1. Measuring Workers’ Remittances
Michael Atingi-Ego
Bank of Uganda

2. Outline Introduction Measurements of Data on Migrants Remittances
Weaknesses in the Current Methodology
Way Forward

3. Introduction Migrant remittances equivalent to 5% of GDP
Account of 50% of exports of goods
Largely spent on consumption, though investment is now picking up
Propensity to remit increasing on account of improving macro-economic environment, investment climate and political situation

4. Introduction Seasonal From SA, UK and USA
Outward remittances destined to China and India mainly
Accounts for about 3% of GDP
Commercial banks, Forex Bureaus, International Transfer Agencies, Informal Channels
TT, Money Orders, Drafts, Cash, in Kind

5. Measurement Control total for both inflows and outflows
Subtraction of all identified inflows and outflows;
Residual is deemed private transfer inflows;
Private inflows sub-divided into migrant remittances and other private transfer inflows including NGO’s, insurance premiums etc

6. Measurement
Breakdown between migrant remittances and other private transfers is derived using ratios obtained from commercial banks monthly reports
Sometimes underestimated as transfer in kind is not included or overestimated when currency conversions take place in commercial banks (capital a/c liberalization)

7. Measurement
Assumption is that all FX inflows are converted into local currency
Outside FX authorized dealers e.g. informal channels and goods in kind excluded

8. Weaknesses in Current Methodology
Omission of transfer in kind and transfers in informal sector
Import financing does not provide for gifts or goods in kind
Agents involved in both domestic economy and non-resident agents in a sophisticated method of settlement. Imports vs. settlement in local currency

9. Weaknesses in Current Methodology
Does not provide any additional data for analytical purposes e.g. origin of transfers
Lack of migration statistics to identify whether Ugandans leaving the country are on a short or long term duration
ITRS systems could not be enforced because of lack of legal mandate

10. Way Forward
Use of National Household survey for the first time ever (2005)
Law in place to strengthen the use of ITRS
Licensing of private money transfer companies apart from the already existing authorized dealers - expected to lower costs and therefore improve on the data captured)
Enforcement mechanism for accurate data collection provided for in the law.

11. Thank You