Speaking at the launch, Deputy Governor Augustus Nuwagaba described remittances as “a critical economic lifeline,” noting that they not only support millions of households but also provide a stable source of foreign exchange, rivaling traditional exports such as coffee and tourism.
“Diaspora inflows are no longer just social transfers,” Nuwagaba said. “They are now a strategic financial resource that strengthens Uganda’s balance of payments and macroeconomic stability.”
According to BoU data, the largest share of remittances originates from the United States, the Middle East, and South Africa , reflecting migration and employment trends among Ugandans abroad. Recent estimates show remittances contribute over 5% of Uganda’s GDP , highlighting their macroeconomic significance.
The newly launched portal introduces a granular, transaction-level data collection system, expanding coverage to include more commercial banks, fintech firms, and remittance service providers. This will enable more frequent and accurate reporting, giving policymakers deeper insights into inflow patterns, seasonal trends, and usage.
Officials say the enhanced framework is expected to improve evidence-based decision-making, support exchange rate stability, and encourage innovation in digital financial services.
Meanwhile, Mohamed El Ghazaly of the International Fund for Agricultural Development emphasized the developmental potential of these funds, urging better utilization.
“Remittances should go beyond consumption,” he noted. “They can be leveraged to drive **financial inclusion, investment in agriculture, and small business growth**, especially in rural communities.”
However, challenges remain. Uganda’s **average remittance transaction cost stands at about 8%**, significantly higher than the **United Nations Sustainable Development Goal target of 3%**. High fees continue to limit the full economic benefits for recipients.
BoU Director of Economic Statistics, Milly Isingoma, said the new system will help identify inefficiencies in the remittance ecosystem.
“With better data, we can pinpoint cost drivers and design policies that make transfers cheaper, faster, and more accessible,” she said.
As remittance inflows continue to rise, the new portal positions Uganda to **better harness diaspora contributions**, shaping smarter policies and unlocking new opportunities for economic growth.