Remittances from Ugandans working abroad are likely to rise following the signing of a pact between dfcu Bank and WorldRemit, a global money transfer service.

Cash remittances from abroad, which make up 4% of Uganda’s GDP took a nosedive in 2019 following the lockdown of the global economy due to the Covid 19 pandemic.

Speaking at the unveiling ceremony held at the bank’s headquarters along Kyadondo Road recently, Miranda Bageine Musoke, dfcu Bank’s Head of Personal Banking said that while remittances amounted to $1.4b in 2018 it went down to $1.1b in 2020 before nosediving to $800m in 2021.

“While the impact of the Covid-19 pandemic on both the global and Ugandan economies cannot be denied, remittance flows still provide crucial support to many families. Currently, Uganda ranks among Sub-Saharan Africa’s top 10 recipient countries,” she said, adding that this pact reveals the confidence local financial institutions have in Uganda’s economic rebound following the recent reopening of the economy.

Musoke said the partnership between dfcu Bank and WorldRemit offers a much-needed solution, which has the potential to increase access to and use of remittances received by households for greater financial inclusion and investment opportunities.

Ivan Kanyali, WorldRemit’s Uganda Country Manager said that their ambition is to streamline digital cross-border payments, adding that their money transfer and fund access initiatives pave a smoother road for those who need to manage their finances and remittances between different countries.

He said that data has it that there are about 1.4 million Ugandans working abroad, and the UK tops the list of remittances, followed by the US, Sweden and Australia.

WorldRemit currently has a footprint in 50 countries around the world, and these are likely to feed into dfcu Bank’s 56 branches around Uganda.