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Uganda’s diaspora: A strategic partner
Our diaspora community is one of the country’s most valuable assets, bringing into our economy much-needed financial remittances, professional expertise, entrepreneurial experience, international networks and innovative ideas that can accelerate national development, writes Milly Babirye Babalanda
Milly Babirye Babalanda. (File)
By: Admin ., Journalist @New Vision
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OPINION
By Milly Babirye Babalanda
Uganda’s socio-economic transformation requires the collective effort of all citizens, wherever they live. Our diaspora community is one of the country’s most valuable assets, bringing into our economy much-needed financial remittances, professional expertise, entrepreneurial experience, international networks and innovative ideas that can accelerate national development.
Over the past few months, I have interacted with Ugandans living abroad and members of forced migrant communities residing in Uganda.
In mid-September, I participated in a high-level conference for diaspora and forced migrant communities at the Ministry of the Presidency Conference Hall. I subsequently engaged Ugandans in Dubai and then members of our diaspora in Australia during last week’s UG@64 Australasian Independence celebrations in Melbourne.
These engagements strengthened my appreciation of their patriotism, achievements and willingness to contribute to Uganda’s progress. Therefore, we, as government, must deliberately support the President in harnessing this goodwill and turn it into meaningful development outcomes.
The Economic power of our diaspora
In the 12 months leading up to March 2026, diaspora remittances reportedly reached approximately $2.8b (equivalent to more than sh10 trillion), up from about $1.9b (or over sh7 trillion) in the preceding year. These inflows represented approximately four per cent of Uganda’s gross domestic product (GDP), demonstrating the diaspora’s importance to household welfare and the national economy. Remittances enable families to educate children, access healthcare, build homes, acquire productive assets and establish small businesses. They also provide financial support during emergencies and economic hardships.
However, my interactions informed me that we should move beyond relying primarily on remittances for household consumption. We need to encourage more diaspora savings to finance productive investments in commercial agriculture, agro-processing, manufacturing, tourism, renewable energy, information technology and other sectors. Such investments can generate employment, especially for young people, strengthen domestic value chains and expand Uganda’s productive capacity. Diaspora members can also connect Ugandan businesses to international markets by helping entrepreneurs understand foreign consumer preferences, quality standards and regulatory requirements.
Strengthening government engagement
I commend the Government for strengthening engagement with Ugandans abroad through the Office of the President’s Diaspora Affairs Unit, headed by Ambassador Abbey Walusimbi, the Senior Presidential Advisor on Diaspora Affairs. Diaspora participation requires sustained communication, reliable information and practical institutional support. I am delighted that Government continues providing accessible guidance on investment opportunities, business registration, land transactions, taxation and the legal requirements for establishing enterprises in Uganda. Equally important is protecting investors against fraud, corruption, bureaucratic delays and other practices that undermine confidence.
Tax compliance and knowledge transfer
National development also depends on responsible citizenship and compliance with tax laws. Under Section 17(2)(a) of Uganda’s Income Tax Act, individuals classified as tax residents may be liable for income earned locally and abroad, subject to applicable exemptions and other provisions.
The Uganda Revenue Authority should continue providing the Ugandans in the diaspora with clear guidance, promote voluntary compliance and ensure fairness and transparency. Appropriate mechanisms, including foreign tax credits in qualifying circumstances, can help address double taxation.
However, my interactions informed me that we should move beyond relying primarily on remittances for household consumption. We need to encourage more diaspora savings to finance productive investments in commercial agriculture, agro-processing, manufacturing, tourism, renewable energy, information technology and other sectors. Such investments can generate employment, especially for young people, strengthen domestic value chains and expand Uganda’s productive capacity. Diaspora members can also connect Ugandan businesses to international markets by helping entrepreneurs understand foreign consumer preferences, quality standards and regulatory requirements.
Strengthening government engagement
I commend the Government for strengthening engagement with Ugandans abroad through the Office of the President’s Diaspora Affairs Unit, headed by Ambassador Abbey Walusimbi, the Senior Presidential Advisor on Diaspora Affairs. Diaspora participation requires sustained communication, reliable information and practical institutional support. I am delighted that Government continues providing accessible guidance on investment opportunities, business registration, land transactions, taxation and the legal requirements for establishing enterprises in Uganda. Equally important is protecting investors against fraud, corruption, bureaucratic delays and other practices that undermine confidence.
