[patrick mwebesa]

Investments minister Aston Kajara (left) is welcomed at the Diaspora Home is Best Summit at Hotel Africana by UIA board member Chris Senabulya and Maggie Kigozi

By David Ssempijja

REMITTANCES from Ugandans working abroad are expected to reach $980.9m (about sh2.3 trillion) this year, according to statistics from Bank of Uganda. But there is concern that most of this money is misused by the relatives of people in the diaspora, with some outrightly fleecing them instead of investing it.

Moses Wilson, the president of the Ugandan North American Association, said although the diaspora remittances rose to over $778m last year, from $732m in 2008, a bigger part was used for the day-to-day living expenses of relatives, school fees, medical expenses and home improvement and not invested.

“The potential of investments is greatly handicapped by lack of trust. Stories abound of significant sums of money remitted by individuals to friends or family for investment projects, which never materialised,” he said in a paper presented by Edriss Kironde from Colorado in the US at the fourth ‘Home is Best Summit’ at Hotel Africana in Kampala recently.

The annual event is organised by the Uganda Investment Authority to interest Ugandans in the diaspora in investing home.

Earlier, the Central Bank director for research, Dr David Kihangire, had expressed dissatisfaction, saying over 50% of the remittances were spent on non-profitable ventures instead of investments.

Remittances into Uganda are expected to reach $980.9m by the end of this year, according to statistics from Bank of Uganda show.