In a notable economic contribution, the Ugandan government has garnered Shs25 billion from the exportation of migrant workers in the two-year period leading up to 2023, according to data from the Ministry of Gender. This revenue stream encompasses a variety of sources, including fees for expressions of interest, fines, accreditation charges, job orders (both local and international), and licensing fees.
A detailed examination within the January 2022 to December 2023 Labour Externalisation Statistics report reveals that the bulk of this income, approximately Shs24.5 billion, was generated from job orders, with a significant distinction between local and international opportunities. Local job orders contributed Shs324 million to the government’s coffers, while international job placements were substantially more lucrative, bringing in Shs24.1 billion.
The report highlights a year-over-year analysis showing a notable disparity in earnings from job orders, with Shs17 billion recorded in 2022 and a decrease to Shs7 billion in 2023. Licensing of 390 companies at a rate of Shs2 million each accounted for Shs780 million, and accreditation fees added another Shs21 million to the total revenue.
Additional revenue streams included expression of interest fees and fines, contributing Shs58.8 million and Shs72 million, respectively, to the government’s earnings.
A significant downturn in revenue across all categories was observed in 2023, which Ms. Ritah Nakonde, a labour officer at the Ministry of Gender, attributed to the delayed renewal of a key bilateral labour externalisation agreement with Saudi Arabia. The Gulf country has been the primary destination for Ugandan migrant workers, absorbing at least 89.1 percent of the workforce.
The delay impacted earnings severely, with a sharp decrease to Shs7.3 billion in 2023 from Shs17.7 billion the previous year. The specific reasons for the delayed agreement renewal were not disclosed in the report.
Throughout this period, Uganda saw 120,459 of its citizens embark on employment opportunities abroad, with a significant majority, 77.5 percent or 109,773, being women. The Middle East, led by Saudi Arabia, remained the preferred destination, accounting for 89.1 percent of the migrant workforce.
The report also sheds light on the drop in the number of migrant workers to 27,063 in 2023 from 93,396 in 2022, a situation exacerbated by the stalled agreement with Saudi Arabia, causing recruitment agencies to lose job orders.
Other notable destinations for Ugandan workers included Qatar, the UAE, Somalia, Iraq, Kuwait, and Bahrain, with Europe (specifically Poland and Romania) attracting a smaller number of individuals.
The Ministry’s report underscores the critical role of labour externalisation in addressing unemployment among Uganda’s youth, with the majority of migrant workers finding employment in sectors such as domestic help, security, cleaning, driving, and retail.
As of the report’s publication, there were an estimated 220,000 Ugandan migrant workers in the Middle East under both new and ongoing contracts, predominantly employed as domestic helpers, alongside 30,000 security guards and over 10,000 drivers, illustrating the vast scale and significance of Uganda’s labour export sector.
