Ugandan banks push to unlock full potential of diaspora earnings

Inflows from Ugandans abroad rose to $1.4 billion (about Shs5 trillion), surpassing traditional earners like tourism and coffee, and reinforcing the growing importance of diaspora remittances to Uganda’s economy.

However, this figure still falls short of the country’s potential. The Uganda Bankers’ Association (UBA) believes remittances can grow tenfold to $14 billion (Shs50 trillion) over the next 15 years, if the right frameworks are implemented.

UBA says that even at current levels, diaspora remittances have transformative potential for both the economy and household livelihoods, hence the theme “Harnessing the Potential and Maximizing the Impact of Remittances on Development” for the 8th Annual Bankers Conference slated for July 29 in Kampala.

“Remittances are not just transfers of money; they are powerful drivers of development. They support poverty alleviation, healthcare, education, real estate and other sectors,” said UBA Chairperson, Julius Kakeeto.

The flagship conference is being held in partnership with the Bank of Uganda, International Fund for Agricultural Development (IFAD), and Mastercard as title sponsor. It will convene players from labour export firms, policymakers, financial institutions, civil society, and academia.

Kakeeto emphasized that remittances now account for 3 percent of GDP, underscoring the need to optimise their use through policy, financial innovation, and awareness.

In Africa, Egypt leads with $24.2 billion in annual remittance inflows, followed by Nigeria ($20.5 billion) and Morocco ($12.1 billion). In East Africa, Kenya tops with $4.4 billion. Uganda is steadily rising, with more than two million nationals working abroad, mostly in the Middle East, Europe, North America, and increasingly, in Asia and Scandinavia.

UBA Executive Director Wilbrod Owor noted the complex nature of the remittance ecosystem and called for targeted policy and market responses. He said the Middle East accounts for frequent but smaller transactions, while Western countries contribute fewer but larger remittances.

As Uganda pushes towards its Vision 2040 goal of $500 billion GDP, financing strategies—including diaspora remittances—are critical. The conference will address how these funds can contribute more effectively to infrastructure, services, and financial inclusion.

Key topics include how to mitigate remittance risks like fraud and currency volatility, leveraging financial institutions for product development, and improving regulatory frameworks. The role of technology will also feature prominently.

Mastercard’s East Africa head, Shehryar Ali, noted: “We’re setting new standards in payment technologies to make remittance flows faster, safer, and more inclusive.”

The one-day conference aims to chart a roadmap for making remittances a true catalyst for Uganda’s long-term development.