Sub-Saharan Africa remittances grow

 

MP Tinkasiimire (3rdL) chairs the Presidential Affairs Committee at Parliament yesterday. Photo by G. Sseruyange.  

by Dorothy Nakaweesi

In Summary

Europe and America are the leading source of Uganda’s remittances.

Washington dc.

Remittances to Sub-Saharan Africa hit $31 billion in 2012, according to World Bank estimates. Remittances to the region have been improving from the reduction associated with the global financial crisis, but growth has been modest.

The increase in remittances is a sign of modest recovery within the world’s major economies. “In 2012, the region is estimated to have received about $31 billion in remittances, only about a 1 per cent increase over 2011,” said the World Bank in its latest edition of the Migration and Development Brief.

Nigeria was the largest recipient of remittances in the region accounting for about 67 per cent of the inflows to the region in 2012, followed by Senegal and Kenya. Meanwhile, the World Bank says it expects remittance flows to sub-Saharan Africa to grow significantly in the coming years to reach about $39 billion in 2015.

Uganda
Records from Bank of Uganda show that the country’s projection for 2012 reached over $700 million.



Dr Adam Mugume, the bank’s executive director for research said, despite the economic constraints faced in some countries like the USA, South Africa, Europe and South Sudan, Uganda’s remittances from abroad may not decline from last year’s collections of about $700 million.

He said: “About 60 per cent of that money ($700 million) was collected by the end of July.” Europe and America are the leading source of Uganda’s remittances.