Remittances from Ugandans living abroad have begun improving following the Covid-19 impact, a latest report indicates.
According to Bank of Uganda Annual Supervision Report, remittance inflows increased from $579m during the year ended December 2020 to $599.3m in 2021.
This was a 3.52 percent recovery from a decline registered in 2020.
During 2020, remittances to Uganda declined by 2.8 percent.
According to a report by the Ministry of Gender, it is estimated that at least an average of 24,086 Ugandans leave the country annually in search of employment, especially to the Middle East.
Dr Fred Muhumuza, an economist and a lecturer of economics at Makerere University, said the recovery and increase in remittances is good for the economy because they come at a time when the shilling is facing serious pressure due to an increase in demand for dollars against low supply.
“We need the dollars, but most importantly these feed directly into households of the emigrant workers many of which are very fragile and vulnerable and hence support the local economy at the grassroots,” he said.
In the last three years, remittances have been impacted by a number of factors, among which include slowdown in the global economy, Covid-19 and surge in commonalty prices.
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