Tax compliance and knowledge transfer
National development also depends on responsible citizenship and compliance with tax laws. Under Section 17(2)(a) of Uganda’s Income Tax Act, individuals classified as tax residents may be liable for income earned locally and abroad, subject to applicable exemptions and other provisions.
The Uganda Revenue Authority should continue providing the Ugandans in the diaspora with clear guidance, promote voluntary compliance and ensure fairness and transparency. Appropriate mechanisms, including foreign tax credits in qualifying circumstances, can help address double taxation.
Beyond financial contributions, diaspora professionals in medicine, engineering, agriculture, accounting, information technology, education, research and business management possess expertise that can strengthen local institutions and enterprises. Government should facilitate professional exchanges, mentorship programmes, research partnerships and virtual knowledge-sharing initiatives.
Investment and national transformation
Uganda’s Fourth National Development Plan (NDP IV), covering FY2025/26–2029/30, prioritises wealth creation, employment, industrialisation and higher household incomes as part of the ambition for tenfold economic growth by 2040.
Ugandans abroad should be encouraged to invest in agriculture, tourism, manufacturing, healthcare, technology, construction and other productive sectors. Those unable to return permanently can participate through joint ventures, partnerships, investment funds and professional exchanges. By familiarising themselves with government programmes and investment facilitation services, diaspora members can identify opportunities that align with their expertise and financial capacity.
Diaspora as national ambassadors
Ugandans abroad can also promote tourism, attract investors, support exporters and showcase Uganda’s cultural heritage. Through cultural festivals, professional associations and business forums, they can strengthen international relationships and promote the country as a destination for business, tourism and investment.
Protecting investors, partnerships
I sincerely thank our President, Yoweri Kaguta Museveni, for his efforts to create a conducive investment environment. Initiatives such as the State House Investors Protection Unit and the Electronic Investors Protection Portal demonstrate the Government’s commitment to addressing corruption, unnecessary bureaucracy and administrative delays affecting investors. The President’s continued engagement with Ugandans in the diaspora and encouragement for them to invest their resources, expertise and networks in their motherland provide opportunities to establish businesses, create employment, transfer skills and technology, and strengthen the economy. I call upon leaders at all levels to support the President and the country’s development agenda by mobilising Ugandans to take advantage of available opportunities.
The author is the Minister for the Presidency and the Budhiope West MP
Investment and national transformation
Uganda’s Fourth National Development Plan (NDP IV), covering FY2025/26–2029/30, prioritises wealth creation, employment, industrialisation and higher household incomes as part of the ambition for tenfold economic growth by 2040.
Ugandans abroad should be encouraged to invest in agriculture, tourism, manufacturing, healthcare, technology, construction and other productive sectors. Those unable to return permanently can participate through joint ventures, partnerships, investment funds and professional exchanges. By familiarising themselves with government programmes and investment facilitation services, diaspora members can identify opportunities that align with their expertise and financial capacity.
Diaspora as national ambassadors
Ugandans abroad can also promote tourism, attract investors, support exporters and showcase Uganda’s cultural heritage. Through cultural festivals, professional associations and business forums, they can strengthen international relationships and promote the country as a destination for business, tourism and investment.
Protecting investors, partnerships
I sincerely thank our President, Yoweri Kaguta Museveni, for his efforts to create a conducive investment environment. Initiatives such as the State House Investors Protection Unit and the Electronic Investors Protection Portal demonstrate the Government’s commitment to addressing corruption, unnecessary bureaucracy and administrative delays affecting investors. The President’s continued engagement with Ugandans in the diaspora and encouragement for them to invest their resources, expertise and networks in their motherland provide opportunities to establish businesses, create employment, transfer skills and technology, and strengthen the economy. I call upon leaders at all levels to support the President and the country’s development agenda by mobilising Ugandans to take advantage of available opportunities.
The author is the Minister for the Presidency and the Budhiope West MP