Uganda – International Day of Family Remittances (IDFR)

Uganda

IDFR 2024

IDFR EDITIONS

Observance event

13 June 2024, Kampala, Uganda

8:30 – 12:30 EAT, Golden Tulip Canaan
Provisional agenda

Uganda IDFR Observance, flash report

Highlights of the IDFR Observance

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The International Day of Family Remittances (IDFR) is a universally-recognized observance adopted by the United Nations General Assembly (Resolution A/RES/72/281) and marked every year on 16 June.Every year, the IDFR highlights the significant contribution of over 200 million migrants, through the remittances they send home, to improve the lives of over 800 million family members. This Day draws our attention to the economic impact of these money flows nations, and recognises the sacrifice, separation and generosity of migrants.By 2030, it is projected that globally US$5 trillion will have been sent home by migrants to lower- and middle- income countries. Much of this money goes directly to rural areas where 80 per cent of the world’s poor live, face food shortages, and the impacts of climate change are the most pronounced.Remittances, sent by migrants and diaspora communities, directly support millions of families to achieve their own Sustainable Development Goals (SDGs). They contribute directly to poverty alleviation, education, healthcare, small business development, gender equality, and rural economic growth.

IDFR 2024 Uganda

Uganda is the seventh-largest remittance recipient in sub-Saharan Africa and the ninth-largest receiving country in Africa. In 2023, according to the Central Bank of Uganda, remittance flows reached over US$1.4 billion, accounting for nearly 3.0 per cent of the country’s gross domestic product (GDP) and representing a leading source of foreign exchange.

Celebrating Successes

Remittances, especially digital remittances, have been growing steadily after the decline due to the Covid crisis. Uganda has a sound financial inclusion landscape; over 81 per cent of the adult population has access (formal & informal) to financial services.

The Central Bank of Uganda (BOU) is leading efforts to enable the remittances industry environment.

Since 2006, the BOU’s Annual Personal Transfer Survey (APTS) has sheds light on the profiles of remittance senders and recipients, the channels used to send money, and the use of remittances.
In 2020, the Bank, thanks to the new National Payments System Act, established a clearer market setting for digital financial service providers and payment service providers, which supports increased competition and greater consumer protection.
In 2023, unveiled the second National Financial Inclusion Strategy (2023-2028), which indicates remittances  as a crucial means to achieve financial inclusion, with specific action points and KPIs.

Uganda has a clear and well-defined regulatory environment for remittances, complimented by a well-developed payment system that provides interoperability between all financial service providers and fosters a competitive remittance market. Uganda has well-established civil registration and national identification systems, and over two-thirds per cent of people have a national ID.

The Uganda Government established the Diaspora Unit under the State House and the Ministry of Foreign Affairs to facilitate and extend services to the Ugandans in the Diaspora and attract diaspora investments to Uganda.

Leave No One Behind

However, there is still more to do.

The cost of sending money to Uganda remains high. The current average cost of sending US$200 to Kenya is 12.65 per cent of the amount sent (World Bank Q3 2024). This figure is above the SDG‑recommended 3 per cent and the average cost for sub‑Saharan Africa (7.90 per cent, World Bank Q3 2024) and other intra‑African corridors.

While financial inclusion access in Uganda shows positive trends, financial health has declined between 2018 and 2023. There is room to leverage remittances with adjacent products (savings, credit, insurance, etc), especially in rural areas and for vulnerable groups (women, youth and refugees).

The Central Bank of Uganda remains dedicated to listening and responding to the needs of the industry and continue to strengthen the enabling environment for remittances in 2024 with:

The plan is to undertake the annual Annual Personal Transfer Survey to collect insights from the remittance receivers, inform public policy, and inspire the private sector to address unmet financial needs.
Continue to work with IFAD to improve remittance data collection.

As highlighted in the BOU’s APTS and IFAD’s Remitscope, remittances in Uganda are predominantly urban phenomena, with much of the inflow going to the central region and Kampala. Therefore, significant effort should be made to expand the access points in the other regions and rural areas.

Despite the well-established civil registration and national identification systems, over one-third of Ugandans don’t have a national ID. Uganda hosts the largest population of refugees in Africa. Despite significant improvements in terms of financial inclusion, this group is still facing ID verification challenges to access international remittances and other financial services.

Join us, and let us work together, one family at a time, to digitalize remittances, thereby promoting financial inclusion and cost reduction and leaving no one behind.

Provisional agenda

08:00- 9:00 am	Registration and Welcome Coffee
*09:00 – 09:15*	Welcome Remarks Mohamed El-Ghazaly, Country Director, IFAD
09:15-09:45 am	Opening Remarks Nicolas Gonze, Team Leader Governance and Social Inclusion, EU Delegation to UgandaAlex Ochan, Head of Financial Inclusion Division, Bank of Uganda
09:45-10:45 am	Celebrating Successes on “Cost Reduction, Digitalisation & Financial Inclusion” SPEAKERS Moses Banturaki, Relationship Manager Digital Banking, Ecobank Doreen Lukandwa, VP: Global Enterprise, Onafriq Fatumah Shamim Kavuma, Manager International Remittances, MTN Mobile Money Uganda MODERATOR Edwin Byaruhanga, Adviser, Digital Frontiers Association Q&A
10:45-11:20 am	*Coffee break and Group Picture*
11:20 am-12:20 pm	How to“Leave No One Behind” SPEAKERS Anthea Paelo, Intervention Manager Business Environment, FSD Uganda Barry Cooper, Technical Director, Cenfri Md Arifur Rahman, Senior Development Officer, UNHCR MODERATOR David Berno, Remittances and Digital Finance Officer, IFAD Q&A
12:20 -12:30 pm	*Closing Remarks*
12:30- 14:00 pm	*Lunch and Departure*