The Ugandan government suffered substantial financial losses, amounting to Shs10.4 billion in Non Tax Revenue (NTR), as the number of domestic workers seeking jobs in the Middle East dropped by 34,234, from 55,643 in 2022, according to statistics from the Ministry of Gender, Labour, and Social Development (MGLSD).
The decline in revenue was attributed to decreased activities in labor exports, resulting in losses from passport applications, job order approvals, licensing fees, accreditation fees, late submission charges, and expression of interest fees. In 2022, maids remitted Shs4.5 trillion ($1.1 billion) to Uganda, contributing to an NTR of about Shs20 billion.
“We collected more than Shs7.3 billion in NTR last year, including expression of interest fees, fines, and job orders,” revealed Mr. Hillary Muhumza from the Gender Ministry.
The Ministry of Internal Affairs reported a decrease in passport applications due to the closure of business by some labor export firms. Exporting labor from Uganda has become expensive, with multiple requirements, including security fees and a Shs2 million license fee.
Mr. Simon Mundeyi, the Internal Affairs spokesperson, noted that the cost of externalizing a maid to the Middle East averages $1,200 (about Shs4.4 million) in Uganda, compared to $800 (about Shs2.9 million) in Ethiopia. Many Arab countries have reduced their engagements with Uganda, leading labor export companies to turn to countries like Nepal, Kenya, Burundi, Pakistan, Ethiopia, and Nigeria for cheaper labor.
The reduction in labor export activity in Uganda has impacted passport processing, with the Ministry processing about 1,200 passports per day, down from 2,000 to 3,000 in 2022. Mr. Mundeyi pointed out that the closure of labor export companies, a significant market for passports in 2022, has contributed to the decline.
While the Gender Ministry renewed the bilateral labor agreement with Saudi Arabia, considered strict but with better terms, the executive director of Uganda Association of External Recruitment Agencies (UAERA), Mr. Stuart Oramire, attributed the decrease in numbers to the signing of this agreement.
Data from the Gender Ministry indicates that the monthly average of migrant workers leaving Uganda for employment decreased from 7,724 in 2022 to fewer than 300 currently. Oramire highlighted the lengthy process involved in passport issuance, Interpol certificates, training, and travel preparation as contributing factors to the decline.
