Can Uganda's migrant workers invest in agriculture?

Hundreds of Ugandans have of recent years travelled to the Middle East in search of employment.

Many of them after a two year stint have accumulated income which at times they remit home for investments.

They sometimes return and buy land for farming or building rental incomes.

Quite a number have experienced challenges of exploitation, arrests and deportation.

There have been many success stories of Ugandans who have succeeded while working abroad when they had failed to get employment at home.

Dr Madina Guloba, senior research fellow at the Economic Policy Research Centre (EPRC) said that labour externalisation bears both positive and negative implications for the agro-industrialisation agenda in Uganda.

"Can those who have returned easily be absorbed along the agro-industrialisation value chain and benefit from the skills and technology transfer they have attained while working abroad? Can the opportunities identified along the agro-industrialisation value chains reduce helplessness, vulnerability or resultant exploitative employment," Guloba said.

This was during a dialogue on the role of labour externalisation in fostering agro-industrialisation value chains in Uganda.

The function took place at the Economic Policy Research Centre, Makerere University.

The output from the dialogue is part of the African Policy Dialogues under the Inclusive Development (INCLUDE) project on ‘creating productive and decent work for youth and women in Uganda through agro-industrialisation'.

Guloba is leading a team of researchers to find out if Uganda's migrant workers who return can boost the agriculture sector in Uganda.

Guloba said that in their study they will inquire whether those who aspire to be externalised and those returning can invest their remittances in agriculture if such information and opportunities are presented to them.

"The success stories of those who have invested in the agro-industrialisation value from remittances are key to inspire future externalised workers," Guloba said.

Mukasa Muawiya, director Kapeka Agro and Livestock Farm and Rabbitry said that while working in Dubai he was able to buy land in 2013 and planted 5 hectares of eucalyptus trees.

He said he bought a plot in Nansana and spent at sh70m to build rental units and later sold them.

Muawiya said if Uganda farmers are to benefit from exporting to the United Arab Emirates and the Middle East they need to form groups and associations.

He explained that buyers in the Middle East want to sign big contracts to receive large quantities of supply.

He said a number of brokers from Uganda have disappointed buyers in Dubai because they do not deliver as they promised.

He urged youth to form groups to produce in big quantities as the markets require consistent large quantities

"We need markets that can sustain commercial farming which needs lots of money. The youth see externalisation of labour as a way to get capital to come and invest home," Muawiya said.

Muawiya asked the Bank of Uganda to find ways to enable Ugandans sending money home cheaply because the current money transfer costs take up over 30% of the money being sent.

He said while in the Middle East the financial institutions do not allow Ugandans to open bank accounts because their earnings are too little compared to what citizens in those countries earn.

Lawrence Egulu, commissioner employment services ministry of gender, labour and social development said some people see agriculture as a dirty business.

"When people return from abroad they can invest in agriculture. Uganda gets sh1.6b annually from remittances which are bigger than sh300b from cotton exports and sh500b from coffee exports. We need to see that our migrant workers are well taken care of," Egulu said.

He called for the setting up of a revolving fund which can help people to travel and pay back when they start earning.

He said maids earn about $220 (sh800,000) monthly and security guards earn $500 (sh1.8m) monthly which is better than what they could earn at home.

Egulu urged those travelling abroad to use registered companies and go through the proper channels.

He said those using illegal channels get trafficked or cheated.

Dr. Swaibu Mbowa, senior research fellow at EPRC proposed that in the preparation of people going out they can be taught to have businesses to return to.

"It will drive them to have hope while working. We need to think of opportunities in an environment that is difficult. People travelling need to be guided, if you were grown in an environment without guidance you cannot do certain things and you will need help," Mbowa said.