In a significant move to combat money laundering and streamline the flow of foreign currency in Uganda, the Bank of Uganda (BoU), under the leadership of Governor Michael Atingi-Ego, has announced the rollout of a new remittance form for commercial banks and other remittance financial entities, including forex bureaus.
According to a statement released by the BoU, this initiative is part of the broader PRIME Africa Programme, implemented by the International Fund for Agricultural Development (IFAD) with financial support from the European Union (EU).
“Together with the International Fund for Agricultural Development (IFAD), we are rolling out a new form for commercial banks and money remittance providers such as forex bureaus to report on remittances,” the statement from BoU reads in part.
A Game-Changer for Financial Inclusion
The new remittance form is designed to provide more granular, transaction-level data, enabling evidence-based policymaking towards financial inclusion. According to BoU, this form will help to enhance the capture and utilisation of data on remittances, which is one of Uganda’s most strategic financial flows.
With USD1.4 billion in annual remittance inflows, nearly five trillion Uganda shillings, remittances are poised to overtake Official Development Assistance and feature prominently in Uganda’s second National Financial Inclusion Strategy, according to BoU’s projections.
Strategic Potential for Growth
The EU Delegation representative, Mrs. Sanne Willems, emphasised the strategic importance of remittances to Uganda’s economy and urged stakeholders to sustain dialogue in the remittance space.
On his part, Wilbrod Owor, the Executive Director of the Uganda Bankers’ Association (UBA), highlighted the tremendous opportunity for financial service providers to support migrants and their families with tailor-made products. He noted that partnerships between banks and fintechs are crucial to improve the cost and speed of transactions.
Harnessing the Potential of Remittances
In addition, Owor revealed that as part of rolling out this new strategy, the UBA Annual Banking Conference this year will be themed, “Harnessing the Potential of Maximising the Impact of Remittances.”
He noted that this conference will present a unique opportunity for stakeholders to explore ways to maximise the impact of remittances on Uganda’s economy.
Mohammed El-Ghazaly, IFAD’s Country Representative in Uganda, underlined the transformative nature of remittances, especially in rural areas, and launched a call to everyone to join in commemorating the International Day of Family Remittances (IDFR) on June 16, 2025.
The rollout of the new remittance form is a significant step towards curbing money laundering and enhancing financial inclusion in Uganda.
With the potential to revolutionise the way Uganda captures and utilises data on remittances, this initiative can unlock the full impact of remittances and diaspora investment for sustainable development in Uganda.
In his concluding remarks, Owor pointed out that as stakeholders, everyone should commit to leveraging the National Stakeholder Network engagement beyond the PRIME Africa Program, which ends in December 2025, because the future of remittances in Uganda is bright!