Uganda’s diaspora continues to play a transformative role in national development, with remittances reaching over $1.5 billion (approximately $5.6 trillion) in 2023 equivalent to 3% of the country’s GDP, according to the Bank of Uganda.
As the world marked the International Day of Family Remittances (IDFR) 2025, the central bank hailed remittances not only as vital support for families but as a powerful engine for sustainable economic growth.
“Uganda continues to benefit immensely from the dedication and resilience of its diaspora,” said Milly Nalukwago Isingoma, Director of the Statistics Department at the Bank of Uganda.
“These funds are not just remittances—they are lifelines. They pay for health care, educate children, fund housing, and support entrepreneurship.”
The Bank of Uganda joined this year’s IDFR global campaign with a strong endorsement of its five-point agenda which includes reducing the high cost of remitting funds and leveraging technology to promote inclusive financial access.
“This campaign rightly calls for recognizing remittances as a critical force in financing development,” Isingoma noted.
Isingoma added, “We fully support efforts to lower remittance costs from an average of 15% to 3%, expand digital financial inclusion, and create investment instruments that tap into diaspora capital.”
In partnership with IFAD, Uganda’s central bank has already taken bold steps to improve remittance oversight by modernizing its data framework. The upgraded system now integrates fintechs and mobile money operators, enabling real-time, weekly transaction-level reporting.
“This reform is not just technical, it’s transformative. It ensures transparency, supports targeted policymaking, and builds resilience across the financial system,” Isingoma stressed.
Uganda’s Second National Financial Inclusion Strategy (NFIS 2023–2028) further positions remittances as a key pillar for empowering households and expanding access to financial services like savings, credit, and insurance especially for rural and climate-vulnerable communities.
“We see remittances as more than just personal support—they’re a springboard for inclusive finance,” Isingoma added.
Further noted, “We are committed to transforming every dollar sent home into long-term opportunity, ensuring no family is left behind.”
With over USD 1.5 billion in inflows annually, Uganda is among Africa’s top recipients of remittances.
Isingoma urged, “Let us use the momentum of the IDFR 2025 campaign to unlock the full potential of remittances as a billion-dollar development force for Uganda and beyond.”
“Let us use the momentum of the IDFR 2025 campaign to unlock the full potential of remittances as a billion-dollar development force for Uganda and beyond,” Isingoma urged.
