, the Uganda-Kenya migration corridor is among the most dynamic in sub-Saharan Africa.
The report says islands and fragile or conflict-afflicted states have the highest rates of skilled emigration.
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