Remittances are more than mere financial transactions; they are the bedrock of Uganda’s economic resilience, a lifeline for millions of families, and a powerful engine for national development. This was the central message delivered by Julius Kakeeto, the Managing Director of Post Bank and Chairperson of the Uganda Bankers Association (UBA), during his opening remarks at the 8th Annual Bankers Conference held today.
Held under the theme, ‘Harnessing the Potential and Maximising the Impact of Remittances on Development,’ the conference convened thought leaders and financial experts, among them Bank of Uganda Governor Mr. Michael Atingi-Ego and Stanbic Bank Chief Executive Officer, Kenneth Mumba Kalfungwa, to deliberate on transforming these vital inflows into sustainable, long-term growth for Uganda.
“Behind every dollar, pound, dirham or shilling sent home is the story of sacrifice, perseverance, and hope,” Kakeeto articulated, highlighting the profound human element driving remittances.
Remittances are Uganda’s Unsung Economic Hero
According to Kakeeto, Uganda’s remittance story is indeed compelling. He noted that globally, and significantly for Uganda, remittances consistently surpass both Foreign Direct Investment (FDI) and Official Development Aid (ODA) as a source of external finance.
He revealed that in 2023, Uganda received over USD1.4 billion in remittances, demonstrating their critical role in poverty alleviation, employment generation, and fostering economic resilience at both household and national levels.
They are, therefore, the invisible threads that connect families, sustain livelihoods, and, when strategically managed, become powerful engines of inclusive, long-term growth.
Kakeeto stressed that the 8th Annual Bankers Conference aims at delving into four critical areas, which include;
The profound economic impact of remittances on growth and development.
The constraints and risks within the remittance ecosystem.
The technological innovations shaping their future, and
The pivotal role of financial institutions in harnessing and scaling this potential.
“As Uganda Bankers’ Association, we expect that this engagement will lead to strategies for addressing structural and logistical bottlenecks, stronger policies and frameworks, and innovative financial sector proposals that unlock the full potential of remittances, including as a funding source for long-term infrastructure and inclusive development,” Kakeeto emphasised, laying out a clear vision for actionable results.
Post Bank’s Wendi and Safeguarding Diaspora Investments
Post Bank, a key sponsor of this year’s conference, underscores the banking sector’s commitment to enhancing remittance flows.
“At Post Bank, we take pride in being part of this solution. Our Wendi Mobile Wallet now enables customers to send and receive Western Union remittances seamlessly,” Kakeeto announced.
This innovation is part of Post Bank’s broader commitment to creating accessible, secure, and inclusive financial services, especially for the diaspora community and rural Ugandans who are often the primary beneficiaries of these funds.
He noted that through platforms like Wendi, the significant impact of remittances on home ownership, education, and economic resilience becomes more reachable than ever.
However, he observed that the UBA also acknowledged a critical concern raised by the diaspora community, which is the growing dissatisfaction with the quality of properties financed through mortgage arrangements with some developers.
Recognising that “Every shilling sent from abroad is hard-earned and must never be lost to poor standards or oversight,” Kakeeto revealed that the UBA is proactively introducing robust safeguards which include:
Increasing the developer liability period to two years.
Ensuring developers remain active members of condominium boards.
Dedicating special teams to guide diaspora clients on property purchases and their rights.
Enforcing rigorous reprimand clauses when standards are breached.
These measures, he pointed out, underscore the banking sector’s commitment to protecting diaspora investments and fostering trust, ensuring that the hard-earned money sent home contributes meaningfully to tangible assets.
“Wherever we may be in the world, home remains our greatest treasure. Together, let us build a stronger, more inclusive, and more prosperous Uganda,” Kakeeto concluded, stressing that the spirit of collaboration and forward-thinking is essential for harnessing the full power of remittances for Uganda’s economic development.