"WE DON'T JUST SEND MONEY; WE DELIVER HAPPINESS," NAGHOOR SAID

Uganda's attractive remittance market is drawing more international players, with InstaRemit, a subsidiary of Flex Money Group, obtaining a license from the Bank of Uganda.

"Uganda stands at the heart of our focus markets in Sub-Saharan Africa. Our innovative omnichannel approach, which combines physical branches with cutting-edge digital cross-border payment solutions, uniquely positions us to meet the needs of this vibrant market," Riyaz Naghoor, the chief executive officer of Flex Money Group, said in a statement to New Vision.

"Uganda being one of the largest receiving remittance markets in Africa, presents a huge opportunity for us to enhance the efficiency of both inward and outward remittances. We don't just send money; we deliver happiness. With our operations in Uganda, we are ready to amplify this impact further."

Remittances, which are the single-biggest source of forex inflows into Uganda stood at $1.4b (sh5.5 trillion) in the last 12 months to January this year. The inflows arise from individuals' temporary

or permanent move to foreign economies, such as the Middle East, the US or other neighboring countries in the region.

Compared to recent years, the ratio of personal transfers or remittances received as a percentage of gross domestic product (GDP) increased from 2.3% in 2021 to 2.7% in 2022, according to data from the Bank of Uganda. The ratio was as high as 4% before the pandemic in 2018.

Early this month, the central bank awarded a money remittance license to NALA, another provider of cross-border payments, following a $40m (sh149b) funding round. The license allows NALA to operate in the Ugandan market with its instant money transfer service.

TRENDS IN REMITTANCES

The total personal transfers received in 2022 were InstaRemit limited head of operations Daniel Kiptum (centre) hands over a gift to Anzad Khan, the general manager of East African Glassware Mart during the company's launch in Kampala. Left is Naghoor with other staff

estimated at $1,2b, an increase of 8.3% from $1.1b for 2021, according to the central bank's Annual Personal Transfer Survey for 2022.

The increase was observed for both cash and in-kind relatives, both within and transfers.

About. 20% of total remittances are reported to be going through unregulated channels, such as friends and abroad.

The primary sources of total personal transfers by value were the Middle East at $426.5m, Africa ($282.5m), North America ($268.1m) and Europe ($226.9m).

The primary sources of cash transfers were countries in the Middle East (Saudi Arabia, United Arab Emirates, and Qatar), North America (the US and Canada), and Africa (South Sudan, Somalia, and South Africa).

"The channels used were chosen by the remitter in most cases, as reported by 61.9% of the households. The choice of the channels is also guided by the ease of access, favorable transaction charges, the safety of the funds, and prompt services," the central bank report reads in part.

In 2022, the Middle East accounted for $380.2m (37.3%), North America accounted for $196.8m (19.3%) and Africa accounted for $249.8m (24.5%). respectively.

Europe accounted for $161.8m (15.9%), while Australasia contributed the least share of personal transfers among the regions, accounting for $32m (3.1%).

"One of the challenges people in the diaspora face is the issue of how safe they can send their money back home," Sophie Birungi, the foreign service officer in the Ministry of Foreign Affairs, said.

By All Twaha

NEWVISION