Uganda received a record $1.4 billion (about UGX 5 trillion) in diaspora remittances in 2024, surpassing traditional foreign exchange earners like tourism and coffee. The surge highlights the growing influence of Ugandans abroad in shaping the country’s economic trajectory and underscores the untapped potential of diaspora capital. According to the Uganda Bankers’ Association (UBA), remittance inflows now account for approximately 3% of Uganda’s Gross Domestic Product (GDP). While this marks a significant milestone, the association believes the country is still scratching the surface. With the right policies and frameworks in place, remittances could grow tenfold to $14 billion (UGX50 trillion) annually over the next 15 years. Uganda currently has over two million citizens working abroad—primarily in the Middle East, Europe, North America, and more recently, in Asia and Scandinavia. These workers regularly send money home, supporting households and contributing to broader economic activity. To explore this potential, UBA will host the 8th Annual Bankers Conference come July 29, 2025, under the theme “Harnessing the Potential and Maximizing the Impact of Remittances on Development.†The conference will convene stakeholders from financial institutions, government, civil society, academia, and labour export firms to examine how remittances can be better leveraged to support Uganda’s development agenda. “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 Julius Kakeeto, Chairperson of UBA. The conference, organised in partnership with the Bank of Uganda, the International Fund for Agricultural Development (IFAD), and Mastercard as the title sponsor, aims to create a roadmap for maximizing the economic and social benefits of remittances. In the African context, Uganda is steadily climbing the ranks in remittance inflows. Egypt leads the continent with $24.2 billion annually, followed by Nigeria ($20.5 billion) and Morocco ($12.1 billion). Within the East African region, Kenya tops the chart with $4.4 billion in annual inflows. UBA Executive Director Wilbrod Owor pointed out the complexity of the remittance ecosystem, noting that different regions contribute in varied ways. He noted that while remittances from the Middle East are frequent but smaller in size, those from Europe and North America tend to be fewer but significantly larger. “The diverse nature of remittance flows requires targeted policy and market responses,†Owor said. “This includes creating an enabling regulatory environment, reducing transaction costs, and improving access to financial products tailored to remittance receivers.†The conference will focus on several key areas: Mitigating risks associated with remittances, such as fraud and currency volatility; encouraging financial institutions to develop savings and investment products for recipients; strengthening regulatory frameworks to ensure transparency and consumer protection; leveraging digital technology to improve the speed, safety, and affordability of transfers. Mastercard’s East Africa head, Shehryar Ali, highlighted the company’s role in modernising the remittance landscape. “We’re setting new standards in payment technologies to make remittance flows faster, safer, and more inclusive,†he said, adding that digital platforms are key to unlocking the full potential of remittances. The discussions will also feed into Uganda’s long-term economic vision. As the country works towards its Vision 2040 target of a $500 billion GDP, diversified financing strategies including diaspora remittances will be critical for infrastructure development, social services, and inclusive growth.
