Leaders in Uganda’s labour export sector have launched the Kampala and Beyond External Labour Recruiters SACCO Ltd, calling on government to increase support for the industry.
The labour export sector is urging stronger government backing and market diversification following disruptions linked to geopolitical tensions in the Middle East, as stakeholders establish a new cooperative financial structure to stabilise operations.
The Kampala and Beyond External Labour Recruiters SACCO Ltd has been officially launched to unite labour recruitment companies, agents, and migrant worker stakeholders under a savings and credit cooperative aimed at improving financial resilience in the sector.
Speaking at the launch, SACCO Chairperson Moses Karamagi Guma said the initiative is designed to cushion industry players against operational shocks, especially those linked to recent instability affecting labour destinations.
“Our business has been affected in so many ways, and that is why you saw recently the government put out a list of around 170 companies that were either delisted or terminated due to failure to meet the standards required by the ministry,” Karamagi said.
He explained that the SACCO will serve as a financial safety net, offering affordable loans and savings mechanisms to help companies remain compliant, sustain operations, and recover during periods of disruption.
“We also help members by giving them loans at lower rates compared to banks and microfinance institutions so that in case they are stuck, they can borrow from the SACCO and revive or reinstate their licences,” he added.
Karamagi further warned that Uganda’s heavy reliance on the Middle East labour market exposes the sector to external shocks, calling for expansion into other regions.
“The recent war really showed us that the Middle East market should be expanded. We should go beyond the Middle East because when they had a problem, the effects were immediate,” he said.
Uganda’s labour export industry has grown significantly over the past decade, driven by high youth unemployment and demand for migrant workers in Gulf countries. According to sector estimates cited by stakeholders, remittances from Ugandans abroad contribute billions of dollars annually to the economy, rivaling traditional exports such as coffee.
Board member Ian Kaijuka highlighted the economic significance of migrant labour, noting that remittances are becoming a major pillar of Uganda’s foreign income.
“The latest report from the Bank of Uganda places remittances at $2.5 billion. Those remittances are competing very favourably with coffee exports,” Kaijuka said.
He argued that strategic investment in labour externalisation could accelerate national economic gains, given Uganda’s large youth population entering the labour market.
Kaijuka also raised concerns over the protection of migrant workers abroad, calling for stronger diplomatic and institutional support.
“We need labour attachés who can follow up migrant workers wherever they are and address their concerns,” he said, urging government to strengthen oversight in foreign missions.
SACCO leaders say the new cooperative structure will not only enhance financial stability among recruitment companies but also improve worker welfare and promote long-term savings culture among Ugandans employed abroad.
The launch comes at a time when Uganda’s labour export industry is under increased scrutiny over regulatory compliance, worker protection, and diversification of destination markets beyond the Middle East.
