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In a bid to streamline the remittance process and reduce the cost of sending money to Uganda, the Bank of Uganda (BoU) has launched a newly designed remittances data collection form in collaboration with the International Fund for Agricultural Development (IFAD).
This new form, unveiled during the 8th National Remittances Stakeholder Network workshop on 15 April 2025, is expected to revolutionise how the country captures and utilises data on remittance flows.
The launch comes as part of the broader effort to improve financial inclusion and policy making in Uganda, a nation that receives significant remittances from its diaspora.
The newly designed data collection form will be used by all remittance service providers, who will submit detailed data on a weekly basis using this template.
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The rollout will take place over the next two months, initially involving commercial banks, with plans to onboard Local Money Remittance Providers, including forex bureaus, later on.
This initiative is a key part of BoU’s commitment to creating a more transparent remittance landscape, enabling better policy decisions and more targeted interventions.
Granular Data to Enhance Financial Inclusion
During the workshop, Mrs. Milly Nalukwago Isingoma, BoU’s Director for Statistics, underscored the importance of transitioning to transaction-level data.
“By moving towards more granular data, we can enhance evidence-based policymaking, which will support private sector strategies and contribute to Uganda’s economic growth,” she explained.
This shift aims to reduce the high cost of remittances to Uganda, which currently stands at 15%—well above the Sustainable Development Goal (SDG) target of 3%.
The focus will particularly be on the Tanzania to Uganda corridor, where costs are disproportionately high.
BoU and IFAD officials emphasised that better data collection will allow Uganda to make informed decisions on how to reduce remittance costs, which is critical for boosting financial inclusion and improving the livelihoods of Ugandans.
Strategic Potential for Uganda’s Economy
Remittances have become a cornerstone of Uganda’s economy, with approximately USD $1.4 billion annually flowing into the country—nearly five trillion Uganda shillings. These inflows are poised to surpass Official Development Assistance (ODA) and play an increasingly important role in Uganda’s financial inclusion strategy.
Mr. Mohammed El-Ghazaly, IFAD’s Country Representative in Uganda, highlighted the transformative power of remittances, particularly in rural areas, and expressed the need to enhance the full potential of these flows for sustainable development.
The upcoming International Day of Family Remittances (IDFR) on 16 June 2025 will provide a platform for further dialogue, alongside the Fourth International Conference on Financing for Development, which aims to unlock new opportunities for remittance-based investments.
BoU and other stakeholders, including the Uganda Bankers’ Association (UBA), are committed to continuing their work on remittance policy beyond the conclusion of the PRIME Africa programme in December 2025.
UBA’s Executive Director, Mr. Wilbrod Owor, stressed the importance of partnerships between banks, fintechs, and financial service providers to improve the speed and affordability of remittances.