Why Uganda should take the diaspora more seriously

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OPINION

By Mohammed Bagonza

In Uganda’s ambitious drive to grow the economy tenfold from $50 billion to $500 billion by 2040, the diaspora must be recognised and treated as a strategic economic sector central to achieving this goal.

Uganda’s diaspora has quietly become one of the country’s most powerful economic sectors.

Data from the Bank of Uganda indicate that in the last 2024/25 financial year, remittance inflows surged to about $1.6b (about sh5.8 trillion), up from $1.4b (about sh5 trillion) the year before, highlighting the growing role of Ugandans abroad in the socio-economic development of the country.

Diaspora remittances are now rivalling Uganda’s other top foreign exchange earners like Gold, coffee and tourism, yet, despite this enormous contribution, the diaspora remains largely treated as a social constituency rather than an economic force.

If Uganda is serious about building a tenfold economy, then deliberate investment in diaspora engagement, skills mobilisation and structured remittance channels is no longer optional; it is a strategic necessity.

We must pick inspiration from other countries such as Kenya, Ethiopia and India that have taken the diaspora seriously.

Unlike Uganda, these countries have deliberately elevated their diaspora from a social community to a core economic constituency.

Kenya has deliberately positioned its diaspora as a strategic economic constituency, institutionalising engagement through the creation of the State Department for Diaspora Affairs in 2022, a number of reforms and a National diaspora policy framework, embassy-led mobilisation, digital investment platforms, and targeted financial instruments such as diaspora bonds.

This approach has helped channel diaspora savings into housing, health, agribusiness, fintech and SMEs, contributing to the country’s leading remittance inflows in East Africa, estimated at over $5 billion (about shillings 18 trillion) in 2025, which has surpassed Kenya's other top foreign exchange earners such as tea, tourism, horticulture and coffee.

Ethiopia has integrated its diaspora into national development through structured savings schemes, industrial park investments and political inclusion, recognising remittances as a pillar of macroeconomic stability. Ethiopia’s remittances exceeded $6 billion in 2024.

India, whose diaspora remittances, $135.46 billion (around shillings 480 trillion), exceeding those of any other country globally, has built an entire ecosystem around its overseas population, from special banking products and investment windows to political representation and skills-transfer programmes.

In contrast, Uganda approach to its diaspora is largely through ad hoc outreaches and crisis response, rather than as a long-term development partner anchored in policy, finance and national planning.

According to the 2024 Uganda National Population and Housing Census, at least two million Ugandans live in the diaspora, many of whom are highly skilled, globally exposed and eager to contribute to national development.

The critical policy question, however, is not their willingness, but how Uganda can effectively integrate them into the country’s economic and institutional systems, harness their expertise, and translate their global experience into innovation, investment and sustainable growth.

Encouragingly, there are already signs of progress. The goodwill and broad national vision demonstrated by President Yoweri Museveni, together with the establishment of the Diaspora Department within the Ministry of Foreign Affairs, the Diaspora Unit under State House, and related diaspora desks across various MDAs, reflect a clear policy intent.

During the Second Uganda Diaspora Convention held in December 2025 at Commonwealth Speke Resort Munyonyo, Ugandan professionals from across the world raised a clear and urgent concern. While many are thriving and contributing to the growth of their host countries, they lack structured and accessible pathways to deploy their skills and experience back home.

They called on the government to move beyond symbolic engagement and adopt deliberate, coordinated mechanisms to identify, connect and integrate diaspora expertise into national priorities such as industrialisation, innovation, healthcare and education.

With the number of Ugandans abroad, even a modest shift from remittances to investment could have a transformative impact on the economy. If a critical mass of diaspora savings were mobilised into productive ventures, Uganda’s Foreign Direct Investment (FDI) and foreign exchange earnings could expand significantly, narrowing the gap with countries such as Kenya that have adopted more deliberate diaspora engagement strategies.

This is why Uganda must move beyond passive engagement and treat its diaspora as a strategic economic partner. Government efforts to develop a secure and credible diaspora bond and tailored projects is therefore a step in the right direction, providing a trusted channel for Ugandans abroad to invest collectively in national development.

With the Tenfold Growth Strategy aiming to drive rapid, sustainable economic growth through four core pillars, Agro-industrialisation, Tourism development, Mineral-based industrialisation, and Science, Technology & Innovation (ATMS), there is strong interest among diaspora professionals and investors to contribute capital, skills and global networks.

What is needed now is a deliberate, coordinated and well-communicated strategy to match this willingness with bankable projects, transparent systems and predictable policy support. Done well, diaspora investment could become a powerful engine of socio-economic transformation, job creation and sustainable growth.

Unlike many traditional sectors that depend on massive investment, the diaspora represents a renewable and enduring national asset. While some industries, such as mining, have a limited lifespan, the global Ugandan community continues to grow. What it requires is not massive public expenditure, but a clear, well-structured and credible framework that enables every Ugandan abroad to participate meaningfully in national development.

With the right policies, institutions and investment channels, the diaspora can become a permanent pillar of Uganda’s transformation, mobilising capital, skills, technology and global networks sustainably.

The writer is the Senior Presidential Advisor on Diaspora Affairs and the Head of the State House Diaspora Unit.