KAMPALA, UGANDA - Remittances by Ugandans working abroad have gone down by at least $10million dollars over 2010, Uganda's central bank governor told reporters in Kampala.
Mr. Emmanuel Mutebile said Uganda recorded about $760 million in 2011, a decline from $778 million in 2010.
He attributed it to the economic situations that hit the world. The world was hit by high inflation levels, which led to high costs of living hence low savings for most people.
According to Bank of Uganda, the country had expected remittances to reach at least $981million last year, which expectation was failed by the economic turndown.
"Last year's remittances were lower than 2010 with over 90% of the money sent in cash through money transfer operators," said Mutebile.
Among the EAC partner states, Uganda remittances in 2010 came second to Kenya which bagged over $1.6b from Kenyans in the Diaspora, representing 5.6% of its GDP.
Tanzanians abroad in 2010 sent home about $18 million according to available data, which represented a paltry 0.09% for East Africa's third biggest GDP.
The available data further shows that Rwandans working outside their country, projected to grow above 6% this year, sent home nearly three times what Tanzanians did, at over $67 million.
This accounted for 1.5% of their GDP. The Burundians abroad sent home the smallest amount in 2010 at $3.6m, which was 0.31% of their GDP.
Except last year, Uganda has been receiving increasing and large remittances, relative to Tanzania, Burundi and Rwanda.
This is explained by the large number of Ugandans living and working abroad.
They migrated as refugees during the turbulent 1970s and 1980s and more recently, those that have been going to Iraq and Afghanistan as guards.
Mutebile added that the reducing number of Ugandans working in the Middle East as security guards is also a factor that contributed to Uganda's declining remittances.
Among the East African neighbours, Ethiopia received $780 million remittances from the Diaspora in 2010.
The Ethiopian National Bank noted then that the 2010 remittances exceeded those of 2009 by 9%.
About one million Ethiopians are said to be living outside Ethiopia, most of them in the United States and Europe.
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