Uganda is the seventh-largest recipient of remittances in sub-Saharan Africa and the ninth-largest recipient country in Africa. In 2023, according to the Central Bank of Uganda (BoU), remittance flows reached over US$1.4 billion, accounting for nearly 3 per cent of the country’s gross domestic product (GDP) and representing a leading source of foreign exchange.

However, the cost of sending money to Uganda remains high. Currently, the average cost of sending remittances to Uganda stands at 15 per cent (World Bank Q3 2024), significantly higher than the SDG target of 3per cent, the global and regional average, albeit being heavily skewed by the cost in the Tanzania to Uganda corridor.

Uganda’s diaspora—estimated at over two million people—plays a growing role in national development, not only through personal remittances but also through direct investments, skills transfer, and philanthropy. Uganda hosts the largest refugee population in Africa. Despite significant improvements in financial inclusion, this group continues to face challenges with ID verification when accessing international remittances and other financial services.

In 2023, the second National Financial Inclusion Strategy (2023-2028) included remittances as a crucial means to achieve financial inclusion, with specific action points and KPIs.

BoU, in collaboration with the International Fund for Agricultural Development (IFAD), launched a newly designed remittances data collection form which aims to collect remittances granular data to inform policy and private sector business strategy.

The IDFR 2025 event and campaign offered an opportunity to reflect on the transformative impact of remittances and to amplify initiatives that leveraged remittances for greater financial inclusion and sustainable development. The event was organized by IFAD and IOM, in collaboration with the UN Network on Migration (UNNM) in Uganda.

Objectives

• To recognize and celebrate the role of Ugandan migrant workers and diaspora communities in supporting their families and national economy.
• To promote policy dialogue on maximizing the development impact of remittances in Uganda, in line with the Sustainable Development Goals (SDGs).
• To showcase innovative financial products and services that enhanced the productive use of remittances.
• To strengthen partnerships among public institutions, financial service providers, diaspora groups, and development actors.
• To align national remittance strategies with global commitments, including the Financing for Development (FfD4) agenda.

Key Focus Areas

• Digital and Financial Inclusion: Enhancing access to formal financial services, particularly for rural and underserved remittance-receiving households.
• Diaspora Investment and Entrepreneurship: Highlighting investment opportunities and instruments that enabled Ugandans abroad to participate in national development.
• Gender Empowerment: Promoting remittance-linked services that supported women’s economic participation.
• Resilience in Climate-Vulnerable Areas: Linking remittance flows to climate adaptation, rural livelihoods, and community resilience strategies.

Expected Outcomes

• Greater visibility of remittances as a driver of inclusive growth and poverty reduction in Uganda.
• Commitments from stakeholders to collaborate on improving the remittance ecosystem (cost, access, transparency).
• Identification of policy and regulatory reforms to integrate remittances into national development frameworks.
• Launch or scaling up of inclusive financial products and diaspora investment mechanisms.

Partners and Stakeholders

• Government: State House, Office of the Prime Minister, Ministry of Finance, Planning and Economic Development, Bank of Uganda, Ministry of Foreign Affairs, Ministry of Gender, Labour and Social Development, National Coordination Mechanism on Migration (NCM)
• Development Partners: IFAD, IOM, UN Network on Migration members
• Private Sector: Banks, Money Transfer Operators (MTOs), Fintechs, Mobile Money Providers
• Civil Society & Academia: Think tanks, diaspora organizations

Contact Information

For more information please contact:

• David Berno, Remittances and Inclusive Digital Finance Officer, IFAD – [email protected]
• Bisharo Ali Hussain, Migration Governance and Policy Development Officer, IOM – [email protected]

Agenda