KAMPALA, Uganda — Diaspora remittances to Uganda reached $1.42 billion (5.1 trillion Ugandan shillings) in 2024, more than doubling over the last decade, according to Bank of Uganda data. These inflows, which grew by 63 percent, have become a vital economic anchor and a significant source of foreign exchange for the East African nation.
Though slightly below the $1.51 billion (5.4 trillion shillings) recorded in 2023, the 2024 figures underscore the consistent growth of remittances. These funds now rival foreign exchange earnings from key sectors such as tourism, which generated $1.52 billion (5.4 trillion shillings) in the 12 months to March 2025, and coffee exports, which brought in $1.54 billion (5.5 trillion shillings) in 2024. Gold exports remain Uganda’s top earner, totaling $3.37 billion (12.1 trillion shillings) in the 12 months to December 2024.
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Bank of Uganda data reveals that remittance inflows surged from $901.87 million (3.2 trillion shillings) in 2015 to $1.42 billion (5.1 trillion shillings) in 2024, an increase of $527.47 million (1.8 trillion shillings). This growth rate significantly outpaced the 36.3 percent expansion observed between 2005 and 2014, when remittances increased from $321.81 million (1.1 trillion shillings) to $885.93 million (3.1 trillion shillings).
Over the past 24 years, remittance inflows have grown by 410 percent, climbing from $348.57 million (1.2 trillion shillings) in 2001 to the current $1.42 billion (5.1 trillion shillings). The country first exceeded the $1 billion (3.6 trillion shillings) mark in 2016, with receipts totaling $1.14 billion (4.1 trillion shillings). Annual average growth has been $1.27 billion (4.5 trillion shillings), with a compound growth rate of 11.6 percent over the last decade. While inflows reached $1.16 billion (4.1 trillion shillings) in 2017, $1.33 billion (4.7 trillion shillings) in 2018, and $1.42 billion (5.1 trillion shillings) in 2019, a deceleration to $1.06 billion (3.8 trillion shillings) occurred in 2020, primarily due to the global impact of the COVID-19 pandemic. Inflows recovered to $1.15 billion (4.1 trillion shillings) in 2021, grew to $1.25 billion (4.5 trillion shillings) in 2022, and reached a historical peak of $1.51 billion (5.4 trillion shillings) in 2023 before the slight decline in 2024.
Dr. Adam Mugume, the Bank of Uganda director for research, stated Wednesday that remittances are projected to grow to $1.51 billion (5.4 trillion shillings) in the 2025-26 financial year. He noted that the majority of these inflows are directed toward education and health care, sectors with relatively lower multiplier effects on the broader economy. Mugume suggested that channeling remittances into investments would yield a greater economic impact.
“Countries have developed using remittances plus technology transfer of the returning citizens for development,” Mugume said, adding that recent inflows have been predominantly from Ugandans working in the Middle East.
While the exact number of Ugandans living abroad remains unconfirmed, Ministry of Gender, Labour and Social Development data indicates approximately 100,000 Ugandans formally seek employment overseas annually, primarily in the Middle East. Saudi Arabia is the leading destination, accounting for more than 89 percent of Ugandan migrant workers. Between 2022 and 2023, at least 120,459 migrant workers departed Uganda, with women representing 77.5 percent of that total. Of these, 107,448 went to Saudi Arabia, followed by Qatar (6,086), UAE (4,457), Somalia (1,108), Iraq (1,081), Kuwait (262), and Bahrain (six). Smaller numbers traveled to European countries, including Poland and Romania.
Beyond serving as a source of remittances, labor externalization also contributes to government revenue. From 2022 to 2023, the government collected 25 billion Ugandan shillings in fees from migrant workers. The sector has expanded, with approximately 390 companies licensed for labor externalization as of December 2023.
Wilbrod Owor, executive director of the Uganda Bankers Association, emphasized the role of labor externalization in addressing unemployment and facilitating skills acquisition. Owor urged the government to implement policy incentives to attract greater remittances, citing Egypt’s annual remittances of $24.5 billion (90 trillion shillings) as a comparative benchmark. “We, as a country, need a lot of money for infrastructure development,” Owor said. “So … we need to discuss policy frameworks and all those incentives that we can do to make Ugandans and many others send as much money back home.”
