The informal sector in Uganda is facing a significant threat as illegal migrant workers are taking over jobs meant for locals, according to a report by the Auditor General, Edward Akol. The report highlights that despite the government's efforts to control work permits, many migrant workers with expired permits have found ways to continue working in the country, leading to illegal employment and loss of revenue.

The Auditor General's report, which covers the period from 2020 to 2024, reveals a 26% increase in the number of work permits issued, from 11,229 to 14,185. However, this increase was not accompanied by a corresponding increase in resources to monitor migrant workers, leading to a lack of enforcement and exploitation by illegal workers.

The report also found that between 2020 and June 2023, 6,035 work permits had expired, but 85% of the permit holders, constituting 5,048 people, failed to leave the country. Furthermore, between July 2019 and June 2023, 102 foreign nationals overstayed their permits and were met with fines. However, their employers were not penalized despite knowing that the foreign workers' permits had expired.

The lack of enforcement has resulted in a fine shortfall of approximately Shs306 million, which has not been collected. The Directorate of Citizenship and Immigration Control has deported 2,403 workers and regularized 1,969 others after discovering many foreigners operating private enterprises unlawfully.

The Auditor General's report notes that migrant labor creates competition for the few available jobs, leading to local businessmen expressing their displeasure about the existence of illegal foreigners. The report also highlights instances where foreign nationals did not leave the country following the expiry of their work permits, resulting in illegal employment of foreign nationals and loss of revenue.

The Directorate of Citizenship spokesperson, Mr. Simon Mundeyi, attributed the enforcement lapses to staffing shortages. He pointed out that the organization needs 2,000 enforcement officers but only has 700, which limits their capacity to monitor and follow up with those who have expired work permits and those engaged in petty work.

The report's findings have significant implications for Uganda's informal sector, which is already struggling to create jobs for locals. The lack of enforcement and exploitation by illegal workers could lead to further job losses and revenue decline. The government needs to take urgent action to address the issue and ensure that migrant workers are properly monitored and regulated.

In conclusion, the Auditor General's report highlights a critical issue that needs to be addressed to protect Uganda's informal sector and ensure that jobs are available for locals. The government must take steps to increase resources for monitoring migrant workers, penalize employers who hire illegal workers, and ensure that fines are collected to prevent revenue loss.