By Ambrose Kweronda
www.mknewslink.com
In Kabale—
Bank of Uganda Deputy Governor Professor Augustus Nuwagaba says Uganda earns about 1.6 billion US dollars annually from Ugandans working abroad, making labor exports an important source of foreign exchange alongside tourism, remittances and merchandise exports.
Nuwagaba made the remarks today during the closing of a two-day town hall meeting organized by the Bank of Uganda for members of the public at White Horse Inn Hotel in Kabale District.
He says about 900 million dollars of the earnings come from unskilled Ugandans working mainly in the Middle East, while about 700 million dollars is generated by skilled professionals working in countries such as the United States.
Nuwagaba said labor externalization is increasingly important to Uganda’s external sector because the income supports household spending, contributes to foreign exchange reserves and strengthens the country’s current account.
Nuwagaba, however, said Uganda could earn significantly more from labour exports if more workers acquired skills that would enable them to compete for professional and managerial positions.
He urged government and other stakeholders to strengthen vocational and professional training before Ugandans leave the country in search of employment. He said Ugandan workers are mainly employed in countries including Saudi Arabia, the United Arab Emirates, Qatar and the United States.
Nuwagaba said skilled workers are more likely to secure better-paying jobs than those engaged in casual employment, which would increase the amount of money sent back home.
He also said Uganda earns about four billion US dollars annually from foreign visitors, including tourists and investors, making tourism another major source of foreign exchange.
Nuwagaba attributed the growth of tourism and investment partly to the peace and security that the government has strengthened across the country.
However, he said foreign exchange earnings from labor and tourism need to be matched by increased production and exports of goods and services if Uganda is to reduce pressure on the shilling.
Nuwagaba said increasing domestic production and adding value to agricultural and other products would enable Uganda to expand its export base, generate more foreign exchange and reduce dependence on imports.
Meanwhile, Michael Besigye, a Councilor representing Butobere Ward in Central Division, Kabale Municipality, has demanded an explanation as to why the salaries of sub-county political leaders are subjected to taxation, yet their earnings are already meagre.
Besigye also expressed concern that local government leaders are not given special consideration when seeking bank loans.
Isaac Tumusiime, a resident of Rukiga District, says government loan schemes are not visible on the ground, despite efforts to promote them as avenues for improving access to affordable financing.