Diaspora community advised to demand government accountability

A woman transacts business over a Western Union money transfer machine. PHOTO BY FAISWAL KASIRYE 

By  ISMAIL MUSA LADU

In Summary

In 2008, about 40 per cent of remittances originated from Europe. By 2011, it had dropped to 23 per cent.

The Ambassador designate to the Nordic countries, Zaake Kibedi Wanume, and the Uganda Federal Alliance president, Ms Beti Olive Kamya, want Ugandans in the Diaspora to begin demanding for accountability of their remittance contributions.

Most remittances to the developing countries, among them Uganda, contribute to economic growth and development through consumption, savings and (productive) investments, which in turn could reduce volatility, poverty and increase growth.

Participate

In a separate interview, Mr Kibedi also said Ugandans living and working abroad should not shy away from using services provided by government institutions like the Export Promotion Board, the revenue body and the standard’s agency to help them promote trade and investment.

Mr Kibedi added: “it is unacceptable for Ugandans abroad to turn a blind eye to the country’s ills yet they have a stake in the affairs of the country.”

But according to Ms Kamya, people in the Diaspora should first ensure that the government is held accountable or else their remittances will be susceptible to mismanagement.

“Ugandans in the Diaspora should not leave the accountability role to politicians; they must know how their money is spent,” Ms Kamya said.

By 2010, remittances from Ugandans in the Diaspora had hit $1.7 billion.

But according to information from Bank of Uganda, there is a decline in remittances, which is expected to drop to $700 million down from $813 realised in 2011.

Reason

Bank of Uganda director of research, Dr Adam Mugume, said in an earlier interview that the major contributor to the low remittances has been the Eurozone crisis, a situation which has seen the economies where many Ugandans work suffer economic stagnation and a liquidity squeeze.

Changing the tide
To reverse the trend, Ugandans living in the Nordic countries are now working towards improving the volume of trade between Uganda and countries such as Sweden, Norway, Finland, Denmark and Iceland.

“We need to move towards trade. And through that we will not even need aid as we shall be on equal footing,” Mr Eddie Bazira, the chairman of the Uganda Diaspora Coordinating office, said early this week while launching the Uganda Nordics Business Expo 2013.

He said the exhibition that is held between June 6-9  aboard the Silja Line Cruise—between Stockholm, Sweden and Helsinki, Finland  would avail Ugandans the opportunity to seal partnerships  and a first hand information on how to penetrate the Nordic countries markets and adopting various technologies, business and agro-processing ideas they can use back home—a step towards moving away from aid to trade. 

He said there are numerous opportunities for partnerships in information technology, financial services, construction, motor vehicles, pharmaceutical products, wood & paper, iron and steel, agro-processing among others.

Mr Bazira said the Nordic business community is known to observe high ethical standards and does engage in long-term mutually rewarding relationships.

“Furthermore, the region does enjoy a very stable economic regime with stable prices and low interest rates, hence providing an ideal business environment for business persons,” Mr Bazira said.